L'Oreal(US:LRLCY) Nan Fang Du Shi Bao·2025-07-31 05:30Core Viewpoint - L'Oréal Group reported a notable performance for the first half of 2025, with overall revenue increasing by 3% to €22.47 billion (approximately ¥186.2 billion) and operating profit rising by 3.1% to €4.74 billion (approximately ¥39.28 billion), despite challenges in the high-end beauty market and global economic pressures [2][4][5]. Group Performance - The group's revenue and operating profit have shown growth over the past five years, with double-digit growth from 2021 to 2023. However, growth rates have significantly slowed in recent years, with revenue and operating profit growth dropping to single digits in 2024 and further declining in 2025 [4]. - The CEO, Nicolas Hieronimus, attributed the slowdown to global economic pressures but expressed optimism for the second half of the year, anticipating a gradual recovery in the global beauty market [5]. Division Performance - Professional Products division saw a sales increase of 6.5% to €2.55 billion, marking the strongest performance across all divisions. The Dermatological Beauty division grew by 3.1% to €3.86 billion, with La Roche-Posay being a significant contributor [7]. - Consumer Products division reported a 2.8% increase in sales to €8.41 billion, while the Luxury division experienced a 2% growth to €7.66 billion, indicating ongoing challenges in the high-end beauty market [7]. Regional Performance - The fastest-growing regions for L'Oréal in the first half of 2025 were SAPMENA-SSA and Latin America, with sales growth of 10.4% and 10.3%, respectively [8]. - The North American market grew by 2% to €5.82 billion, while the North Asia market saw a decline of 1.1% to €5.30 billion, with a notable drop of 8.8% in the second quarter [8]. Strategic Developments - L'Oréal announced the acquisition of majority stakes in the high-end haircare brand Color Wow and the skincare brand Medik8, enhancing its brand portfolio in the Professional Products and Luxury divisions [8]. - The company is collaborating with NVIDIA to leverage AI in beauty technology, showcasing innovations at the Viva Technology exhibition [10]. - L'Oréal launched a new "Sustainable Innovation Accelerator" project, planning to invest €100 million over five years to address key industry challenges and enhance sustainability efforts [10]. Upcoming Events - L'Oréal will participate in the upcoming China International Import Expo for the eighth consecutive year, showcasing new brands, products, and technologies, marking its largest presence in the event's history [11].