Core Viewpoint - La Roche-Posay is facing public scrutiny over its thermal water spray product, which is criticized for being perceived as overpriced due to its composition being primarily water [1] Group 1: Product Controversy - Consumers have labeled La Roche-Posay's thermal water spray as a "smart tax," questioning the justification for its high price when it contains only water [1] - The product is priced at 119 yuan for 150ml and starts at 129 yuan for 300ml, with claims of containing unique minerals and trace elements to soothe and enhance skin resilience [1] - Official representatives clarified that the water is sourced from a natural spring in France and undergoes rigorous processing to retain its mineral content [1] Group 2: Company Background - La Roche-Posay is a brand under L'Oréal, established in 1975, focusing on the development and sale of medical skincare products [1] - The brand has previously faced controversy, including a recall of its Effaclar Duo acne treatment due to the detection of trace amounts of benzene [2] Group 3: Financial Performance - L'Oréal reported a sales revenue of 22.473 billion euros for the first half of 2023, reflecting a year-on-year growth of 3% [3] - The operating profit for the same period was 4.74 billion euros, also showing a growth of 3.1% [3] - Sales growth varied across segments, with mass cosmetics at 8.41 billion euros (up 2.8%), professional hair products at 2.55 billion euros (up 6.5%), luxury cosmetics at 7.66 billion euros (up 2%), and skin science products at 3.86 billion euros (up 3.1%) [3]

Core Viewpoint - L'Oréal is facing significant challenges due to contamination issues with its products, specifically related to the presence of benzene, a recognized carcinogen, leading to product recalls and legal actions [2][3][5]. Group 1: Product Recall and Contamination - L'Oréal has recalled all batches of its Effaclar Duo acne treatment product in the U.S. after detecting trace amounts of benzene [2][3]. - The recall is limited to the U.S. and Canadian markets, with no impact on the Chinese market [3]. - Benzoyl peroxide, a key ingredient in the product, is known to be unstable and can lead to the formation of benzene [3]. Group 2: Legal Issues and Brand Impact - In January, L'Oréal faced multiple class-action lawsuits related to benzene contamination in its CeraVe brand products, with claims that benzene levels exceeded federal safety standards [5]. - The company is currently dealing with six class-action lawsuits targeting the CeraVe brand and L'Oréal itself [5]. - The beauty industry is facing scrutiny, with several L'Oréal brands appearing on a blacklist for consumer complaints [5]. Group 3: Financial Performance - L'Oréal reported a total sales revenue of €43.487 billion (approximately ¥329.429 billion) for the year 2024, reflecting a year-on-year growth of 5.6% [6]. - The operating profit reached €8.688 billion (approximately ¥65.821 billion), marking a historical high for the company [6].