Core Viewpoint - L'Oréal delivered a robust performance in 2025, achieving a sales revenue of €44.05 billion (approximately ¥361.09 billion) with a comparable growth of 4.0%, despite challenges in the global beauty market and currency pressures [3][4][31] Financial Performance - Annual sales reached €44.05 billion, with a comparable growth of 4.0%. Quarterly growth accelerated from 3.5% in Q1 to 6.0% in Q4 [3] - Operating profit margin improved to 20.2%, marking a historical high with a year-on-year increase of 20 basis points [3] - Operating cash flow was €7.2 billion, reflecting a year-on-year growth of 7.8%, indicating the best cash flow health in recent years [3] Business Segment Performance - All four major business divisions reported positive growth, with the Professional Hair Products division leading at a 7.5% comparable growth rate and sales exceeding €5 billion for the first time [6] - The Skin Science and Beauty division grew by 5.5%, with significant fourth-quarter acceleration to double-digit growth [8] - The Luxury Cosmetics division saw a 2.8% increase in annual sales to €15.595 billion, with a notable 3.6% growth in the second half, excluding the struggling Asian travel retail sector [10] - The Mass Market Cosmetics division achieved a 3.5% growth, primarily driven by hair care products [11] Regional Performance - North Asia reported a 0.5% year-on-year growth, marking the first positive result after two years of decline, with the Chinese market being a key driver [15] - Europe experienced a 4.4% comparable growth, outperforming the regional beauty market for the third consecutive year [13] - North America showed a clear V-shaped recovery with a 3.4% annual growth, improving from 2.0% in the first half to 4.9% in the second half [13] Strategic Developments - L'Oréal is focusing on high-end, medical, and licensed brands, with a significant acquisition of Kering's beauty business for €4 billion, enhancing its luxury fragrance portfolio [21][22] - The company is investing in technology, launching innovative products like the Light Straight+Multi-styler and LED Face Mask, and establishing a new Beauty Tech center in Mumbai to develop AI-based beauty solutions [28][29] - A major organizational restructuring has occurred, with key personnel changes aimed at leveraging localized experience from emerging markets to enhance operations in North America and travel retail [24][25] Market Trends - The company is shifting from prioritizing overall growth to focusing on quality market share expansion, concentrating resources on profitable and high-potential segments [20] - L'Oréal's strategy includes launching customized products tailored to Chinese consumer demands, reflecting a trend towards localized innovation [19]

Core Insights - L'Oréal's like-for-like growth accelerated to +4.9% in Q3, with contributions from all regions, particularly the US and mainland China [2][5] - The company announced a strategic alliance with Kering, acquiring Creed and enhancing its position in niche fragrances [4][48] - Overall sales for the first nine months reached €32.80 billion, reflecting a +3.4% like-for-like growth [5][9] Sales Performance - Sales for the first nine months of 2025 were €32.80 billion, up +1.2% reported and +3.4% like-for-like [5][9] - Growth at constant exchange rates was +4.0%, with currency fluctuations negatively impacting sales by -2.8% [6][9] - All divisions showed growth, with double-digit growth online significantly outpacing the market [9][10] Division Performance - **Professional Products**: Grew +7.4% like-for-like and +5.3% reported, driven by strong e-commerce and salon services [11][12] - **Consumer Products**: Achieved +3.1% like-for-like growth, with notable improvements in North America and emerging markets [15][16] - **Luxe Division**: Grew +2.2% like-for-like, with strong performance in fragrances and a recovery in mainland China [19][20] - **Dermatological Beauty**: Posted +3.7% like-for-like growth, led by brands like La Roche-Posay and SkinCeuticals [23][25] Regional Performance - **Europe**: Sales grew +3.6% like-for-like, with strong momentum in premium haircare and Luxe brands [27][28] - **North America**: Grew +1.8% like-for-like, with significant gains in makeup and haircare [31][33] - **North Asia**: Sales increased +0.5% like-for-like, with mainland China showing signs of recovery [35][36] - **SAPMENA-SSA**: Grew +11.0% like-for-like, driven by strong performances across all divisions [38][40] - **Latin America**: Achieved +8.2% like-for-like growth, with strong contributions from Professional Products and Luxe [43][44] Strategic Developments - L'Oréal's acquisition of Color Wow and Medik8 strengthens its position in the premium haircare market [14][48] - The company received multiple accolades for its innovations and sustainability efforts, including recognition in TIME's Best Inventions of 2025 [48]