L'Oréal (OR) H2 2024 earnings summary

Executive summary

• Achieved record 2024 results with consolidated sales up 5.6% to €43.5 billion and like-for-like growth of 5.1%, outpacing the global beauty market's 4.5% growth.

• Gross margin reached an all-time high of 74.2%, and operating margin hit 20% for the first time, with EPS up 4.8% to €12.66.

• All divisions grew like-for-like, with standout performances in Dermatological Beauty (+9.8%) and Professional Products (+5.3%), while North Asia faced softness due to China and travel retail.

• Europe and emerging markets were particularly dynamic, with significant gains, while North Asia declined due to a challenging Chinese ecosystem.

• Sustainability and ESG leadership recognized with 97% renewable energy at sites, SBTi approval, and EcoVadis Platinum Medal.

Financial highlights

• Gross profit rose 6% to €32.3 billion; gross margin up 30bps to 74.2%.

• Operating profit increased 6.7% to €8.7 billion; operating margin up 20bps to 20%.

• Net profit (excluding non-recurring items) was €6.8 billion (+4.8%); EPS reached €12.66.

• Cash flow up 8.6% to €6.6 billion; operating net cash flow up 8.6%.

• Dividend proposed at €7 per share (+6.1%), payout ratio 55.3%.

Outlook and guidance

• Expects global beauty market growth of 4%-4.5% in 2025 and aims to outperform, with growth expected to accelerate through the year.

• Focus on innovation, Beauty Stimulus Plan, and expansion in emerging markets to drive future growth.

• Continued investment in R&I (3% of sales) and digital/AI-driven consumer engagement.

• Committed to modest margin expansion in 2025 despite increased investment.