L'Oréal (OR) investor relations material

Executive summary

• Achieved sales of €23.77 billion in H1 2026, up 6.8% like-for-like and 5.8% reported year-over-year, with adjusted like-for-like growth of 6.5%, outpacing the global beauty market.

• Record operating margin of 21.3% (+20bps) and gross margin of 74.8% (+10bps), with operating profit rising 6.8% to €5.06 billion.

• Net profit excluding non-recurring items rose 4.8% to €3,959.6 million, with diluted EPS at €7.40 (+4.8%).

• Growth was broad-based across all divisions and regions, with standout performances in SAPMENA-SSA (13.8%), North America (6.7%), Europe (6.1%), and strong double-digit growth in Professional Products and Dermatological Beauty.

• E-commerce sales surged 18%, reaching €7.4 billion, nearly double the market rate, and innovation and digital transformation—including AI—accelerated.

Financial highlights

• Sales: €23.77 billion (+6.8% like-for-like, +5.8% reported year-over-year); gross margin: 74.8% (+10bps); operating margin: 21.3% (+20bps); operating profit: €5,063.0 million (+6.8%).

• Net profit attributable to owners (excluding non-recurring items): €3,959.6 million (+4.8%); EPS: €7.40 (+4.8%).

• Operating cash flow increased 13.9% to €3.12 billion; capital expenditures €716 million (3% of sales).

• Net debt at €12.7 billion as of June 30, 2026; cash position at €4.05 billion.

• Net financial charges totaled €187 million; dividend income was €366 million.

Outlook and guidance

• Management expects continued strong demand for beauty in H2 2026 and aims to outperform the global market, with estimated beauty market growth of 4.5–5% for the year.

• Confident in maintaining growth pace in H2, driven by innovation, e-commerce, and new brand rollouts.

• Skincare and acquisitions (Creed, Innovist) to support H2 growth; North Asia and China recovery to continue.

• Currency fluctuations expected to have a minor negative impact (-0.6%) on full-year sales if current rates persist.