L'Oréal (OR) H1 2025 earnings summary

Executive summary

• Sales reached €22.47 billion in H1 2025, up 3.0% like-for-like and 1.6% reported year-over-year, with sequential acceleration in Q2 growth to 3.7% like-for-like.

• Operating margin expanded to 21.1%, up 30 basis points, with all divisions above 22% margin and three reaching record first-half margins.

• Net profit excluding non-recurring items rose 1.0% to €3,783 million; EPS up 1.2% to €7.07.

• Growth was well-balanced between volume and value, with double-digit advances in emerging markets and a return to growth in mainland China.

• Acquisitions of Medik8 and Color Wow strengthened the brand portfolio and supported innovation.

Financial highlights

• H1 2025 sales: €22,473.3 million (+3.0% like-for-like, +1.6% reported year-over-year); gross profit margin at 74.7%, down 10 bps year-over-year.

• Operating profit: €4,740.1 million (+3.1% year-over-year), margin at 21.1%.

• Operating net cash flow increased 38% to €2,741.3 million, driven by improved working capital.

• Investments totaled €766 million (3.4% of sales), stable year-over-year.

• Sale of 2.1% Sanofi stake generated €3 billion cash inflow.

Outlook and guidance

• Management expects continued global beauty market growth in H2 2025, with further acceleration from new product launches and the Beauty Stimulus Plan.

• Confident in outperforming the market and delivering another year of sales and profitability growth despite economic and geopolitical tensions.

• Full-year 2025 beauty market growth estimated at 4%.

• E-commerce and online channels expected to continue outpacing market growth, with e-commerce at 29% of sales.