L'Oréal (OR) Q3 2024 earnings summary

Executive summary

• Achieved 6% like-for-like sales growth for the first nine months of 2024, reaching €32.4 billion, with growth in all divisions and regions except North Asia, despite external headwinds, especially in China and travel retail.

• Growth was balanced between value and volume, with robust trends in Europe, North America, and emerging markets, and continued share gains in three out of four divisions.

• Fragrance and haircare segments showed strong growth, while makeup is recovering, supported by new product launches.

• Online sales outpaced offline, especially in emerging markets.

• Acquisition of a 10% stake in Galderma and recognition for diversity and innovation were notable achievements.

Financial highlights

• Group sales for the first nine months: €32.41 billion, up 6.0% like-for-like and reported.

• Growth at constant exchange rates was 8.1%; currency fluctuations had a -2.1% impact.

• Fragrance and haircare delivered double-digit growth year-to-date; makeup is gradually recovering.

• Dermatological Beauty division saw a slowdown in Q3, mainly due to U.S. market deceleration and sun care inventory effects.

• Exceptional French tax for 2024 estimated at €250 million.

Outlook and guidance

• Q4 expected to be consistent with Q3, with holiday season strength in fragrances but continued macro uncertainty, especially in China.

• Confident in outperforming the market for full-year 2024 and delivering growth in sales and operating profits.

• 2025 global beauty market expected to return to pre-COVID growth rates of 4–5%.

• Preparing a robust Beauty Stimulus Plan for 2025, with increased innovation and product launches across all categories.