L'Oréal Finance : 2019 Half-Year results Aller au contenu principal

Strong growth continues: +7.3% 1
Substantial increase in operating profit: +12.1% 2

  • Sales: 14.81 billion euros

    • +7.3% like-for-like 1
    • +8.4% at constant exchange rates
    • +10.6% based on reported figures
  •  Double-digit growth at L'Oréal Luxe and Active Cosmetics
  •  Very dynamic growth in Asia Pacific
  •  Strong progression of the main growth drivers: Asia, Travel Retail, e-commerce and skincare
  •  Substantial increase in operating profit: +12.1% 2 at 2,888 million euros
  •  Record operating margin of 19.5%
  •  Operating cash flow up +23.2%

Download presentations of the conference call held on 31 July 2019.

Commenting on these figures, Mr Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal, said: 

"L'Oréal has delivered its strongest first half like-for-like growth in more than a decade at +7.3% 1, outperforming a dynamic market which has, for the second year running, posted one of its highest-ever growth rates.  

All the Divisions are growing, and notably the L'Oréal Luxe and Active Cosmetics Divisions which posted double-digit growth. The progression of L'Oréal Luxe is being driven by its four big brands: Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl's. The Active Cosmetics Division continues to benefit from the growing appetite for healthy beauty and is posting geographically balanced growth. The performance of the Consumer Products Division is improving semester by semester, thanks especially to the success of L'Oréal Paris, the world's number one beauty brand. Meanwhile, the transformation of the Professional Products Division is ongoing.
Across the geographic Zones, the New Markets are growing very strongly, particularly the Asia Pacific Zone, which is now the Group's number one Zone. China is maintaining its pace of growth, and India, Malaysia, Indonesia and Vietnam are all posting double-digit growth. North America is still being held back by the slowdown in makeup. Sales are increasing in Western Europe, in a market which remains difficult.

Digital continues to boost growth and reinforces our relationship with our consumers. At the same time, e-commerce 3 is up by +48.5% 1, and represents 13.2% of total sales. Travel Retail, another of the Group's growth drivers, has grown by +21.2% 1. 

Operating profit has increased strongly by +12.1% 2, setting a new record in operating margin of 19.5%. Net earnings per share 4 is up +7.2% at 4.38 euros. After allowing for 139 million euros of non-recurring items, net profit comes out at 2,326 million euros. Operating cash flow is up +23.2%. 

In a volatile and contrasted environment, this good first half gives us confidence in our capacity to outperform the market in 2019 and achieve another year of growth in sales and profits." 

Moreover, the Board of Directors has decided, under the authorisation voted by the Annual General Meeting of 18 April 2019, to set up a share buyback programme amounting to a maximum of 750 million euros and with a maximum number of shares to be acquired of 3 million during the second half of 2019. All the shares bought back will be cancelled 5.

2019 Half-Year sales

Like-for-like, i.e. based on a comparable structure and identical exchange rates, sales of the L'Oréal group grew by +7.3%.
The net impact of changes in the scope of consolidation was +1.1%.
Growth at constant exchange rates amounted to +8.4%.
Currency fluctuations had a positive impact of +2.2%. If the exchange rates at 30 June 2019, i.e. €1 = $1.138, are extrapolated until 31 December 2019, the impact of currency fluctuations on sales would be approximately +1.5% for the whole of 2019.
Based on reported figures, the Group's sales at 30 June 2019 amounted to 14.81 billion euros, i.e. +10.6%.


  2ND QUARTER 2019   1ST HALF 2019
BY DIVISION            
Professional Products 878.9  +2.7%  +5.4% 1,714.2  +2.5%  +5.1%
Consumer Products 3,245.9  +2.8%  +5.9% 6,530.5  +3.1%  +6.4%
L'Oréal Luxe 2,470.4  +12.2%  +15.5% 5,150.1  +13.2%  +17.3%
Active Cosmetics 665.7  +14.4%  +16.3% 1,416.7  +13.6%  +15.1%
Groupe total 7,261.0  +6.8%  +9.8% 14,811.5  +7.3%  +10.6%


Western Europe  2,043.6  +0.9%  +1.7% 4,212.6  +1.0%  +1.9%
North America 1,910.3  -1.1%  +4.5% 3,805.7  0.0%  +6.8%
New Markets, of which: 3,307.1  +16.5%  +19.2% 6,793.1  +16.6%  +19.3%
   Asia Pacific  2,228.4  +25.5%  +30.3% 4,626.4  +24.3%  +30.4%
   Latin America 6 456.3  +0.2%  +0.1% 878.6  +1.9%  -0.5%
   Eastern Europe 447.8  +7.9%  +6.1% 931.3  +7.5%  +3.5%
   Africa, Middle East 174.6  -9.7%  -6.4% 356.7  -5.4%  -1.5%
Group total 7,261.0  +6.8%  +9.8% 14,811.5  +7.3%  +10.6%


At the end of June, the Professional Products Division is at +2.5% like-for-like and +5.1% based on reported figures.
The Division continues to grow, driven by the acceleration in the United States and in the Asia Pacific Zone, where it is winning market share. Eastern Europe remains dynamic, while Latin America and Western Europe are penalised by the inertia of certain markets.
Haircare, the number one contributor to growth, is being boosted by the strong growth of Kérastase, fuelled by the success of Resistance Extentioniste and Blond Absolu and by the solid performance of the Total Results range at Matrix. Hair colour is benefiting from the outstanding double-digit growth of Shades EQ at Redken and the strong acceleration of Inoa at L'Oréal Professionnel.


In the first half, the Division posted growth of +3.1% like-for-like and +6.4% based on reported figures.
L'Oréal Paris maintains good growth momentum, thanks to the strong performance of face care, with the successful launch of Revitalift Filler ampoules and the international roll-out of Elvive Dream Lengths and the very good start of Elvive Colour Protect Purple shampoo. The resounding success of Rouge Signature in makeup is worth noting. Garnier is growing, driven by skincare with the strong worldwide growth of Micellar Cleansing Water and Tissue Masks, and the promising start of Garnier Organic in Western Europe. The Korean makeup brand 3CE Stylenanda is starting very well in China. The NYX Professional Makeup brand meanwhile is implementing a reworking of its distribution channels.
The Division is performing well in Western and Eastern Europe, particularly in Russia. It is clearly accelerating in Asia, particularly in China, India and Indonesia. It is however being held back by the sluggish makeup market in the United States.
Travel Retail and e-commerce are strong growth drivers.


At the end of June, L'Oréal Luxe confirmed its excellent start to the year, posting growth of +13.2% like-for-like and +17.3% based on reported figures, driven by its good performances in skincare.
The dynamism of the Division's top four brands continues, and once again recorded double-digit growth in the first half. Lancôme, thanks to its iconic lines Génifique and Absolue, and Kiehl's with the Ultra Facial and Calendula lines, delivered excellent performances over the period. Giorgio Armani and Yves Saint Laurent are taking advantage respectively of the success, in the lip segment, of Lip Maestro and Rouge Pur Couture The Slim, and in fragrances of Sì and Black Opium. Helena Rubinstein is confirming its success in the ultra-premium skincare market, and Atelier Cologne continues to expand rapidly.
L'Oréal Luxe is posting strong growth in Asia Pacific, particularly in China and in Travel Retail. Eastern Europe and Latin America are also performing well. The Division's sales remain sluggish however in North America.
As for e-commerce sales, the Division is continuing to accelerate.


The Active Cosmetics Division had an outstanding first half at +13.6% like-for-like and +15.1% based on reported figures.
All Zones are contributing to growth, with Asia Pacific, North America and Latin America performing particularly well.
All the major brands are contributing to growth. La Roche-Posay, posting double-digit growth, continues to accelerate in anti-ageing, with the continuing success of Hyalu B5 and the successful launch of Pure Vitamin C10 serum. Vichy is maintaining momentum, particularly with its star product Minéral 89, which continues to grow. The brand is also reinforcing its anti-ageing expertise by offering Vichy SkinConsultAI, the first algorithm for analysing signs of ageing from a selfie, which has been developed with dermatologists. SkinCeuticals is growing very fast across all Zones, with a record performance in Asia. CeraVe is winning market share across all the Zones where the brand is present, with a sharp acceleration in America, the brand's original market. The brand has been successfully launched in China.



The Zone recorded growth of +1.0% like-for-like and +1.9% based on reported figures.
In a mass market that is growing moderately, the Consumer Products Division is winning market share, particularly in makeup and face care with a good start from the Garnier Organic line and the success of Revitalift Filler ampoules by L'Oréal Paris. L'Oréal Luxe is dynamic in Germany, Scandinavia and across Southern Europe, but the second quarter was difficult in France. Growth in the Active Cosmetics Division is being driven by La Roche-Posay, which continues to outperform its market. The Professional Products Division is still being held back by a slowdown in sales in France and a difficult market in Italy.


The Zone is stable at 0.0% like-for-like and +6.8% based on reported figures. In a slowing market, the skincare and fragrances categories are still growing. The Active Cosmetics Division continues to post double-digit growth. L'Oréal Luxe performed well in skincare and fragrances, driven by the Kiehl's and Yves Saint Laurent brands, but is being held back by the decline in makeup. The Professional Products Division is winning market share and growing in hair colour, thanks to Redken and Pulp Riot. The Consumer Products Division is winning market share in skincare with L'Oréal Paris but is struggling with a strong footprint in makeup.


Asia Pacific: Growth in this Zone was +24.3% like-for-like and +30.4% based on reported figures. All Divisions achieved double-digit growth, with the most outstanding performances for the L'Oréal Luxe and Active Cosmetics Divisions. Growth is still being driven by Chinese consumers, and even more powerfully by the increasing success of e-commerce in China and across the whole Asia Pacific Zone. The premium skincare brands are performing particularly well, especially Lancôme, Yves Saint Laurent, Giorgio Armani and Helena Rubinstein. Growth in the Consumer Products Division meanwhile is being driven by the performance of L'Oréal Paris and the roll-out of 3CE Stylenanda. In Southern Asia, L'Oréal is posting strong growth and winning market share. 

Latin America: The Zone is at +1.9% like-for-like and -0.5% based on reported figures. Like-for-like growth in this Zone is being held back by Argentina. Sales are accelerating, especially in Mexico and Chile. In Brazil, the Consumer Products Division continues to face difficulties, while the other Divisions are growing. Across the Zone as a whole, the L'Oréal Luxe and Active Cosmetics Divisions continue to grow, with a double-digit increase for Active Cosmetics, driven by the dynamism of its big brands. In the Consumer Products Division, the makeup brands Maybelline New York and Vogue are performing well. Kérastase, in the Professional Products Division, is recording double-digit growth. 

Eastern Europe: The Zone recorded growth of +7.5% like-for-like and +3.5% based on reported figures. Russia, Turkey and Central European countries such as Romania and Ukraine are driving growth in this Zone. The Consumer Products and Active Cosmetics Divisions have the highest growth rates, thanks respectively to Maybelline New York and NYX Professional Makeup, as well as La Roche-Posay. 

Africa, Middle East: The Zone is down by -5.4% like-for-like and -1.5% based on reported figures. The luxury market remains difficult in the Middle East. Egypt, Morocco and Pakistan are growing, as well as the countries in sub-Saharan Africa. The Active Cosmetics Division is recording good growth, driven by La Roche-Posay and SkinCeuticals. 

Important events during the period 1/4/19 to 30/6/19 and post-closing events

  • From 16 to 18 May at the fourth edition of Viva Technology, L'Oréal presented its latest technological innovations, and its vision of the future of beauty and customer experience at its Limitless Beauty stand.
  • On 6 June, L'Oréal inaugurated at Aulnay-sous-Bois in France "MYT - Make Your Technology", the first 4.0 technology incubator dedicated to the industry and supply chain of the future. 
  • On 19 June, Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal was voted No.1 in the Glassdoor France Top CEO 2019 ranking, by the employees of the ranked companies.  
  • On 26 June, BOLD (Business Opportunities for L'Oréal Development), the corporate venture capital fund launched by L'Oréal in December 2018, took a minority stake in Carbios, a startup pioneering a solution for the recycling of plastic packaging. 
  • On 2 July, L'Oréal announced it had entered into exclusive negotiation with the Clarins group with a view to acquiring the Mugler and Azzaro brands.
  • On 12 July, L'Oréal announced the appointment of three new members to its Executive Committee: Alexandra Palt, Chief Corporate Responsibility Officer and Executive Vice-President of the Fondation L'Oréal, and Vincent Boinay, General Manager for Travel Retail Worldwide, will join L'Oréal's Executive Committee as of 1st September. Fabrice Megarbane, President L'Oréal China, joined L'Oréal's Executive Committee on 1st July.

2019 Half-Year results

The limited review procedures of the half-year consolidated accounts have been completed. The limited review report is being prepared by the Statutory Auditors.


Consolidated profit and loss account: from sales to operating profit. 

IN € MILLION 30/6/18 AS % OF SALES 31/12/18 AS % OF SALES 30/6/19 AS % OF SALES CHANGE H1-2019 VS. H1-2018
Sales  13,390.7 100.0%  26,937.4 100.0%  14,811.5 100.0% +10.6%
Cost of sales  -3,598.3 26.9%  -7,331.6 27.2%  -3,988.5 26.9%  
Gross Profit  9,792.4 73.1%  19,605.8 72.8%  10,823.0 73.1%  
R&D expenses  -447.2 3.3%  -914.4 3.4%  -459.7 3.1%  
Advertising and promotion expenses  -4,018.3 30.0%  -8,144.7 30.2%  -4,471.7 30.2%  
Selling, general and administrative expenses  -2,751.0 20.5%  -5,624.7 20.9%  -3,003.3 20.3%  
Operating profit  2,575.9 19.2%  4,922.0 18.3%  2,888.4 19.5% +12.1%

Gross profit, at 10,823 million euros, came out at 73.1% of sales, stable compared to the first half of 2018. 

Research and Development expenses, at 459 million euros, came out at 3.1% of sales. 

Advertising and promotion expenses came out at 30.2% of sales, an increase of 20 basis points, compared to the first half of 2018. 

Selling, general and administrative expenses, at 20.3% of sales, have decreased by 20 basis points.

Overall, operating profit increased by +12.1%, at 2,888 million euros, and amounted to 19.5% of sales, an increase of 30 basis points. Excluding the impacts related to the application of the IFRS 16 accounting rule, this increase comes out at +11.3%.  


  30/6/18 31/12/18 30/6/19
BY DIVISION            
Professional Products  313.4 19.2%  651.5 20.0%  327.9 19.1%
Consumer Products  1,275.4 20.8%  2,428.1 20.2%  1,351.1 20.7%
L'Oréal Luxe  1 026.7 23.4%  2,072.4 22.1%  1,227.3 23.8%
Active Cosmetics 326.2 26.5%  523.0 23.0%  376.1 26.5%
Total Divisions before non-allocated  2,941.7 22.0%  5,675.0 21.1%  3,282.3 22.2%
Non-allocated 7  -365.7 -2.7%  -753.1 -2.8%  -393.9 -2.7%
Group  2,575.9 19.2%  4,922.0 18.3%  2,888.4 19.5%

 The L'Oréal group is managed on an annual basis. This means that half-year operating profits cannot be extrapolated for the whole year.

The profitability of the Professional Products Division came out at 19.1%.

The Consumer Products Division's profitability came out at 20.7%.

L'Oréal Luxe improved its profitability at 23.8%, an increase of 40 basis points.

The Active Cosmetics Division remains at a very high profitability level at 26.5%.


Consolidated profit and loss account: from operating profit to net profit excluding non-recurring items.

IN € MILLION 30/6/18 31/12/18 30/6/19 CHANGE H1-2019 VS. H1-2018
Operating profit  2,575.9  4,922.0  2,888.4 +12.1%
Financial revenues and expenses excluding dividends received  +14.5  -1.9  -30.2  
Sanofi dividends  358.3  358.3  363.0  
Profit before tax and associates excluding non-recurring items  2,948.7  5,278.4  3,221.1  +9.2%
Income tax excluding non-recurring items  -646.7  -1,286.8  -748.8  
Net profit excluding non-recurring items of equity consolidated companies  -0.1  +0.1  0.0  
Non-controlling interests  -1.4  -4.1  -6.1  
Net profit excluding non-recurring items, after non-controlling interests 8  2,300.6  3,987.6  2,466.2  +7.2%
EPS 9 (€)  4.08  7.08  4.38  
Diluted average number of shares 563,242,060 563,098,506 563,247,153  


Overall financial expenses came out at 30 million euros, of which 26 million euros are related to the application of the IFRS 16 accounting standard.

Sanofi dividends amounted to 363 million euros.

Income tax excluding non-recurring items came out at 748 million euros, i.e. a tax rate of 23.2%, slightly above that of the first half of 2018, which was 21.9%.

Net profit excluding non-recurring items after non-controlling interests came out at 2,466 million euros, an increase of +7.2% compared with the net profit excluding non-recurring items reported on 30 June 2018.

Earnings per share, at 4.38 euros, has risen by +7.2% compared with the first half of 2018.


Consolidated profit and loss account: from net profit excluding non-recurring items to net profit.

IN € MILLION 30/6/18 31/12/18 30/6/19 CHANGE H1-2019 VS. H1-2018
Net profit excluding non-recurring items, after non-controlling interests 8 2,300.6 3,987.6 2,466.2 +7.2%
Non-recurring items -25.4 -92.2 -139.5  
of which:        
 - other income and expenses  -40.4  -94.7  -170.3  
 - tax effect +15.0 +2.5 +30.8  
Net profit after non-controlling interests 2,275.2 3,895.4 2,326.7 +2.3%

Non-recurring items mainly take into account costs relating to the reworking of the NYX Professional Makeup distribution channels, and Clarisonic's goodwill and brand impairment.


Gross cash flow amounted to 3,305 million euros, up by +18.9% compared with the first half of 2018. The amount includes a depreciation value of 209 million euros with regard to the right-of-use assets (IFRS 16).

The change in working capital amounted to 813 million euros.

Investments, at 559 million euros, represented 3.8% of sales.

Operating cash flow amounted to 1,932 million euros, an increase of +23.2%.

After payment of the dividend, the residual cash flow came out at -248 million euros.

At 30 June 2019, after taking into account finance lease liabilities for 2,151 million euros, net cash amounted to 200 million euros, compared with 362 million euros at 30 June 2018.

"This news release does not constitute an offer to sell, or a solicitation of an offer to buy L'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers, also available in English on our Internet site www.loreal-finance.com.
This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."

This a free translation into English of the 2019 Half-Year results news release issued in the French language and is provided solely for the convenience of English-speaking readers. In case of discrepancy, the French version prevails.


Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel.: +33 1 47 56 83 02
[email protected] 

Financial analysts and institutional investors 
Ms Françoise LAUVIN
Tel.: +33 1 47 56 86 82
[email protected] 
Tel.: +33 1 47 56 76 71
[email protected]

Tel.: +33 1 47 56 70 00

For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers, and the Internet site for shareholders and investors, www.loreal-finance.com, or the L'Oréal Finance app, alternatively, call +33 1 40 14 80 50.



  2018 2019
First quarter  6,778.6  7,550.5
Second quarter  6,612.1  7,261.0
First half total  13,390.7  14,811.5
Third quarter  6,473.3  
Nine months total  19,864.0  
Fourth quarter  7,073.4  
Full year total 26,937.4  


Other appendices can be found in the PDF version.

[1] Like-for-like: based on a comparable structure and identical exchange rates.
[2] The increase came out at 11.3 % excluding the impact of IFRS 16.
[3] Sales achieved on our brands' websites + estimated sales achieved by our brands corresponding to sales through our retailers' websites (non-audited data).
[4] Diluted net profit per share, excluding non-recurring items, after non-controlling interests.
[5] The L'Oréal Registration Document filed with the AMF (Autorité des Marchés Financiers) on 14 March 2019 includes, on pages 370 and 371, the other pieces of information that must appear in the share buyback programme description pursuant to Article 241-2 of the General Regulation of the AMF.
[6] The Group has applied the IAS 29 accounting rule (Financial Reporting in Hyperinflationary Economies) to Argentina from 1 July 2018 onwards. The negative impact of this adjustment amounts to 420 basis points on like-for-like growth in Latin America and to 30 basis points on the growth of the whole L'Oréal group in the first half of 2019.
[7] Non-allocated expenses = Central Group expenses, fundamental research expenses, stock options and free grant of shares expenses and miscellaneous items. As a % of total Divisions sales.
[8] Net profit excluding non-recurring items, after non-controlling interests, does not include capital gains and losses on disposals of long-term assets, impairment of assets, restructuring costs, tax effects and non-controlling interests.
[9] Diluted net profit per share, excluding non-recurring items, after non-controlling interests.