L'Oreal SA (CHIX:ORp)
€ 373.35 +5.7 (+1.55%) Market Cap: 199.83 Bil Enterprise Value: 204.25 Bil PE Ratio: 30.86 PB Ratio: 5.95 GF Score: 92/100

Full Year 2024 L'Oreal SA Earnings Call Transcript

Feb 07, 2025 / 08:00AM GMT
Release Date Price: €338.4 (-5.55%)

Key Points

Positve
  • L'Oreal SA (LRLCF) achieved a record year in 2024 with like-for-like growth of 5.1%, outperforming the market.
  • The company's gross margin reached an all-time high of 74.2%, and the operating profit margin increased to 20% for the first time.
  • L'Oreal SA (LRLCF) reported a strong cash flow with operating net cash flow at EUR6.6 billion, up nearly 9%, indicating a cash conversion of over 100%.
  • The Dermatological Beauty Division reported a 9.8% increase in sales, reaching EUR7 billion for the first time, with a profit margin of 26.1%.
  • The Professional Products Division grew by 5.3%, driven by premium haircare and a successful omnichannel strategy, achieving a market share of 26%.
Negative
  • Sales in North Asia declined by 3.2% on a like-for-like basis, primarily due to weakness in Mainland China and Travel Retail.
  • The Chinese beauty market continued to decelerate, with total market growth deteriorating from minus 2% in the first half to minus 4% for the full year.
  • The Travel Retail business in Asia faced challenges, with sales in Hainan and Korea down 35% from 2022 levels.
  • CeraVe experienced a slowdown in the US, partly due to the law of big numbers, despite being the second biggest brand in the US.
  • The Consumer Products Division's growth of 5.4% was slightly below the market, impacted by a slower market in China and a soft makeup market in the US.
Nicolas Hieronimus;Oreal SA;Chief Executive Officer
L;Member of the Executive Committee, Director

'- -

So good morning again, and welcome to this 2024 annual results presentation. Christophe Babule, our CFO, will kick off with a presentation of the 2024 financial statements, then each head of division will summarize the 2024 key points for his or her division as well as the prospects for 2025.

So we'll start with Myriam Cohen-Welgryn, President of the Dermatological Beauty Division; then Omar Hajeri, President of the Professional Division; Cyril Chapuy, President of L'Oreal Luxe; and Alexis Perakis-Valat, President of the Consumer Products Division, and I will conclude this first part of the meeting, share with you my key takeaways for 2024, my thoughts on 2025, and how we'll continue to expand our beauty conquest. Then we will, of course, move to the Q&A session, which we expect to last around 40 minutes.

And finally, I draw your attention to the disclaimer that's now on that screen. So I give you a little bit of time to read it. And then we

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