Half Year 2026 L'Oreal SA Earnings Call Transcript
Key Points
- L'Oreal SA (LRLCF) delivered an excellent first half with adjusted like-for-like growth of 6.5%, accelerating from previous semesters.
- The company achieved a record operating margin of 21.3%, up 20 basis points, driven by strong gross margin and cost control.
- E-commerce grew 18%, nearly twice as fast as the market, reaching EUR7.4 billion in sales and gaining over 200 basis points in group weight.
- Dermatological Beauty delivered a third consecutive quarter of double-digit growth at 10.6%, with strong contributions from CeraVe and La Roche-Posay.
- The company is confident in the second-half outlook, with a strong innovation pipeline, skincare comeback, and expected recovery in North Asia and Travel Retail.
- Foreign exchange had a negative 2.8% impact on sales due to euro appreciation against key currencies.
- The Luxe division's operating margin declined 20 basis points to 22.1%, partly due to the dilutive impact of consolidating Kering Beauty.
- Makeup growth was penalized by service levels in the Americas, growing only 2.5%.
- The IT transformation caused a slight adjustment to like-for-like growth, reducing it from 6.8% to 6.5%.
- Non-recurring items amounted to a negative EUR430 million, including restructuring costs and product liability lawsuits.
Welcome to the L'Oreal 2026 Half-Year Financial Webcast. The conference is about to begin. I now hand over to Eva Quiroga. Ms. Quiroga, please go ahead.
'--
Thank you very much, Eugenia, and good morning to all, and thank you for joining us for the presentation of our first half 2025 results.
I'm here with our CEO, Nicolas Imponimus.
Our CFO, Christophe Rabul, and our Head of Corporate Finance and Financial Communications, Laurent Schmidt.
As always, Christophe will comment the first half results.
Nicolas will then share his key highlights from the first six months and tell you why we remain confident in the outlook for the rest of this year and beyond. After that, we'll open for Q&A. You can find the slides of both presentations on our website already.
You will be able to access the replay of this call later today, and the half-year report will be available at the beginning of next week. With that, over to you,
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