Financial performance

2023 was another spectacular year: L’Oréal once again outperformed a dynamic global beauty market and strengthened its position as the world’s No.1 beauty company, thanks to the power of its multipolar model, the desirability of its brands, and the creativity and commitment of its teams around the world. Achieving its best growth in 20 years (excluding the post-Covid rebound in 2021), the Group broke the €40-billion sales barrier for the first time and posted record results.

Sales

  • €41.18 Bn sales in 2023
  • +11.0% like-for-like growth
  • +7.6% reported growth

Breakdown of 2023 sales

Global brands
L’Oréal around the world
CEO Interview

Divisions

36.8% Consumer Products
36.2% Luxe
15.6% Dermatological Beauty
11.3% Professional Products
Global brands

Regions

31.6% Europe
27.1% North America
25.9% North Asia
8.4% SAPMENA – SSA
7.1% Latin America
L’Oréal around the world

Categories

39.9% Skincare and sun protection
19.7% Makeup
15.3% Haircare
12.6% Fragrances
8.3% Hair colouring
4.1% Other
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E-commerce continued to grow

  • €11.2 Bn sales in e-commerce
  • 27% of consolidated sales
  • +9.5% growth in e-commerce sales

Consolidated sales grew by 11%

(in billions of euros)

Year Value
2014 22.53
2015 25.26
2016 25.84
2017 26.02
2018 26.94
2019 29.87
2020 27.99
2021 32.28
2022 38.26
2023 41.18

2023 Profits

€8.14 Bn operating profit

Increase in operating profit: +9.2%

(in millions of euros)

Year Value
2014 3,891
2015 4,388
2016 4,540
2017 4,676
2018 4,922
2019 5,547
2020 5,209
2021 6,160
2022 7,456
2023 8,143

Further improvement in operating margin
to 19.8% of sales

(in %)

Year Value
2019 18.6
2020 18.6
2021 19.1
2022 19.5
2023 19.8

Net profit grew by +7.1%, excluding non-recurring items after non-controlling interests

(in millions of euros)

Year Value
2014 3,125
2015 3,490
2016 3,647
2017 3,749
2018 3,988
2019 4,356
2020 4,099
2021 4,938
2022 6,054
2023 6,486

Earnings per share increased by +7.3%

(in euros)

Year Value
2014 5.34
2015 6.18
2016 6.46
2017 6.65
2018 7.08
2019 7.74
2020 7.30
2021 8.82
2022 11.26
2023 12.08

Operating profitability above 20% in our 4 Divisions

(as a % of Division sales)

Divisions Value
Professional Products 21.6%
Consumer Products 20.5%
Luxe 22.3%
Dermatological Beauty 26.0%
22.2% Total for Divisions, before non-allocated

A solid financial situation at 31 December 2023

€4,404 m net debt
  • AA Standard & Poor’s (September 2023)
    Long-term ratings
  • A1+ Standard & Poor’s (September 2023)
    Short-term ratings
  • Aa1 Moody’s (March 2022)
    Long-term ratings
  • Prime-1 Moody’s (March 2022)
    Short-term ratings

Bonds

  • €3 billion In 2022, L’Oréal’s inaugural public bond offering including a sustainability linked tranche
  • €2 billion In May 2023, L’Oréal successfully completed a bond issue under the EMTN programme used for general corporate purposes including the acquisition of Aesop.
  • €1.5 billion In November 2023, L’Oréal issued a new bond under the EMTN programme to refinance bond maturities in 2024.

Capital expenditure
3.6% of sales

A dynamic shareholder return policy

Continued dividend growth: +10%

Year Dividend Preferential dividend +10%
2023 6.60 7.26
2022 6.00 6.60
2021 4.80 5.28
2020 4.00 4.40
2019 3.85 4.23
2018 3.85 4.23
2017 3.55 3.90
2016 3.30 3.63
2015 3.10 3.41
2014 2.70 2.97

L’Oréal rewards the loyalty of its shareholders:

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Loyalty bonus of +10% for shareholders holding registered shares

Pay-out ratio: 54.6% of profits

(as % of profit)

Year Value
2014 50.6 %
2015 50.2 %
2016 51.1 %
2017 53.4 %
2018 54.4 %
2019 49.7 %
2020 54.8 %
2021 54.4 %
2022 53.3 %
2023 54.6 %
  • €450.65 share price at 31 December 2023
  • €241 Bn market capitalisation

Over 5 years, the L’Oréal share has outperformed the CAC 40

L’Oréal vs CAC 40 from 31 December 2018 to 31 December 2023

Month/Year CAC 40
in points 		L'Oréal share price
in €
12/2018 196.55 201.20
28/06/2019 230.13 250.50
31/12/2019 248.37 264.00
30/06/2020 205.08 285.70
31/12/2020 230.65 310.80
30/06/2021 270.38 375.80
31/12/2021 297.19 416.95
30/06/2022 246.08 329.30
30/12/2022 268.97 333.60
30/06/2023 307.45 427.10
29/12/2023 313.40 +59.4% 450.65 +123.9%

Total shareholder return

Amongst the various economic and financial measures of value creation, L’Oréal prefers Total Shareholder Return (TSR). This indicator is based on a range of criteria, including the share price and revenue received in the form of dividends excluding taxes on capital gains and dividends.

10 year return

Total Shareholder Return for around €15,000 invested in L’Oréal shares, including reinvestment of dividends, excluding bank charges and tax.

Year Capital invested € Number of shares
2013 15,068 118 shares
2023
Value at 31/12/2023 		64,443 (x4)
(+15.3% growth per year) 		143 shares

Total annual return

Based on the share price of 31 December 2023

  • +19.0% over 5 years
  • +15.3% over 10 years
  • +12.1% over 20 years

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