| 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|
| € millions | % sales | € millions | % sales | € millions | % sales | |
| Sales | 38,260.6 | 100.0% | 41,182.5 | 100.0% | 43,486.8 | 100.0% |
| Cost of sales | (10,577.4) | 27.6% | (10,767.0) | 26.1% | (11,227.0) | 25.8% |
| Gross profit | 27,683.3 | 72.4% | 30,415.5 | 73.9% | 32,259.8 | 74.2% |
| R&I expenses | (1,138.6) | 3.0% | (1,288.9) | 3.1% | (1,354.7) | 3.1% |
| Advertising and promotion | (12,059.0) | 31.5% | (13,356.6) | 32.4% | (14,008.9) | 32.2% |
| Selling, general and administrative expenses | (7,028.8) | 18.4% | (7,626.7) | 18.5% | (8,208.7) | 18.9% |
| OPERATING PROFIT | 7,456.9 | 19.5% | 8,143.3 | 19.8% | 8,687.5 | 20.0% |
Gross profit amounted to €32,260 million, up +6% compared to the previous year; as a percentage of sales, it stood at 74.2% of sales. This is an increase of +30 basis points year- on-year and +50 basis points on a comparable basis (corrected for conversion and changes in scope). The impact from FX was negative at -30 basis points but was more than offset by a strong contribution from price effects (+60 basis points) as well as positive mix effects (+10 basis points) and cost efficiencies (+10 basis points).
Research & Innovation expenses totalled €1,355 million, an increase of +5% year-on-year; as a percentage of sales, they remained broadly stable at 3.1%, in line with the long-term trend.
Advertising and promotional expenses amounted to €14,009 million, up +5% from the previous year; as a percentage of sales, they stood at 32.2%, -20 basis points below prior year levels, but up +10 basis points on a comparable basis. L’Oréal continues to invest behind its brands by increasing investments behind both consumer engagement and shopper experience.
Selling, general and administrative expenses totalled €8,209 million, an increase of +8% year-on-year; as a percentage of sales, they increased +40 basis points to 18.9% but were stable on a comparable basis, reflecting efficient cost management, including reorganization and restructuring measures in several regions.
Overall, operating profit increased by +6.7% to €8,687.5 million, and amounted to 20% of sales, an improvement of +20 basis points. Operating margins increased +40 basis points on a comparable basis. In 2024, each Division reported an operating margin in excess of 21%. Three Divisions reported record operating margins.
Consolidated profit and loss accounts: from operating profit to net profit excluding non-recurring items.
| € millions | 2022 | 2023 | 2024 | Change |
|---|---|---|---|---|
| Operating profit |
Operating profit 2022 7,456.9 |
Operating profit 2023 8,143.3 |
Operating profit 2024 8,687.52 |
Operating profit Change +6.7% |
| Financial revenues and expenses excluding Sanofi dividends |
Financial revenues and expenses excluding Sanofi dividends 2022 (73.0) |
Financial revenues and expenses excluding Sanofi dividends 2023 (113.4) |
Financial revenues and expenses excluding Sanofi dividends 2024 (261.4) |
Financial revenues and expenses excluding Sanofi dividends Change
|
| Sanofi dividends |
Sanofi dividends 2022 468.2 |
Sanofi dividends 2023 420.9 |
Sanofi dividends 2024 444.5 |
Sanofi dividends Change
|
| Profit before tax excluding non-recurring items |
Profit before tax excluding non-recurring items 2022 7,852.1 |
Profit before tax excluding non-recurring items 2023 8,450.8 |
Profit before tax excluding non-recurring items 2024 8,870.6 |
Profit before tax excluding non-recurring items Change +5.0% |
| Income tax excluding non-recurring items |
Income tax excluding non-recurring items 2022 (1,793.4) |
Income tax excluding non-recurring items 2023 (1,957.8) |
Income tax excluding non-recurring items 2024 (2,075.4) |
Income tax excluding non-recurring items Change
|
| Net profit excluding non-recurring items of equity consolidated companies |
Net profit excluding non-recurring items of equity consolidated companies 2022 +1.5 |
Net profit excluding non-recurring items of equity consolidated companies 2023 +0.2 |
Net profit excluding non-recurring items of equity consolidated companies 2024 (1.3) |
Net profit excluding non-recurring items of equity consolidated companies Change
|
| Non-controlling interests |
Non-controlling interests 2022 (6.1) |
Non-controlling interests 2023 (6.7) |
Non-controlling interests 2024 (7.6) |
Non-controlling interests Change
|
| Net profit after non-controlling interests excluding non-recurring items |
Net profit after non-controlling interests excluding non-recurring items 2022 6,054.1 |
Net profit after non-controlling interests excluding non-recurring items 2023 6,486.6 |
Net profit after non-controlling interests excluding non-recurring items 2024 6,786.3 |
Net profit after non-controlling interests excluding non-recurring items Change +4.6% |
| EPS (1) (in euros) |
EPS (1) (in euros)2022 11.26 |
EPS (1) (in euros)2023 12.08 |
EPS (1) (in euros)2024 12.66 |
EPS (1) (in euros)Change +4.8% |
| NET PROFIT AFTER NON-CONTROLLING INTERESTS |
NET PROFIT AFTER NON-CONTROLLING INTERESTS 2022 5,706.6 |
NET PROFIT AFTER NON-CONTROLLING INTERESTS 2023 6,184.0 |
NET PROFIT AFTER NON-CONTROLLING INTERESTS 2024 6,408.7 |
NET PROFIT AFTER NON-CONTROLLING INTERESTS Change +3.6% |
| Diluted earnings per share after non-controlling interests(euros) |
Diluted earnings per share after non-controlling interests (euros)2022 10.61 |
Diluted earnings per share after non-controlling interests (euros)2023 11.52 |
Diluted earnings per share after non-controlling interests (euros)2024 11.95 |
Diluted earnings per share after non-controlling interests (euros)Change
|
| Diluted average number of shares |
Diluted average number of shares 2022 537,657,548 |
Diluted average number of shares 2023 537,021,039 |
Diluted average number of shares 2024 536,078,431 |
Diluted average number of shares Change
|
(1) Diluted earnings per share, based on net profit, excluding non-recurring items, after non-controlling interests.
Net finance costs amounted to €261.4 million, compared to €113 million in 2023, at 0.6% of sales. This is an increase of +30 basis points compared to the prior year, driven by an exceptional one-off cost in Argentina (linked to the repayment of the intra-group charges) and by costs for bonds issued in 2023 (financing of the Aēsop acquisition). This item includes net finance costs of €224.7 million – comprised of €373.5 million finance costs on gross debt and €148.7 million income on cash and cash equivalents.
