2024 universal registration document

1.4.1.5 L’Oréal’s investment policy responds to long-term objectives

L’Oréal is a growing manufacturing company thanks largely to two types of investments:

• scientific and manufacturing investments, which are described in several sections (see 1.3.4 and 1.3.5); and
• marketing investments, which are made on an ongoing basis and are inherent to the Group’s activities in the cosmetics industry. Indeed, winning new market share requires in- depth and situation-specific studies, as well as advertising and promotional expenses attuned not only to the familiarity of brands and their competitive position, but also to constant changes in consumers’ aspirations - something that the subsidiaries’ sales and marketing teams monitor constantly. Lastly, investments in point-of sale (POS) advertising materials ensure optimal presence for our brands in points of sale.

For reasons relating to strategy and competition, L’Oréal cannot therefore provide any systematic information on future investments.

In 2024, the Group’s investments totalled €1,642 million, or 3.8% of its net sales. This level reflects the Group’s constant efforts to improve manufacturing efficiency, research and digital development performance and enhance brand value.

Investment commitments in 2024 can be broken down as follows: production and the physical supply chain represented approximately 22% of total investments; marketing investments, including moulds, point-of-sale advertising materials and stores accounted for 38%; IT investments spread over all these categories represented 23% of total investments; research and the head offices in the different countries accounted for the remainder⁽¹⁾. Despite their strategic nature, none of these investments taken individually is material enough at Group level to warrant more detailed disclosure.