REPORT
INVESTIR DAY: MEETING INVESTORS
As an official partner of Investir Day, L’Oréal was actively involved in the exhibition for individual investors held on 29 November at the Carrousel du Louvre in Paris. Dive into the day’s proceedings with contributions from Group experts who enlivened the event.
We have built the strongest and most diverse brand portfolio in the global beauty industry.
CHRISTOPHE BABULE,
Chief Financial Officer, L’Oréal
Three questions to Christophe Babule at Investir Day:
What are the prospects for the beauty market in general and L’Oréal’s assets in particular?
L’Oréal is a unique company in a unique market: the beauty market - a vast, dynamic market, driven by a growing demographic and an expanding middle class in pursuit of premiumisation(1) The global context calls for caution in the short term but we are very confident in the long term, given the strength of our innovations, our digital leadership and consumers’ appetite for beauty. The middle and upper classes continue to grow and experts estimate they will grow by a further billion worldwide by 2030.
Despite inflation, the beauty industry remains dynamic and the market buoyant, with strong growth in fragrance and makeup in particular, the easing of public health measures and the return of social life.
In order to build on its position as the global beauty leader, L’Oréal is transforming itself and constantly adapting, boosted by its strategically concentrated yet operationally decentralised organisation. Our balanced growth model is based on powerful drivers in the form of our four Divisions, five Zones and the categories in which we operate.
Our ability to valorise our offer through innovation while controlling costs, absorbing the impact of rising raw materials prices and relieving the pressure on the supply chain is a real asset. And we will continue to invest effectively in our brands, to make them more desirable. Our Group developed initially through organic growth, then, thanks to targeted acquisitions, we expanded our brand portfolio to meet the full range of beauty aspirations of people around the world. In this way, we have built the strongest and most diverse portfolio in the global beauty industry, which now comprises 80 complementary brands, including 35 global brands; eight of them have already generated more than a billion euros.
How do you reconcile growth with social and environmental responsibility?
It’s no longer a question of “reconciling” but of changing “mindset”. Because you can’t have one without the other. Nowadays, you can only grow responsibly and sustainably, otherwise you will eventually disappear. This approach absolutely affects the whole life of the company: from the way we manage sourcing and production, through our contribution to restoring damaged natural ecosystems, to sharing value and supporting vulnerable communities. Our commitments are measured and audited, and recognised by independent external experts such as the CDP(2), S&P Global Ratings and UN Global Compact LEAD. And, of course, we play our part in France’s drive to reduce energy consumption by 10%. Our L’Oréal for the Future programme goes further, to ensure we grow our business within the boundaries of the planet’s resources and combine financial value with environmental & social value.
What role do individual shareholders play at L’Oréal?
Shareholder stability is one of L’Oréal’s assets. L’Oréal’s shareholding structure include 208,000 individual shareholders, accounting for 4.62% of the capital at the end of 2021. We have introduced a dynamic shareholder policy, paying regular dividends and offering a +10% loyalty bonus to shareholders who have held registered shares for two years(3).
Also, 1.6% of our shareholders are employees. To continue closely involving L’Oréal employees in France and around the world in the Group’s development, in May 2022, we launched our third Employee Share Ownership Plan, rolled out in more than 60 countries. The success of this operation demonstrates the strong commitment of our employees worldwide, their attachment to L’Oréal’s values and their confidence in our Group’s performance and prospects.
