L’Oréal has a bright future, as our results prove.
of L’Oréal
From 26 to 28 June, L’Oréal took part in BoursoLive, the online conference for individual investors.
This third edition was aimed particularly at young working people keen to deepen their knowledge for smarter investing. Christophe Babule, L’Oréal’s Chief Financial Officer, talked about the Group’s value creation strategy and answered questions from Boursorama’s Media Director, Laurent Grassin.
L’Oréal is the beauty market leader. What are your strengths?
L’Oréal is the No.1 in beauty worldwide, with 87,400 employees and almost seven billion products sold around the globe in 2022. It’s important to understand the balanced way that different entities contribute to the Group’s growth: we are growing in all our Divisions and all Regions, as well as in volume, value and value mix.
At L’Oréal, financial and non-financial performance go hand in hand and all our employees are committed to achieving our highly ambitious sustainability objectives.
This model enables the Group to create value for our stakeholders, particularly our shareholders. A significant increase in net profit in 2022 has enabled us to pay a 25% higher dividend this year.
The total shareholder return(1) over 10 years is +14.5% (at 16/06/2023), which proves that our growth is both sustainable and profitable.
Why invest in L’Oréal?
Investing in L’Oréal is an opportunity to share in the growth of a French champion, and we are very proud of that. France remains the Group’s third-biggest market, in which we have a very strong industrial, commercial and research-based footprint: 15,000 employees (17% of the workforce); 11 manufacturing plants, representing 26% of our global production, which all contribute to the Group’s growth; and 8 research centres, where nearly two-thirds of our researchers work.
Also, the beauty market is constantly growing: for the past 20 years it has been growing at an average of 4% to 5% per year. L’Oréal is indeed the global beauty leader and will continue to grow thanks to the world’s rising middle class. In addition, the Group has demonstrated its ability to outperform the market, particularly during periods of crisis when it has emerged stronger.
L’Oréal has a bright future, as our results prove. We are ready for tomorrow, to shape the future of beauty.
(1) Total Shareholder Return of the investment, assuming that the shares are sold at the closing price on 16 June 2023.
