The letter to shareholders - N°91 Spring/Summer 2026

“Ladies and Gentlemen, dear Shareholders,

2025 was a decisive year for L’Oréal: we achieved solid results and consolidated our position as the world’s No. 1 beauty company while profoundly transforming the Group against a challenging geopolitical backdrop.

L’Oréal achieved another year of growth with sales up 4% like-for-like, outperforming the global beauty market which posted growth of around 3.5%. 2025 sales were marked by constant quarter-on-quarter growth, a trend that has continued into the first quarter of 2026.

Economic performance and corporate social responsibility are closely intertwined and form the backbone of our strategy of sustainable value creation. In 2025, we reached a historic milestone by achieving 100% renewable energy across all of our operated sites and stores.

2025 was a major year for acquisitions marked by the integration of the Korean brand Dr.G, followed by Medik8 and Color Wow. We also signed the Jacquemus licence and, most notably, acquired Kering Beauté, which allows us to operate the licences for Bottega Veneta, Balenciaga and eventually, Gucci, while strengthening our presence in haute perfumery with the Creed brand.

2025 was also a record year for scientific research in which Fortune magazine recognised L’Oréal as the ‘Most Innovative Company in Europe’ across all sectors. This recognition reflects the excellence of our 4,000 researchers and the 725 patents filed in 2025 – the biggest number in L’Oréal’s history.

Finally, 2025 was a record year for technology and IT investments, which totalled more than €1.5 billion. All of these investments formed part of the ‘ONE L’Oréal’ agenda, the catalyst of which will be our mastery of artificial intelligence. This initiative aims to integrate AI at all levels of the Company, from consumer engagement to all business functions, while driving employees’ professional development and creating value for our shareholders.

In this context, L’Oréal has all the assets to win: the scale of a major international group combined with the agility of a start-up, the legacy of our founder’s entrepreneurial spirit. Today, I am convinced that L’Oréal is stronger than ever and ideally positioned to sustainably accelerate its growth.

The beauty market is stimulated by a number of long-term, structural trends that serve as future growth drivers for L’Oréal. First, the number of consumers is constantly increasing, driven by the rise of the middle classes in emerging markets and longer life expectancy in mature markets. Meanwhile, beauty routines and protocols are becoming increasingly sophisticated, creating new premiumisation opportunities in haircare and body care and through the rise of haute perfumery.

We are also witnessing the emergence of new regional centres of influence. We have lost no time in capitalising on these trends, for example through the acquisition of K-beauty brands Dr.G and 3CE and by taking minority stakes in Amouage and To Summer. Finally, the obsession with longevity and ‘aging well’ is fundamentally redefining the consumer journey. We are proactively pursuing this trend through our advanced research programmes and the upcoming joint venture with Kering focused on wellness, while we continue to explore the aesthetics world by recently increasing our stake in Galderma to 20%.

One thing remains constant in this ever-shifting world: the essential role of beauty for humanity. Far from paralysing us, the challenges of a changing world have stimulated L’Oréal’s ability to reinvent itself in order to pursue its mission: Create the beauty that moves the world.”