GENERAL DISCUSSION: YOUR QUESTIONS, OUR ANSWERS
During the Annual General Meeting, shareholders had the opportunity to take the floor and ask questions. Read a summary of some of the topics discussed between L’Oréal and its shareholders.
What is the impact of the situation in the Middle East on the Group’s business and supply chain?
The safety of our 1,500 employees in the region remains our top priority. In terms of operations, the impact is under control: L’Oréal has no production facilities located in conflict zones, just one factory in Egypt which is operating without disruption. L’Oréal’s multipolar model has allowed it to partly offset any impact on first quarter 2026 sales.
Should the conflict persist, other impacts on logistics and raw material costs could affect the second half of the year. However, the Group’s management teams are showing great agility in absorbing these extra costs and meeting targets.
What are the future impacts of artificial intelligence on productivity and employment at L’Oréal ?
At L’Oréal, we view AI as an “augmentation” of humans. The goal is not to replace our employees, but to free them from repetitive tasks such as basic data compilation and analysis. These productivity gains allow our teams to focus on creation, invention and research. By leveraging our marketing and content creation capabilities, AI is becoming an accelerator of growth and a strategic lever for strengthening our position as a future-driven company.
What are the details of the acquisition of Kering’s beauty division and what is its expected contribution?
This strategic acquisition cements a long-term partnership and confirms L’Oréal Luxe’s global leadership. We immediately acquire 50-year licences for Balenciaga and Bottega Veneta. Eventually, we will also acquire the prestigious Gucci licence with the aim of replicating the success achieved with Yves Saint Laurent. Finally, the acquisition of the Creed brand positions us as a leader in the “ultra high-end perfumery” segment, a booming market that offers us significant growth potential.
Following the acquisition of Korean brand Dr.G, where does L’Oréal stand in the K-beauty market and in the face of local competition in Asia?
Following the 2024 acquisition of Dr.G, Korea’s No. 1 skincare brand, L’Oréal is surfing the crest of the K-beauty wave by rolling out the brand at global level. More broadly, while local brands are growing in Asia, they are doing so largely at the expense of other Asian players. L’Oréal continues to gain market share in China, driven by the power of our international brands such as Lancôme, Helena Rubinstein, CeraVe and La Roche-Posay.