THE WHAT? L’Oréal reported its 2025 annual results, delivering like-for-like sales growth and improved profitability, while confirming acceleration into 2026 and outlining upcoming Board changes.

THE DETAILS Sales reached €44.05 billion, representing +4.0% like-for-like growth and +1.3% reported growth, with momentum accelerating in the second half across all divisions and regions. E-commerce delivered double-digit growth and surpassed 30% of total sales, reinforcing the strength of the Group’s omnichannel model. Professional Products led divisional performance with +7.5% like-for-like growth, supported by solid contributions from Dermatological Beauty, Consumer Products and Luxe.

Profitability improved over the year, with gross margin rising to 74.3% (+10 basis points) and operating margin increasing to 20.2% (+20 basis points). Operating profit reached €8.89 billion, up +2.4% year on year. Earnings per share came in at €12.71 (+0.4%), while the proposed dividend stands at €7.20 per share (+2.9%). Net cash flow increased to €7.2 billion, up +7.8%.

Strategically, the Group continued advancing its AI and IT transformation while stepping up M&A activity, notably through Kering Beauté and increasing its stake in Galderma to 20%. On governance, the Board proposed the renewals of Jean-Paul Agon and Patrice Caine, with Paul Bulcke and Béatrice Guillaume-Grabisch set to depart, and new director nominations including Pablo Isla, Anna Lenz and Christel Bories.

THE WHY? The results reinforce L’Oréal’s ability to outperform a gradually improving beauty market, expand margins despite currency and tariff pressures, and strengthen its long-term growth platform through innovation, Beauty Tech investment and targeted acquisitions—supporting confidence in further acceleration in 2026.

Source: L’Oreal