- L’Oreal’s fourth-quarter like-for-like sales growth was 2.5%, missing the estimate of 3.83%.
- Professional products sales increased by 3.8%, below the 5.11% forecast.
- Consumer products performed better than expected with a growth of 2.7%, versus the estimate of 2.38%.
- L’Oreal Luxe sales rose by just 1%, missing the significant growth estimate of 4.79%.
- Dermatological beauty noted a strong 5% increase, exceeding the expected 3.45% growth.
- North America’s sales rose by 1.4%, not meeting the 4.65% estimate, while North Asia saw a decline of 3.6%, which was better than the forecasted drop of 5.21%.
- European sales slightly surpassed expectations with a 5.2% increase compared to an estimate of 5.15%.
- The South Asia Pacific, Middle East, North Africa, and Sub-Saharan Africa regions saw an 11.4% sales increase, falling short of the 12.1% expected growth.
- Latin America sales grew 7.5%, under the projected 13.8%.
- Total sales reached €11.08 billion, up 4.5% year-over-year, surpassing the estimate of €10.91 billion.
- Operating profit for the year was €8.69 billion, up 6.7% from the previous year, and slightly above the estimated €8.65 billion.
- Operating margin improved to 20%, ahead of last year’s 19.8% and the estimate of 19.9%.
- Net income stood at €6.41 billion, a 3.6% increase year-over-year but below the estimate of €6.45 billion.
- Adjusted earnings per share (EPS) improved to €12.66 from €12.08 in the previous year, exceeding the estimate of €12.23.
- The dividend per share was set at €7, above the expected €6.81.
- Like-for-like sales for the year grew 5.1%, slightly below the 5.47% estimate.
- Negative currency fluctuations had a 1.2% impact, better than the expected -2.17%.
- Changes in the scope of consolidation contributed positively with a 1.7% impact, ahead of the 1.45% estimate.
- CEO Nicolas Hieronimus remains optimistic about the global beauty market outlook, predicting accelerated growth in sales and profit.
- Françoise Bettencourt Meyers will not renew her tenure as Director after 28 years, wanting to propose Téthys, the family-owned holding company, to join the Board.
- The Board of Directors plans to propose Téthys’ appointment as a Director for a four-year term at the Annual General Meeting.
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A look at L’Oreal SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, L’Oreal SA has a positive long-term outlook. With a Growth score of 4 and Resilience score of 4, the company is positioned well for future expansion and able to withstand market challenges effectively. Additionally, L’Oreal SA scores a Dividend score of 3, indicating a moderate but stable dividend payout to investors. While the company’s Value and Momentum scores are lower at 2 and 3 respectively, its strengths in growth and resilience bode well for its overall performance in the long run.
L’Oreal SA, a leading player in the health and beauty industry, manufactures and distributes a wide range of products including colorants, hair care products, cosmetics, skin care products, perfumes, and dermatological products. With a focus on innovation and consumer preferences, the company caters to both professional hairdressers and individual consumers worldwide, including luxury cosmetic products sold through various channels. With a solid foundation in product diversification and market presence, L’Oreal SA‘s future prospects seem promising.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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