THE FACT THAT? L’Oréal reported its 2025 annual results, generating comparable sales growth and higher profitability, while confirming acceleration towards 2026 and outlining upcoming changes to the board of directors.
THE DETAILS Sales reached €44.05 billion, representing comparable growth of +4.0% and reported growth of +1.3%, with momentum accelerating in the second half across all divisions and regions. E-commerce registered double-digit growth and exceeded 30% of total sales, reinforcing the strength of the Group’s omnichannel model. Professional Products led divisional performance with comparable growth of +7.5%, supported by strong contributions from Dermatological Beauty, Consumer Products and Luxury.
Profitability improved throughout the year, with gross margin increasing to 74.3% (+10 basis points) and operating margin increasing to 20.2% (+20 basis points). Operating profit reached 8,890 million euros, +2.4% year-on-year. Earnings per share stood at 12.71 euros (+0.4%), while the proposed dividend stood at 7.20 euros per share (+2.9%). Net cash flow increased to €7.2 billion, +7.8%.
Strategically, the Group continued to advance its AI and IT transformation, while increasing M&A activity, particularly through Kering Beauté and increasing its stake in Galderma to 20%. Regarding governance, the Board proposed the renewals of Jean-Paul Agon and Patrice Caine, with the departure of Paul Bulcke and Béatrice Guillaume-Grabisch, and the appointment of new directors, 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 monetary and tariff pressures, and strengthen its long-term growth platform through innovation, investment in Beauty Tech and targeted acquisitions, supporting confidence in further acceleration in 2026.
Fountain: L’Oréal
