Despite challenges, L’Oreal remains confident in outperforming the market

  • L’Oreal’s sales for 2023 were EUR41.18 billion, up 7.6% in reported terms and 11% on a like-for-like basis
  • Sales in Europe climbed 13.7% to EUR13.01 billion
  • Revenue in North America increased 9.7% to EUR11.15 billion
  • Sales in Latin America jumped 22.8% to EUR2.92 billion
  • Revenue in North Asia slumped 5.8% to EUR10.66 billion due to market softness in mainland China
  • L’Oreal’s annual net profit increased 8.4% to EUR6.18 billion
  • Operating profit grew 9.2% to EUR8.14 billion
  • L’Oreal plans to propose a dividend of EUR6.60 per share at its annual general meeting
  • Chief Executive Nicolas Hieronimus is optimistic about the outlook for the beauty market in 2024

L’Oreal reported sales of EUR41.18 billion for 2023, a 7.6% increase in reported terms and 11% on a like-for-like basis. Sales in Europe saw a significant climb of 13.7% to EUR13.01 billion, while revenue in North America increased by 9.7% to EUR11.15 billion. Latin America experienced a substantial jump in sales, with a growth of 22.8% to EUR2.92 billion. However, revenue in North Asia, particularly in mainland China, slumped by 5.8% to EUR10.66 billion due to market softness. Despite these challenges, L’Oreal’s annual net profit increased by 8.4% to EUR6.18 billion, and operating profit grew by 9.2% to EUR8.14 billion. The company plans to propose a dividend of EUR6.60 per share at its annual general meeting. Chief Executive Nicolas Hieronimus expressed optimism about the outlook for the beauty market in 2024, stating confidence in L’Oreal’s ability to outperform the market and achieve another year of growth in sales and profits.

Public Companies: L’Oreal (N/A)
Private Companies:
Key People: Nicolas Hieronimus (Chief Executive)

Factuality Level: 8
Justification: The article provides specific sales and profit figures for L’Oreal for 2023, along with regional breakdowns. It also includes a statement from the company’s CEO regarding their outlook for the future. The information is based on reported data and consensus estimates by Visible Alpha. However, the article does not provide any analysis or context for the sales and profit figures, and it does not include any independent perspectives or opinions.

Noise Level: 7
Justification: The article provides information on L’Oreal’s sales and profits for 2023, but it lacks analysis or insights into the reasons behind the performance. It mentions geopolitical tensions, inflation, and a stagnating beauty market in China as factors, but does not explore them in depth. The article also lacks evidence or data to support the claim that L’Oreal will outperform the market in the current year. Overall, the article provides basic information but lacks depth and analysis.

Financial Relevance: Yes
Financial Markets Impacted: L’Oreal

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses L’Oreal’s sales and profits for 2023. It mentions geopolitical tensions, inflation, and a stagnating beauty market in China as factors affecting L’Oreal’s performance. However, there is no mention of an extreme event.

Reported publicly: www.marketwatch.com