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Earnings Calls

Last Earnings Call

Fiscal Period
Q2 2026
Call Date
Jul 30, 2026
AI Summary
Q2 2026

Strong first half: L'Oreal said adjusted like-for-like growth was 6.5%, with sales up 5.8% and momentum similar in both quarters despite tougher comparisons in Q2.

Margins and cash: Gross margin reached 74.8%, operating margin hit a first-half record of 21.3%, and operating net cash flow rose 13.9% to more than EUR 3 billion.

Broad-based growth: Every division and every region grew, led by Professional Products, Dermatological Beauty, Europe, North America, and a very strong SAPMENA region.

China recovery: Management said China stabilized around 2% market growth, with premium segments improving and L'Oreal gaining share, especially in luxury and dermatological beauty.

Investment stance: The company increased A&P to support innovation and new brands, while SG&A fell in relative terms; management said it stayed selective and opportunistic with spending.

Outlook intact: Management said July started well and they remain confident for the second half, expecting the global beauty market to grow between 4.5% and 5% and L'Oreal to keep outperforming.

M&A and AI: The group defended recent acquisitions and said AI is already helping innovation, content creation, and consumer engagement, while also strengthening its digital moat.

Key Financials
Adjusted like-for-like growth
6.5%
Sales
5.8%
Foreign exchange impact on sales
-2.8%
Like-for-like growth excluding IT transformation
6.5%
Gross margin
74.8%
Operating margin
21.3%
Operating profit
EUR 5 billion
Operating net cash flow
more than EUR 3 billion
Gross cash flow
EUR 4.8 billion
Capital expenditures
EUR 760 million
Earnings per share
EUR 7.40
Net profit attributable to owners
EUR 3.5 billion
Net debt
EUR 12.7 billion
Financial leverage
1.2x
North America growth
6.7%
Europe growth
6.1%
North Asia growth
4.6%
SAPMENA-SSA growth
13.8%
Latin America growth
5.2%
Professional Products growth
11.6%
Consumer Products growth
4.3%
Luxe growth
5.1%
Dermatological Beauty growth
10.6%
E-commerce sales
EUR 7.4 billion
E-commerce share increase
over 200 basis points
Working capital
EUR 962 million
Tax rate
24.5%
Financial expenses
around EUR 400 million
Global beauty market growth
around 4.5% in the first half
China market growth
around 2%
Market influence share
approximately 29%
Sun care growth
about 10%

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