L'Oréal: News release: "2021 Half-Year Results"
Clichy, 29 July 2021 at 6.00 p.m.
2021 Half-Year Results
An exceptional
first-half:+20.7%
like-for-like growth
Further increase in
profitability
- Sales:
15.19 billion euros
- +20.7% like-for-like1
- +21.8% at constant exchange rates
- +16.2% based on reported figures
- Exceptional growth
at +33.5% in the second
quarter1
- Market share gains in all
Divisions and all geographic
Zones
- Strong acceleration
in North America:
+44.7%1 in the second
quarter
- E-commerce continues to post
very strong growth at
+29.2%2
- Operating margin at
19.7%, an increase of
170 basis points
- Significant increase in
EPS3:
+21.1% at
€4.63
Commenting on these figures, Mr Nicolas Hieronimus, Chief
Executive Officer of L'Oréal, said:
“With the health situation still uncertain, the
beauty market is gradually recovering and has recorded double-digit
growth. As a result of the determination and continued commitment
of our teams, that I wish to warmly thank, L’Oréal is significantly
outperforming the market, with an exceptional second quarter. By
the end of June, the Group posted a very strong increase and
returned to its pre-Covid growth rate, up +6.6% like-for-like
compared to the first half of 2019, with an acceleration of +8.4%
in the second quarter compared to 2019.
L’Oréal recorded market share gains in all
Divisions and all geographic Zones. This remarkable performance
reflects the relevance and healthy balance of our multi-faceted
model in terms of geographic footprint, brands and categories. The
Professional Products Division has successfully transformed its
business model and achieved record performance. The Consumer
Products Division recorded double-digit growth in the second
quarter, thanks in particular to the recovery of makeup. L’Oréal
Luxe also saw a sharp rise in fragrance sales and significantly
outperformed the market. The Active Cosmetics Division achieved
record growth, demonstrating that its brand portfolio is perfectly
adapted to consumers’ health and beauty aspirations.
Our geographic Zones have now been redefined
around more homogeneous consumption areas. All achieved
double-digit growth. North Asia continued to perform well, still
driven by mainland China where L'Oréal continues to strengthen its
undisputed leadership, while North America saw a return to growth
with a tremendous acceleration in the second quarter. In Europe,
L’Oréal significantly outperformed the market, which is starting to
recover gradually; all countries in this Zone are growing, led by
the United Kingdom, France and Russia. The Group performed well in
SAPMENA-SSA4 and in Latin America, with a marked progression in
Brazil.
Our digital excellence has enabled brands to
engage, recruit and retain consumers and partners alike. E-commerce
continues to grow, at a more moderate rate due to the reopening of
retail channels, and accounts for 27.3% of sales. Benefiting from a
slight recovery in international travel and the success of Hainan,
Travel Retail has bounced back.
The first-half results increased sharply and are
of excellent quality. They are evidence of the L’Oréal virtuous
circle: a strong improvement in gross margin combined with good
cost control has enabled us to invest significantly in developing
our brands and deliver once again an increase in profitability.
At the same time, societal and environmental
engagement remains a priority. In June, we launched the very first
“L'Oréal Groupe” global campaign, to make our consumers,
shareholders and all our stakeholders aware of the actions behind
our purpose: “Create the beauty that moves the world.” We also
unveiled “L'Oréal For Youth”, a global programme designed to boost
youth employment by increasing the number of job opportunities for
under 30s by 30%.
L’Oréal has again gained strength in the early
part of the year and is well positioned to continue to grow at its
pre-crisis pace, leveraging on technology, data and Artificial
Intelligence to become the Beauty Tech company. In the second half
of 2021, we will pursue our offensive product launch strategy while
at the same time investing in relevant growth drivers to spur the
future growth and the desirability of our brands. We are more
confident than ever in our ability to outperform the market and
achieve a year of growth in both sales and results.”
2021
Half-Year
Sales
Like-for-like, i.e. based on a
comparable structure and identical exchange rates, sales of the
L’Oréal group grew by +20.7%.The net impact of changes in
the scope of consolidation was
+1.1%.Growth at constant exchange
rates came out at +21.8%.Currency
fluctuations had a negative impact of -5.6%. If the
exchange rates at 30 June 2021, i.e. €1 = $1.1871, are extrapolated
until 31 December 2021, the impact of currency fluctuations on
sales would be approximately -2.3% for the whole of
2021.Based on reported figures,
the Group’s sales at 30 June 2021 amounted to 15.19 billion euros,
i.e. an increase of +16.2%.
Sales by Division and
geographic Zone
During the first half of 2021, the Group
redefined its geographic Zones. At 30 June 2021, sales by
geographic Zone reflect this organisation and break down as
follows: Europe, North America, North Asia, SAPMENA – SSA5 and
Latin America. The data relating to previous periods have been
restated to reflect these changes.
|
2nd quarter
2021 |
1st half
2021 |
|
|
Growth |
|
Growth |
|
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
By Division |
|
|
|
|
|
|
Professional Products |
930.4 |
+65.9% |
+57.5% |
1,778.7 |
+41.0% |
+32.6% |
Consumer Products |
2,990.1 |
+14.2% |
+11.5% |
5,963.4 |
+6.3% |
+1.9% |
L’Oréal Luxe |
2,702.5 |
+45.7% |
+40.9% |
5,472.2 |
+28.1% |
+24.9% |
Active Cosmetics |
959.1 |
+48.4% |
+44.9% |
1,982.4 |
+37.5% |
+32.0% |
Group total |
7,582.1 |
+33.5% |
+29.6% |
15,196.6 |
+20.7% |
+16.2% |
By geographic
Zone |
|
|
|
|
|
|
Europe |
2,392.1 |
+27.8% |
+27.6% |
4,857.1 |
+11.9% |
+11.6% |
North America |
1,952.1 |
+44.7% |
+33.7% |
3,765.7 |
+23.2% |
+13.8% |
North Asia |
2,296.5 |
+26.5% |
+23.3% |
4,670.9 |
+27.3% |
+23.2% |
SAPMENA – SSA5 |
520.1 |
+40.7% |
+33.7% |
1,093.9 |
+19.9% |
+13.3% |
Latin America |
421.2 |
+54.8% |
+59.3% |
809.0 |
+32.8% |
+22.7% |
|
|
|
|
|
|
|
Group total |
7,582.1 |
+33.5% |
+29.6% |
15,196.6 |
+20.7% |
+16.2% |
Summary by Division
PROFESSIONAL PRODUCTS
The Professional Products Division
recorded very strong growth at
+41.0%
like-for-like and
+32.6%
reported, again strengthening its leadership in a market
which is gradually recovering from the
health crisis. The Division benefits from the three
underlying trends in the sector: the digitalisation of salons, the
development of freelance stylists, and the explosion of e-commerce.
All geographic Zones saw sales growth, with record performance in
the United States. The Division also confirmed its success in
mainland China with very strong growth in e-commerce and in salons.
It continued its growth trend in Europe, driven by Germany and
France. Haircare remains the number one category for growth,
led by a particularly dynamic Kérastase, the successful launch of
Curl Manifesto and the success of Genesis, as well as good
performance from Metal Detox by L’Oréal Professionnel and
Acidic Bonding Concentrate by Redken. In hair colour,
Shades EQ by Redken recorded strong growth.
CONSUMER PRODUCTS
The Consumer Products Division ended the
first half of the year at
+6.3%
like-for-like and
+1.9%
based on reported figures, with a rebound
of
+14.2%
in the second quarter.The Division outperformed the market
and grew in all geographic Zones, notably in mainland China,
Brazil, Indonesia and the major European countries. E-commerce
continued to grow strongly and now accounts for more than 20% of
sales.The Division achieved record market share in makeup,
especially in North America and Europe, thanks in particular to the
highly successful launches of Sky High Mascara by Maybelline New
York, Infallible powder by L’Oréal Paris and Shine Loud lipstick by
NYX Professional Makeup. Haircare saw double-digit growth thanks to
an extremely buoyant market in mainland China, as well as in Europe
and Brazil with the success of major innovations such as Full
Resist and 8 Second Wonder Water by L’Oréal Paris. Facial skincare
continued to accelerate. Revitalift Filler with hyaluronic acid by
L’Oréal Paris has become the world’s biggest-selling serum.
Mainland China’s leading skincare brand L’Oréal Paris continued to
gain market share with the launch of Ampoule in Cream. Garnier is
successfully rolling out a new Vitamin C booster serum.
L’ORÉAL LUXE
With the luxury beauty market
strongly bouncing back in the first half
of the year, L’Oréal Luxe posted growth at
+28.1%
like-for-like and
+24.9%
reported.In all geographical Zones, the Division
significantly outperformed the market, marked by the gradual
reopening of selective distribution. L’Oréal Luxe performed very
well in North Asia, particularly among Chinese consumers. It also
confirmed its solidity in Europe and saw a very strong recovery in
North America.The Division gained market share in all three of its
categories. First of all in skincare, thanks to its powerful global
brands Lancôme and Kiehl’s, a dynamic premium segment with Helena
Rubinstein and the couture lines Yves Saint Laurent and Giorgio
Armani, as well as the successful integration of Takami. Secondly,
in the fragrances category, which is extremely dynamic in North
America and mainland China, thanks to the complementarity of
Giorgio Armani, Valentino, Maison Margiela, Ralph Lauren, Yves
Saint Laurent and the recently acquired Mugler and Azzaro brands,
which delivered very strong performance, significantly
outperforming the market. And finally in makeup, the Division
showed clear signs of recovery in North Asia —driven by Lancôme,
Yves Saint Laurent and Shu Uemura— as well as in the United States
thanks to Lancôme and Urban Decay, which again won market
share.
ACTIVE COSMETICS
In a significantly improving market, the
Active Cosmetics Division recorded particularly strong growth in
the first half of the year, at
+37.5% like-for-like and
+32.0% based on reported figures.
The Division continued to record very strong growth, with its
skincare brand portfolio perfectly adapted to consumers’
health-related aspirations, which increased further during the
pandemic. It also continued to leverage the solid relationships
developed with healthcare professionals and its digital and
e-commerce expertise. All major brands recorded strong growth.
CeraVe doubled in size while La Roche-Posay continued to
accelerate, supported by the excellent performance of Effaclar and
Cicaplast. SkinCeuticals continued to grow rapidly, driven by the
innovation Silymarin CF. Vichy recovered and posted double-digit
growth.The Division saw very strong growth in all geographical
Zones, outperforming the market with exceptional performance in the
United States, mainland China and the United Kingdom. Thanks to a
targeted omnichannel activation strategy, e-commerce sales remained
extremely buoyant while in-store sales posted strong double-digit
growth.
Summary by geographic
Zone
During the first half of 2021, the Group
redefined its geographic Zones. At 30 June 2021, sales by
geographic Zone reflect this organisation and break down as
follows: Europe, North America, North Asia, SAPMENA – SSA6 and
Latin America.
EUROPE
The new Europe Zone, which brings together
Western Europe and Eastern Europe, is the largest of the Group in
terms of sales. It grew by +11.9% like-for-like and +11.6% based on
reported figures.At the end of June, all countries reported growth
and L’Oréal strengthened its leadership in Germany, the United
Kingdom, Russia and the Scandinavian countries.In the second
quarter, sales are close to pre-crisis levels, with the exception
of Travel Retail, which is still badly affected by the health
situation and the restrictions on international travel. E-commerce
saw very strong growth.The Consumer Products Division gained market
share, especially in makeup and haircare; Maybelline New York
strengthened its leadership in the makeup category. L’Oréal Luxe
continued to gain market share, especially in fragrances. The
Active Cosmetics Division considerably increased its market share,
driven by the dynamism of La Roche-Posay, which confirmed its
position as Europe’s No.1 dermocosmetics brand, and the rapid
development of CeraVe. Finally, the Professional Products Division
recorded significant growth despite the closure of salons in
several countries in the first quarter, thanks to the buoyancy of
e-commerce sales.
NORTH AMERICA
The Zone posted strong growth, at +23.2%
like-for-like and +13.8% based on reported figures. In the United
States, the Group accelerated strongly in the second quarter
despite temporary sourcing pressures, with a marked recovery in
makeup while sales of skincare and fragrances are far above 2019
levels. In-store sales picked up and e-commerce more than doubled
in two years. All Divisions achieved market share gains in the
second quarter. The Consumer Products Division accelerated, driven
by the launch of Sky High Mascara by Maybelline New York and the
confirmed recovery of NYX Professional Makeup. L'Oréal Luxe
benefited from the recovery of in-store sales and the explosion of
the fragrances category. Driven by the power of the SalonCentric
distribution channel, the Professional Products Division recorded
excellent performance and gained market share in haircare and hair
colour. Finally, sales for the Active Cosmetics Division, driven by
the remarkable performance of CeraVe and the acceleration of La
Roche-Posay, close to doubled compared with the first half of
2019.
NORTH ASIA
The Zone saw strong growth at +27.3%
like-for-like and +23.2% reported. Chinese consumer demand for the
big brands remained high, particularly for luxury beauty. The Group
consolidated its leadership in mainland China, still a major
contributor to L’Oréal’s overall performance, with an increase of
+34.2%. Confirming the recovery which began in the second quarter
of 2020, L’Oréal China gained market share in all Divisions and all
categories. Online sales continued to grow strongly, driven by the
arrival of new online retailers. During the important online
shopping festival on 18 June, L'Oréal Paris established itself as
the leading beauty brand on Tmall and JD, with Lancôme also in the
top 3. Japan and South Korea were both affected by the resurgence
of Covid-19 and posted moderate performance in the first half of
the year. Travel Retail continued to grow in the second quarter,
particularly in Hainan. E-commerce recorded strong growth in the
Zone and in-store sales recovered at different rates from one
country to another. L'Oréal Luxe accelerated strongly in online
sales and gained market share. Its growth was driven by skincare,
with Absolue by Lancôme and Helena Rubinstein in particular, and by
the strong recovery of makeup. The Consumer Products Division
gained market share in haircare while the Active Cosmetics Division
saw its growth accelerate, driven by La Roche-Posay. The
Professional Products Division posted record growth, thanks in
particular to Kérastase and L'Oréal Professionnel.
SAPMENA – SSA7
The Zone grew by +19.9% like-for-like and +13.3%
based on reported figures. The Pacific and Gulf states started to
recover while in India the Covid-19 pandemic continued to affect
sales in the second quarter. In South-East Asia, many countries
including Malaysia, Thailand, the Philippines and
Indonesia have been subject to heavy public health
restrictions. Vietnam has maintained strong growth. The growth of
the SAPMENA Zone was driven by the Consumer Products Division, with
good momentum from Garnier and Maybelline New York, by L’Oréal Luxe
in fragrances and skincare, as well as by the Active Cosmetics
Division with La Roche-Posay. The expansion of e-commerce, which is
seeing marked growth in Southern Asia and India, fuelled growth in
all Divisions.In Sub-Saharan Africa (SSA), growth was driven by
South Africa, which posted strong double-digit growth.
LATIN AMERICA
The Zone recorded strong growth of +32.8%
like-for-like and +22.7% based on reported figures. The recovery of
the beauty market has accelerated in recent months with the gradual
easing of lockdown measures and the lifting of restrictions on
movement in all countries. Despite a complicated public health
situation, Brazil was a strong contributor to growth and
significantly outperformed the market, driven by the Consumer
Products and Active Cosmetics Divisions. With Brazil, Mexico and
Chile leading the way, all countries and all Divisions recorded
double-digit growth. All categories saw strong growth thanks
to the quality of innovations and the success of the Group’s iconic
brands and products, particularly in haircare and skincare. With
the reopening of distribution channels, particularly department
stores and hair salons, in-store sales saw a return to growth,
while e-commerce sales almost doubled compared to the first half of
2020.
Important events during the
period 1/4/21 to
30/6/21 and post-closing
events
- On 20 April, L’Oréal held its
Annual General Meeting behind closed doors. All resolutions were
approved, including:
- Payment of a dividend of €4 per
share;
- Appointments as directors of Mr
Nicolas Hieronimus and Mr Alexandre Ricard, as well as renewal of
the tenures as directors of Ms Françoise Bettencourt Meyers, Mr
Paul Bulcke and Ms Virginie Morgon;
- Dissociation of the functions of
Chairman of the Board of Directors and Chief Executive Officer. Mr
Jean-Paul Agon will continue to fulfil the role of Chairman as he
has done since 2011 and Mr Nicolas Hieronimus was appointed Chief
Executive Officer as of 1 May 2021.
- On 20 April, the L’Oréal Board of
Directors decided, on the basis of the authorisation approved by
the Annual General Meeting of 20 April 2021, to buy back L’Oréal
shares for a maximum amount of 1.2 billion euros and a maximum of 3
million shares, in a period starting 3 May 2021 and ending 30
June 2021, in a view to cancelling them. 3,000,000 shares were
bought back from 3 May to 18 June 2021.
- On 22 April, L’Oréal announced the
appointment of Asmita Dubey as Chief Digital Officer, a member of
the Executive Committee, to drive the second phase of the Group’s
digital transformation.
- On 23 June, L’Oréal announced the
creation of the Europe Zone, led by Vianney Derville, previously
President of the Western Europe Zone.
- On 29 July, the Board of Directors
has decided to cancel 3,000,000 shares bought back, effective on 30
July 2021, pursuant the share buyback programme decided on 20 April
2021.
2021
Half-Year
Results
The limited review procedures of the half-year consolidated
accounts have been completed. The limited review report is being
prepared by the Statutory Auditors.
Operating profitability at
19.7% of sales
Consolidated profit and loss account: from sales
to operating profit.
In € million |
30/6/20 |
As % of sales |
31/12/20 |
As % of sales |
30/6/21 |
As % of sales |
Change H1-2021
vs. H1-2020 |
Sales |
13,076.5 |
100.0% |
27,992.1 |
100.0% |
15,196.6 |
100.0% |
+16.2% |
Cost of sales |
-3,512.3 |
26.9% |
-7,532.3 |
26.9% |
-3,869.5 |
25.5% |
|
Gross profit |
9,564.2 |
73.1% |
20,459.8 |
73.1% |
11,327.1 |
74.5% |
+18.4% |
R&I expenses |
-455.3 |
3.5% |
-964.4 |
3.4% |
-489.1 |
3.2% |
|
Advertising and promotion expenses |
-3,986.5 |
30.5% |
-8,647.9 |
30.9% |
-4,951.6 |
32.6% |
|
Selling, general and administrative expenses |
-2,765.2 |
21.1% |
-5,638.5 |
20.1% |
-2,898.2 |
19.1% |
|
Operating profit |
2,357.2 |
18.0% |
5,209.0 |
18.6% |
2,988.1 |
19.7% |
+26.8% |
Gross profit, at 11,327 million
euros, came out at 74.5% of sales, an increase of 140 basis points
compared to the first half of 2020.
Research and
Innovation expenses, at 489
million euros, came out at 3.2% of sales.
Advertising and promotion
expenses came out at 32.6% of sales, an increase of 210
basis points.
Selling,
general and administrative expenses, at 19.1% of
sales, decreased by 200 basis points compared to the first half of
2020.
Overall, operating profit came
out at 2,988 million euros, an increase of 170 basis points
compared to the 2020 first half, at 19.7% of sales.
Operating profit by
Division
|
30/6/20 |
31/12/20 |
30/6/21 |
|
€m |
% of sales |
€m |
% of sales |
€m |
% of sales |
By Division |
|
|
|
|
|
|
Professional Products |
140.0 |
10.4% |
581.7 |
18.8% |
363.9 |
20.5% |
Consumer Products |
1,243.7 |
21.3% |
2,388.1 |
20.4% |
1,193.4 |
20.0% |
L’Oréal Luxe |
892.0 |
20.4% |
2,275.9 |
22.4% |
1,301.9 |
23.8% |
Active Cosmetics |
433.8 |
28.9% |
766.0 |
25.4% |
570.0 |
28.8% |
Total Divisions before
non-allocated |
2,709.5 |
20.7% |
6,011.6 |
21.5% |
3,429.1 |
22.6% |
Non-allocated8 |
-352.3 |
-2.7% |
-802.6 |
-2.9% |
-441.0 |
-2.9% |
Group |
2,357.2 |
18.0% |
5,209.0 |
18.6% |
2,988.1 |
19.7% |
The L’Oréal group is managed on an annual basis.
This means that half-year operating profits cannot be extrapolated
for the whole year.
The profitability of the
Professional Products Division
went from 10.4% to 20.5%.
The profitability of the Consumer
Products Division increased at 20.0% compared to the first
half of 2020 at 21.3% of sales.
L’Oréal Luxe improved by 340
basis points at 23.8%.
The profitability of the
Active Cosmetics Division
slightly decreased by 10 basis points, still at a very high level
at 28.8%.
Net profit excluding non-recurring items
Consolidated profit and loss account: from
operating profit to net profit excluding non-recurring items.
In € million |
30/6/20 |
31/12/20 |
30/6/21 |
Change H1-2021
vs. H1-2020 |
Operating profit |
2,357.2 |
5,209.0 |
2 988.1 |
+26.8% |
Financial revenues and expenses |
-36.5 |
-95.9 |
-29.4 |
|
Sanofi dividends |
372.4 |
372.4 |
378.3 |
|
Profit before tax and associatesexcluding non-recurring items |
2,693.0 |
5,485.5 |
3,337.0 |
|
Income tax excluding non-recurring items |
-547.9 |
-1,383.1 |
-731.9 |
|
Net profit excluding non-recurring items of equity consolidated
companies |
+0.7 |
+0.9 |
+0.3 |
|
Non-controlling interests |
-1.1 |
-4.2 |
-5.4 |
|
Net profit excluding non-recurring
items, after non-controlling
interests9 |
2,144.8 |
4,099.0 |
2,600.0 |
+21.2% |
EPS10(€) |
3.82 |
7.30 |
4.63 |
+21.1% |
Diluted average number of shares |
561,233,745 |
561,635,963 |
561,833,554 |
|
Overall financial expenses came
out at 29.4 million euros.
Sanofi dividends amounted to
378.3 million euros.
Income tax excluding non-recurring
items came out at 731.9 million euros, i.e. a tax rate of
21.9%, higher than the first half of 2020.
Net profit excluding non-recurring items
after non-controlling interests came out at 2,600 million
euros.
Earnings per share, at 4.63
euros, increased by +21.1% compared with the first half of
2020.
Net profit
Consolidated profit and loss account: from net profit excluding
non-recurring items to net profit.
In € million |
30/6/20 |
31/12/20 |
30/6/21 |
Net profit excluding non-recurring
items,after non-controlling
interests 9 |
2,144.8 |
4,099.0 |
2,600.0 |
Non-recurring items |
-322.3 |
-535.7 |
-237.4 |
of which: |
|
|
|
- other income and
expenses
|
-407.1 |
-709.0 |
-315.3 |
|
+84.8 |
+173.3 |
+77.9 |
|
|
|
|
Net profit after non-controlling interests |
1,822.5 |
3,563.4 |
2,362.6 |
Non-recurring items amounted to 237.4 million
euros net of tax of which 315.3 million euros of other income and
expenses. They mainly include an impairment charge on the goodwill
of It Cosmetics for 250 million euros.
Operating cash flow and balance
sheet
Gross cash flow amounted to
3,336.1 million euros an increase of 25.0%.
The change in working capital
amounted to 675.1 million euros.
Investments at 523.1 million
euros represented 3.4% of sales.
Operating cash flow11 amounted
to 2,137.9 million euros, an increase of 67.7%.
At 30 June 2021, after taking into account
finance lease liabilities for 1,579 million euros, net
cash amounted to 2,372.8 million euros.
“This news release does not constitute an offer
to sell, or a solicitation of an offer to buy L’Oréal shares. If
you wish to obtain more comprehensive information about L’Oréal,
please refer to the public documents registered in France with the
Autorité des Marchés Financiers, also available in English on our
Internet site www.loreal-finance.com.
This news release may contain some
forward-looking statements. Although the Company considers that
these statements are based on reasonable hypotheses at the date of
publication of this release, they are by their nature subject to
risks and uncertainties which could cause actual results to differ
materially from those indicated or projected in these
statements.”
This is a free translation into English of the
2021 Half-Year Results news release issued in the French language
and is provided solely for the convenience of English-speaking
readers. In case of discrepancy, the French version prevails.
Contacts at
L'ORÉAL (Switchboard: +33 1 47 56 70
00)
Individual
shareholders Financial
analysts
and and
market authorities
Institutional
investors
Journalists
Mr Christian MUNICH
Ms Françoise
LAUVIN
Ms Polina HUARDTel: +33 1 47 56 72 06
Tel: +33 1 47 56 86 82
Tel: +33 1 47 56 87
88christian.munich2@loreal.com
francoise.lauvin@loreal.com
polina.huard@loreal.com
For more information, please contact your bank,
broker or financial institution (I.S.I.N. code: FR0000120321), and
consult your usual newspapers, the Internet site for shareholders
and investors www.loreal-finance.com or the L’Oréal Finance app,
alternatively, call +33 1 40 14 80 50.
Appendices
Appendix 1: L’Oréal group
sales 2020/2021 (€
million)
|
2020 |
2021 |
First quarter |
7,225.2 |
7,614.5 |
Second quarter |
5,851.3 |
7,582.1 |
First half total |
13,076.5 |
15,196.6 |
Third quarter |
7,036.8 |
|
Nine months total |
20,113.3 |
|
Fourth quarter |
7,878.8 |
|
Full year total |
27,992.1 |
|
Appendix 2: Compared consolidated income
statements
€ millions |
1st half
2021 |
1st half
2020 |
2020 |
Net sales |
15,196.6 |
13,076.5 |
27,992.1 |
Cost of sales |
-3,869.5 |
-3,512.3 |
-7,532.3 |
Gross profit |
11,327.1 |
9,564.2 |
20,459.8 |
Research & innovation expenses |
-489.1 |
-455.3 |
-964.4 |
Advertising and promotion expenses |
-4,951.6 |
-3,986.5 |
-8,647.9 |
Selling, general and administrative expenses |
-2,898.2 |
-2,765.2 |
-5,638.5 |
Operating profit |
2,988.1 |
2,357.2 |
5,209.0 |
Other income and expenses |
-315.3 |
-407.1 |
-709.0 |
Operational profit |
2,672.8 |
1,950.1 |
4,500.0 |
Finance costs on gross debt |
-22.5 |
-33.3 |
-79.2 |
Finance income on cash and cash equivalents |
12.4 |
10.6 |
19.8 |
Finance costs, net |
-10.1 |
-22.7 |
-59.4 |
Other financial income and expenses |
-19.2 |
-13.8 |
-36.5 |
Sanofi dividends |
378.3 |
372.4 |
372.4 |
Profit before tax and associates |
3,021.7 |
2,286.0 |
4,776.5 |
Income tax |
-654.0 |
-463.1 |
-1,209.8 |
Share of profit in associates |
0.3 |
0.7 |
0.9 |
Net profit |
2,368.0 |
1,823.6 |
3,567.6 |
Attributable to: |
|
|
|
|
2,362.6 |
1,822.5 |
3,563.4 |
- non-controlling interests
|
5.4 |
1.1 |
4.2 |
Earnings per share attributable to owners of the company
(euros) |
4.22 |
3.26 |
6.37 |
Diluted earnings per share attributable to owners of the company
(euros) |
4.21 |
3.25 |
6.34 |
Earnings per share attributable to owners of the company, excluding
non-recurring items (euros) |
4.65 |
3.84 |
7.33 |
Diluted earnings per share attributable to owners of the company,
excluding non-recurring items (euros) |
4.63 |
3.82 |
7.30 |
Appendix 3: Consolidated statement of comprehensive
income
€ millions |
1st half
2021 |
1st half
2020 |
2020 |
Consolidated net profit for the period |
2,368.0 |
1,823.6 |
3,567.6 |
Cash flow hedges |
-155.6 |
106.6 |
129.1 |
Cumulative translation adjustments |
281.5 |
-271.8 |
-790.2 |
Income tax on items that may be reclassified to profit or loss
(1) |
31.8 |
-27.9 |
-23.3 |
Items that may be reclassified to profit or
loss |
157.7 |
-193.1 |
-684.4 |
Financial assets at fair value through other comprehensive
income |
1,151.6 |
129.1 |
-1,269.1 |
Actuarial gains and losses |
386.2 |
-159.2 |
-225.6 |
Income tax on items that may not be reclassified to profit or loss
(1) |
-130.1 |
36.5 |
97.8 |
Items that may not be reclassified to profit or
loss |
1,407.6 |
6.4 |
-1,396.9 |
Other comprehensive income |
1,565.3 |
-186.7 |
-2,081.3 |
Consolidated comprehensive income |
3,933.3 |
1,636.9 |
1,486.3 |
Attributable to: |
|
|
|
|
3,927.9 |
1,635.8 |
1,482.1 |
- non-controlling interests
|
5.4 |
1.1 |
4.2 |
(1) The tax effect is as follows:
€ millions |
1st half
2021 |
1st half
2020 |
2020 |
Cash flow hedges |
31.8 |
-27.9 |
-23.3 |
Items that may be reclassified to profit or
loss |
31.8 |
-27.9 |
-23.3 |
Financial assets at fair value through other comprehensive
income |
-36.9 |
-3.4 |
40.4 |
Actuarial gains and losses |
-93.3 |
39.9 |
57.4 |
Items that may not be reclassified to profit or
loss |
-130.1 |
36.5 |
97.8 |
TOTAL |
-98.3 |
8.6 |
74.5 |
Appendix 4: compared consolidated
balance sheets
▌ ASSETS
€ millions |
30.06.2021 |
30.06.2020 |
31.12.2020 |
Non-current assets |
30,192.7 |
30,806.3 |
29,046.8 |
Goodwill |
10,559.0 |
10,856.5 |
10,514.2 |
Other intangible assets |
3,455.0 |
3,066.7 |
3,356.3 |
Right-of-use assets |
1,414.3 |
1,723.7 |
1,525.3 |
Property, plant and equipment |
3,182.9 |
3,418.0 |
3,225.2 |
Non-current financial assets |
10,786.5 |
10,932.2 |
9,604.8 |
Investments accounted for the equity method |
10.5 |
11.4 |
11.1 |
Deferred tax assets |
784.5 |
797.8 |
809.9 |
Current assets |
13,762.9 |
15,045.7 |
14,560.1 |
Inventories |
2,948.2 |
2,947.6 |
2,675.8 |
Trade accounts receivable |
3,991.8 |
3,756.1 |
3,511.3 |
Other current assets |
1,869.4 |
1,698.1 |
1,732.7 |
Current tax assets |
129.3 |
202.3 |
234.4 |
Cash and cash equivalents |
4,824.3 |
6,441.6 |
6,405.9 |
TOTAL |
43,955.6 |
45,852.0 |
43,606.9 |
▌ EQUITY &
LIABILITIES
€ millions |
30.06.2021 |
30.06.2020 |
31.12.2020 |
Equity |
29,636.8 |
28,987.0 |
28,998.8 |
Share capital |
112.1 |
111.9 |
112.0 |
Additional paid-in capital |
3,265.6 |
3,158.2 |
3,259.8 |
Other reserves |
18,909.3 |
18,581.3 |
18,642.5 |
Other comprehensive income |
5,588.5 |
5,680.9 |
4,304.5 |
Cumulative translation adjustments |
-607.9 |
-371.0 |
-889.2 |
Treasury shares |
— |
— |
— |
Net profit attributable to owners of the company |
2,362.6 |
1,822.5 |
3,563.4 |
Equity attributable to owners of the company |
29,630.2 |
28,983.8 |
28,993.0 |
Non-controlling interests |
6.6 |
3.2 |
5.8 |
Non-current liabilities |
2,987.6 |
3,414.2 |
3,478.0 |
Provisions for employee retirement obligations and related
benefits |
650.0 |
941.4 |
1,013.5 |
Provisions for liabilities and charges |
57.9 |
56.7 |
56.8 |
Non-current tax liabilities |
364.2 |
251.9 |
397.9 |
Deferred tax liabilities |
710.0 |
693.8 |
706.6 |
Non-current borrowings and debt |
8.9 |
9.6 |
8.5 |
Non-current lease debt |
1,196.5 |
1,460.7 |
1,294.7 |
Current liabilities |
11,331.3 |
13,450.8 |
11,130.1 |
Trade accounts payable |
5,386.3 |
4,124.6 |
4,764.5 |
Provisions for liabilities and charges |
1,211.1 |
1,029.6 |
1,224.7 |
Other current liabilities |
3,263.5 |
5,160.1 |
3,682.5 |
Income tax |
224.3 |
326.9 |
215.1 |
Current borrowings and debt |
863.6 |
2,411.5 |
856.4 |
Current lease debt |
382.5 |
398.1 |
386.9 |
TOTAL |
43,955.6 |
45,852.0 |
43,606.9 |
Appendix 5: consolidated statements of
change in equity
€ millions |
Common shares outstanding |
Share capital |
Additional paid-in capital |
Retained earnings and net profit |
Other comprehensive income |
Treasury shares |
Cumulative translation adjustments |
Equity attributable to owners of the company |
Non-controlling interests |
Equity |
AT 31.12.2019 |
558,117,205 |
|
111.6 |
|
3,130.2 |
|
20,681.0 |
|
5,595.8 |
|
— |
-99.2 |
|
29,419.3 |
|
6.7 |
|
29,426.0 |
|
Consolidated net profit for the period |
|
|
|
3,563.4 |
|
|
|
|
3,563.4 |
|
4.2 |
|
3,567.6 |
|
Cash flow hedges |
|
|
|
|
105.6 |
|
|
|
105.6 |
|
0.2 |
|
105.8 |
|
Cumulative translation adjustments |
|
|
|
|
|
|
-801.8 |
|
-801.8 |
|
-0.3 |
|
-802.1 |
|
Hyperinflation |
|
|
|
|
|
|
11.9 |
|
11.9 |
|
— |
11.9 |
|
Other comprehensive income that may be
reclassified to profit and loss |
|
|
|
|
105.6 |
|
|
-789.9 |
|
-684.3 |
|
-0.1 |
|
-684.4 |
|
Financial assets at fair value through other comprehensive
income |
|
|
|
|
-1,228.8 |
|
|
|
-1,228.8 |
|
|
-1,228.8 |
|
Actuarial gains and losses |
|
|
|
|
-168.1 |
|
|
|
-168.1 |
|
|
-168.1 |
|
Other comprehensive income that may not be
reclassified to profit and loss |
|
|
|
|
-1,396.9 |
|
|
— |
|
-1,396.9 |
|
— |
|
-1,396.9 |
|
Consolidated comprehensive income |
|
|
|
3,563.4 |
|
-1,291.3 |
|
|
-789.9 |
|
1,482.1 |
|
4.2 |
|
1,486.3 |
|
Capital increase |
1,754,375 |
|
0.4 |
|
129.6 |
|
-0.2 |
|
— |
|
— |
129.8 |
|
— |
129.8 |
|
Cancellation of Treasury shares |
|
— |
|
— |
— |
— |
— |
— |
|
— |
— |
|
Dividends paid (not paid on Treasury shares) |
|
|
|
-2,172.6 |
|
— |
— |
— |
-2,172.6 |
|
-4.9 |
|
-2,177.5 |
|
Share-based payment |
|
|
|
129.7 |
|
— |
— |
— |
129.7 |
|
— |
129.7 |
|
Net changes in Treasury shares |
— |
|
|
— |
— |
— |
— |
— |
|
— |
— |
|
Changes in scope of consolidation |
|
|
|
— |
— |
— |
— |
— |
|
— |
— |
|
Other movements |
|
|
|
4.8 |
|
— |
— |
— |
4.8 |
|
-0.1 |
|
4.7 |
|
At 31.12.2020 |
559,871,580 |
|
112.0 |
|
3,259.8 |
|
22,206.0 |
|
4,304.5 |
|
— |
-889.1 |
|
28,993.0 |
|
5.8 |
|
28,998.8 |
|
Consolidated net profit for the period |
|
|
|
2,362.6 |
|
|
|
|
2,362.6 |
|
5.4 |
|
2,368.0 |
|
Cash flow hedges |
|
|
|
|
-123.6 |
|
|
|
-123.6 |
|
-0.2 |
|
-123.8 |
|
Cumulative translation adjustments |
|
|
|
|
|
|
266.8 |
|
266.8 |
|
0.2 |
|
267.0 |
|
Hyperinflation |
|
|
|
|
|
|
14.5 |
|
14.5 |
|
|
14.5 |
|
Other comprehensive income that may be
reclassified to profit and loss |
|
|
|
|
-123.6 |
|
|
281.3 |
|
157.7 |
|
— |
|
157.7 |
|
Financial assets at fair value through other comprehensive
income |
|
|
|
|
1,114.7 |
|
|
|
|
1,114.7 |
|
|
|
1,114.7 |
|
Actuarial gains and losses |
|
|
|
|
292.9 |
|
|
|
|
292.9 |
|
|
|
292.9 |
|
Other comprehensive income that may not be
reclassified to profit and loss |
|
|
|
|
1,407.6 |
|
|
— |
|
1,407.6 |
|
— |
|
1,407.6 |
|
Consolidated comprehensive income |
|
|
|
2,362.6 |
|
1,284.0 |
|
— |
281.3 |
|
3,927.9 |
|
5.4 |
|
3,933.3 |
|
Capital increase |
800,168 |
|
0.2 |
|
5.8 |
|
-0.2 |
|
|
|
|
|
|
|
5.8 |
|
|
|
5.8 |
|
Cancellation of Treasury shares |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Dividends paid (not paid on Treasury shares) |
|
|
|
-2,264.4 |
|
|
|
|
|
|
|
-2,264.4 |
|
-4.7 |
|
-2,269.1 |
|
Share-based payment |
|
|
|
75.9 |
|
|
|
|
|
|
|
75.9 |
|
|
|
75.9 |
|
Net changes in Treasury shares |
-3,000,000 |
|
|
|
|
|
|
|
-1,104.8 |
|
|
-1,104.8 |
|
|
|
-1,104.8 |
|
Changes in scope of consolidation |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Other movements |
|
|
|
-3.2 |
|
|
|
|
|
|
|
-3.2 |
|
0.1 |
|
-3.1 |
|
AT
30.06.2021 |
557,671,748 |
|
112.1 |
|
3,265.6 |
|
22,376.7 |
|
5,588.5 |
|
-1,104.8 |
-607.9 |
|
29,630.2 |
|
6.6 |
|
29,636.8 |
|
▌ CHANGES IN FIRST-HALF
2020
€ millions |
Common shares outstanding |
Share capital |
Additional paid-in capital |
Retained earnings and
net profit |
Other comprehensive
income |
Treasury shares |
Cumulative translation adjustments |
Equity attributable to
owners of the
company |
Non- controlling
interests |
Equity |
At 31.12.2019 |
558,117,205 |
|
111.6 |
|
3,130.2 |
|
20,680.9 |
|
5,595.8 |
|
— |
|
-99.2 |
|
29,419.3 |
|
6.7 |
|
29,426.0 |
|
Consolidated net profit for the period |
|
|
|
1,822.5 |
|
|
|
|
1,822.5 |
|
1.1 |
|
1,823.6 |
|
Cash flow hedges |
|
|
|
|
78.7 |
|
|
|
78.7 |
|
|
78.7 |
|
Cumulative translation adjustments |
|
|
|
|
|
|
-276.8 |
|
-276.8 |
|
|
-276.8 |
|
Hyperinflation |
|
|
|
|
|
|
5.0 |
|
5.0 |
|
|
5.0 |
|
Other comprehensive income that maybe
reclassified to profit and loss |
|
|
|
|
78.7 |
|
|
-271.8 |
|
-193.1 |
|
— |
|
-193.1 |
|
Financial assets at fair valuethrough other comprehensive
income |
|
|
|
|
125.7 |
|
|
|
125.7 |
|
|
125.7 |
|
Actuarial gains and losses |
|
|
|
|
-119.3 |
|
|
|
-119.3 |
|
|
-119.3 |
|
Other comprehensive income that maynot be
reclassified to profit and loss |
|
|
|
|
6.4 |
|
|
— |
|
6.4 |
|
— |
|
6.4 |
|
Consolidated comprehensive income |
|
|
|
1,822.5 |
|
85.1 |
|
|
-271.8 |
|
1,635.8 |
|
1.1 |
|
1,636.9 |
|
Capital increase |
1,180,975 |
|
0.2 |
|
28.0 |
|
-0.2 |
|
|
|
|
28.1 |
|
|
28.1 |
|
Cancellation of Treasury shares |
|
|
|
|
|
|
|
— |
|
|
— |
|
Dividends paid (not paid on Treasury shares) |
|
|
|
-2,166.5 |
|
|
|
|
-2,166.5 |
|
-4.9 |
|
-2,171.3 |
|
Share-based payment |
|
|
|
67.3 |
|
|
|
|
67.3 |
|
|
67.3 |
|
Net changes in Treasury shares |
|
|
|
|
|
|
|
— |
|
|
— |
|
Changes in scope of consolidation |
|
|
|
|
|
|
|
— |
|
0.3 |
|
0.3 |
|
Other movements |
|
|
|
-0.3 |
|
|
|
|
-0.3 |
|
|
-0.3 |
|
AT 30.06.2020 |
559,298,180 |
|
111.9 |
|
3,158.2 |
|
20,403.8 |
|
5,680.9 |
|
— |
|
-371.0 |
|
28,983.8 |
|
3.2 |
|
28,987.0 |
|
(1) As the Annual General Meeting to
approve the financial statements as at 31 December 2019 was held on
30 June 2020, the dividends for financial year 2019 were not paid
at 30 June 2020 and were presented on the balance sheet in “Other
current liabilities”.
(2) Appendix 6:
compared consolidated statements of cash
flows
€ millions |
1st half
2021 |
1st half
2020 |
2020 |
Cash flows from operating activities |
|
|
|
Net profit attributable to owners of the company |
2,362.6 |
1,822.5 |
3,563.4 |
Non-controlling interests |
5.4 |
1.1 |
4.2 |
Elimination of expenses and income with no impact on cash
flows: |
|
|
|
• depreciation, amortisation, provisions and non-current tax
liabilities |
910.3 |
787.4 |
2,028.1 |
• changes in deferred taxes |
-28.3 |
-16.3 |
-10.1 |
• share-based payment (including free shares) |
75.9 |
67.3 |
129.7 |
• capital gains and losses on disposals of assets |
1.4 |
4.5 |
3.6 |
Other non-cash transactions |
8.1 |
2.9 |
5.8 |
Share of profit in associates net of dividends received |
0.6 |
-0.7 |
-0.6 |
Gross cash flow |
3,336.1 |
2,668.6 |
5,724.1 |
Changes in working capital |
-675.1 |
-889.2 |
729.2 |
Net cash provided by operating activities (A) |
2,661.0 |
1,779.4 |
6,453.3 |
Cash flows from investing activities |
|
|
|
Purchases of property, plant and equipment and intangible
assets |
-523.1 |
-504.8 |
-972.4 |
Disposals of property, plant and equipment and intangible
assets |
12.5 |
18.6 |
26.6 |
Changes in other financial assets (including investments in
non-consolidated companies) |
-23.9 |
6.6 |
-66.5 |
Effect of changes in the scope of consolidation |
-161.3 |
-1,316.5 |
-1,626.8 |
Net cash from investing activities (B) |
-695.8 |
-1,796.0 |
-2,639.1 |
Cash flows from financing activities |
|
|
|
Dividends paid |
-2,322.0 |
-82.6 |
-2,190.6 |
Capital increase of the parent company |
5.8 |
28.1 |
129.7 |
Capital increase of subsidiaries |
— |
— |
— |
Disposal (acquisition) of Treasury shares |
-1,104.8 |
— |
— |
Purchase of non-controlling interests |
— |
— |
— |
Issuance (repayment) of short-term loans |
26.5 |
1,509.3 |
-74.8 |
Issuance of long-term borrowings |
— |
— |
— |
Repayment of long-term borrowings |
— |
— |
-3.6 |
Repayment of lease debt |
-200.9 |
-219.7 |
-451.8 |
Net cash from financing activities (C) |
-3,595.3 |
1,235.1 |
-2,591.1 |
Net effect of changes in exchange rates and fair value (D) |
48.5 |
-62.8 |
-103.2 |
Change in cash and cash equivalents (A+B+C+D) |
-1,581.6 |
1,155.7 |
1,119.9 |
Cash and cash equivalents at beginning of the period
(E) |
6,405.9 |
5,286.0 |
5,286.0 |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
(A+B+C+D+E) |
4,824.3 |
6,441.7 |
6,405.9 |
1 Like-for-like: based on comparable structures
and identical exchange rates.2 Sales achieved on our brands’ own
websites + estimated sales achieved by our brands corresponding to
sales through our retailers’ websites (non-audited data).3 Diluted
earnings per share, excluding non-recurring items, after
non-controlling interests.4 SAPMENA-SSA: South Asia Pacific, Middle
East, North Africa and Sub-Saharan Africa5 SAPMENA – SSA: South
Asia Pacific, Middle East, North Africa and Sub-Saharan Africa6
SAPMENA – SSA: South Asia Pacific, Middle East, North Africa and
Sub-Saharan Africa7 SAPMENA – SSA: South Asia Pacific, Middle East,
North Africa and Sub-Saharan Africa
8 Non-allocated expenses = Central Group
expenses, fundamental research expenses, stock options and free
grant of shares expenses and miscellaneous items. As a % of total
sales.9 Net profit excluding non-recurring items, after
non-controlling interests, excludes mostly capital gains and losses
on disposals of long-term assets, impairment of assets,
restructuring costs, tax effects and non-controlling interests.10
Diluted net profit per share, excluding non-recurring items, after
non-controlling interests.11 Operating cash flow = Gross cash flow
+ changes in working capital - capital expenditure.
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