Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on L'OREAL. We currently have 7 research reports from 1 professional analysts.
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L’Oréal Luxe outperforms and embellishes the growth in Q1
19 Apr 17
L’Oreal managed to deliver healthy growth in Q1. Sales were up 5.1% at CER (+7.5% reported) to €7,045m. Organic growth was lower at 4.2%. A surprising dynamism in luxury products’ consumption has raised the sales of L’Oréal Luxe by 12.2% lfl to reach €2,157m. Active cosmetics displayed a modest performance of 2.8% lfl to €603.2m. Poor growth was posted by the mainstay consumer products (+1.4% lfl) to €3,229m. Professional products experienced a depressed momentum and retreated slightly by 1.8% lfl to €858.2m. As regards geographies, Eastern Europe and Asia experienced favourable market dynamism, edging up by 12.7% and 7.1% lfl respectively. Sales in Africa and the Middle East were cut 18.8% to €166.5m. Americas posted mid single-digit growth rates at 4.6% in Latin America (€474.7m) and 3.8% in the North America (€1,917m). Western Europe was the most depressed market, growing by 2.8% lfl (€2,136m). The Body Shop’s sales were up 2.3% lfl to €197.2m. The company is expanding its e-commerce which grew by 27% in Q1, contributing 6.8% to total sales.
Healthy organic growth in 2016 but Body Shop still an issue
10 Feb 17
Sales in Q4 edged up 4.8% lfl (4.4% reported) to €6,789m. Growth was led by L’Oréal Luxe products and Active cosmetics growing by respectively 7.1% and 6.5% lfl. Consumer products sales increased by 4.2% and Professional products posted a modest 2.1% rise. The full-year sales were up 4.7% lfl to €25,837m (+5.1% at CER and +2.3% reported). Professional products edged up by low single-digit rate to €3,400m. Consumer products increased by a modest 4.4% lfl to €11,993m. Luxe products surged by 6.9% to €7,662m. Active cosmetics were up 5.7% to €1,861m. Body Shop products remained almost flat on a lfl basis at €920.8m (down 4.8% reported). Growth was driven by a favourable sales momentum in North America increasing by 5.8% to €7,099m and Asia Pacific edging up by 3.6% to €5,635m. The strong dynamism in Latin America and Eastern Europe raised sales to €1,838m (+11.1% lfl) and €1,571m (+10.4% lfl) respectively. The gross margin gained 40bp to 71.6% with a gross profit at €18,495m. Operating profit was up 3.5% to €4,540m, i.e. an operating margin of 17.6%. Most segments raised their operating margins, led by L’Oréal Luxe which increased its margin to 21.2% (€1,623m). Consumer products generated an operating profit of €2,417m. All regions raised their profit, led by North America where the operating profit was up by 10.8% to €1,392m. Western Europe generated an operating profit of €1,831m, still the highest margin at 22.9%. Dividends received from Sanofi increased slightly by 2.8% to €346.5m. Net profit retreated by 5.8% to €3,106m due to non-recurring charges of €541m net of tax, which corresponds mainly to the Magic and Clarisonic impairment impact. Gross cash surged by 7.2% to €4,717m. WCR remained almost flat and investments were consolidated to 5.4% of sales at €1,386m. The financial position remains strong with a positive net cash of €481m. The proposed dividend is €3.3, i.e. an increase of 6.45%.
Solid organic growth in Q3 strengthens confidence
04 Nov 16
L’Oreal experienced favourable market momentum in Q3 across all regions and all product categories. Group sales accelerated with organic growth of 5.6% to reach €6,153m (+4% on a reported basis). As regards products, Cosmetics edged up 5.6% lfl (€5,952m), underpinned by the outperformance of L’Oréal Luxe which surged 9.3% lfl to reach €1,858m. Consumer products’ sales amounted to €2,859m, i.e. a rise of 4.7%. Professional products posted almost flat sales (+0.9% lfl) at €808.5m. Active cosmetics’ sales were up 6.5% to reach €425.7m. The Body Shop division grew 2.8% lfl to €200.9m. By geography, the strong momentum in North America, which is the second largest market for L’Oreal, has underpinned the group’s performance with 7.5% organic growth and sales worth €1,755m. Sales in Western Europe grew slightly by 2.2%, while in Eastern Europe they jumped 11.7%. In Asia, sales posted a single-digit growth rate of 3.2% to reach €1,324m. Over the first nine months, group revenues amounted to €19,048m, i.e. an increase of 4.7% lfl (+4.9% at CER and +1.6% on a reported basis). E-commerce sales edged up 32%.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)
Small Cap Breakfast
24 Apr 17
Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April on AIM raising £122m. ADES International Holding— Intends to join the Standard List of the Main Market in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
Mature market growth still negative, despite beat in Q1
20 Apr 17
Unilever (ULVR LN, HOLD, T/P 3800p) released their Q1 trading statement this morning – Q1 underlying sales grew 2.9%. Turnover increased 6.1% to €13.3bn, in front of Bloomberg consensus of €13.2bn. Despite trading market conditions being described as tough, Unilever grew pricing by 3.0%, but saw volume declining 0.1%.