The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.

Annual Report Re-Design by Taylor McCormick

Discover the best professional documents and content resources in AnyFlip Document Base.
Published by Taylor McCormick, 2019-12-21 13:07:44

McCormick_L'Oreal Annual Report

Annual Report Re-Design by Taylor McCormick

annual report





6 4

Prospects Our Mission and Strategy

· 08 prospects by jean-paul III, · 05 our mission and strategy
chairman & cEO
· 12 the board of directors
· 30 the world of beauty in 2018 · 14 the quest for excellence
· 32 focus on the skincare market · 16 ethics
· 18 responsibility
· 34 loreal in figures · 20 sharing beauty with all
· 38 our “sharing beauty with all indicators” · 22 spot 1
· 24 human relations
· 26 top 10

· 46 brands overview

· 48 consumer products

&Our Mission


Our mission
beauty for all
Offering all women and men worldwide
the best of cosmetics in terms of quality,
efficacy and safety to satisfy all their beauty
needs and desires, in their infinite diversity.

Our strategy
L’Oréal has chosen a unique strategy:
Univesalisation. It means globalisation
that captures, understands and respects
differences in desires, needs and traditions.
To offer tailor-made beauty, and meet
the aspirations of consumers in everypart
of the world. L’Oréal is driven by

this vision of the world.





prospects We significantly outperformed the mar-
ket, generating strong positions in the
Prospects most promising and strategic areas for
the future. We strongly reinforced our
By Jean-Paul III. position in Asia Pacific, where we en-
joyed our highest growth. Asia Pacific
overtook North America to become our
second largest Zone this year. By sector,
The cosmetics market contued we outpaced the market in both luxu-
to grow steadily and in fact ac- ry, the most dynamic of the markets,
celerated in 2018. Do you think and dermocosmetics, ideally placed to
this is a structural trend? meet rapidly growing health and well-
being expectations all over the world.
Clearly, the market has been par- We strengthened our leadership in two
ticularly buoyant, making 2018 thriving channels: e-commerce and
the best year in 20 years(1). Travel Retail. Finally, we outperformed
There are strong underlying trends in skincare, the category where the
driving this acceleration over the past combination of trusted brands, power
few years. The first, and probably most franchises and the innovation offered
important factor is the insatiable de- by our Research & Innovation, is a win-
sire for beauty across all countries and ning equation. In fact, digital is doing
cultures. Second, premiumisation: con- much more than generating additional
sumers are ready to pay more and trade business. It is radically transforming our
up for products with new benefits, company. Digital is boosting our brand
better performance and superior qual- power. In this world of algorithms, big-
ity. Third, digitalisation, as beauty and ger is truly better. In 2018, our biggest
digital are a perfect match. It has never brands have become even stronger. Dig-
been easier to discover beauty, share ital is also strengthening our power to
it and buy products online, even in connect with consumers.
the most remote corners of the world.
Digital is and will remain a terrific The acquisition of ModiFace, for exam-
booster for beauty. Finally, our market ple, has been instrumental in enriching
is also fuelled by increased penetration the services we offer. Digital is now to-
of beauty all over the world. tally embedded in our teams: in every
brand, in every Division, every function
First, because of e-commerce, which and every country, infusing the entire
is extending our reach far beyond the company with digital excellence. Digi-
limits of traditional distribution, es- tal has been, and will continue to be, a
pecially in emerging economies. Also powerful accelerator for growth. Beyond
because of many white spaces in terms digital, new technologies are opening
of categories and countries. And final- up new horizons for beauty. And we
ly because there are always new con- are absolutely determined to be the
sumer targets. Once again, L’Oréal pioneers, the champions and the lead-
outperformed the market. What were ers of this new Beauty Tech(1) world.
the drivers of this growth? Our growth Delivering financial performance while
accelerated to produce our best year in being a committed corporate citizen is
more than 10 years. And we achieved a probably our greatest source of pride.
new record operating margin of 18.3%. This is what motivates us to always go
the extra mile. Once again, in 2018, we
8 made major advances that have been
recognised by renowned external insti-
tutions. L’Oréal is the only company in
the world to obtain 3 ‘A’ ratings from

the CDP(2) for the third year running.
It recognises our actions in fighting cli-
mate change, ensuring water security
and combating deforestation. In terms
of diversity, we were ranked as the top
gender-balanced company in Europe
by Equileap. And in terms of ethics, we
are very proud that for the first time, in
November 2018, we were ranked as the
leading company worldwide, across all
industries, by Covalence EthicalQuote.
Your 2018 results represent a histor-
ic achievement and you have been the
leader of your market for years. that vic-
tories are won on the ground.

Our deep conviction is that economic
and environmental, social and societal
performance go hand in hand and mu-
tually reinforce each other. These five
founding principles make L’Oréal a dif-
ferent kind of company, unique in this
industry, perfectly adapted and in tune
with the evolution of the world.

“We firmly believe that victories
are won on the pitch. This is linked to the

incredible qualities of our







strategy | the board of directors

“At 31 December 2018, board mem-
bers represent seven different
nationalities and


of them are women.”


Stable Governance In A ularly meet with the senior executives The Board of Directors
Swiftly Changing of the Group. This transparent and
Cosmetics Market. constructive dialogue culminates in
a shared strategic vision, which gives
The composition of the Board of Di- General Management the confidence
rectors reflects L’Oréal’s unique share- necessary to implement it. A strategic
holding structure and guarantees the seminar held in Shanghai in June 2018
interests of all its shareholders. Along- provided an in-depth understanding
side the Chairman and Chief Execu- not only of the unique characteristics
tive Officer, there are three directors of the Chinese cosmetics market but
from the Bettencourt Meyers family, also of the latest innovations that are
two directors who represent Nestlé, revolutionising Beauty.
seven independent directors and two
directors representing employees. The Proactive and
diversity and complementarity of the Committed Directors
directors’ industrial, financial and en-
trepreneurial expertise equip them to The directors are committed and pro-
quickly and thoroughly assess the de- active, driven by the conviction that
velopment challenges facing L’Oréal, stringent governance creates value for
the leader of a globalised and highly the company. They always keep the
competitive cosmetics market in which company’s long-term interests up-
the need to innovate and adapt is cru- permost in mind as they voice their
cial. Most of the directors have expe- opinions. The Board closely monitors
rience managing international groups changes in best practices and, to en-
at the highest level. At 31 December sure that constant progress is achieved,
2018, Board members represent seven carries out a full review of its modus
different nationalities and 46% of them operandi and organisation every year.
are women. Three of the four Commit- It determines which topics to prioritise
tees are chaired by independent female at this annual review, in order to steer
directors. L’Oréal’s long-term strategy.

A Board of Directors That Ethics at the Heart of
Fully Assumes Its Respon- L’Oréal’s Governance
sibility to Provide Strategic and Commitments
Reflection and Impetus
The Board of Directors places great
The Board devotes most of its time to importance on respecting L’Oréal’s
strategic issues to foster and acceler- ethical principles – Integrity, Respect,
ate the Group’s transformation into a Courage and Transparency – and more
more universal, more digital and more generally its Code of Ethics. In 2018,
sustainable L’Oréal. The Board is kept the Senior Vice-President and Chief
informed throughout the year about Ethics Officer presented the ethics
the Group’s activities and results, its policy and the initiatives taken in this
position in relation to its competitors, field, as well as their results. The Board
market trends and the expectations of considers the policy to be an integral
consumers all over the world. It exam- part of L’Oréal’s growth model, sup-
ines acquisition projects and monitors ports its implementation and regularly
the integration of recently acquired measures the progress made.
companies. The Board members reg-

strategy | the quest for excellance


The quest for excellence At L’Oréal, offering consumers effective,
high-quality products is a commitment – it’s our obsession. In all our
plants and subsidiaries, our teams comply with internal norms that go
far beyond current regulations. We conduct about 100 quality con-
trols for each of our cosmetics products, spacing them throughout the
manufacturing cycle, from development – sourcing raw materials and
packaging – through to distribution, by way of manufacturing. Thanks
to this process, we receive an average of just 49 complaints for every
million products sold. Our goal is to reduce the number of complaints
to the bare minimum over the years to come.


Consumers Services

Consumers trust our brands, which L’Oréal aims to provide all consumers
are committed to providing consumers with a beauty experience that fulfils
with all of the information they need their different aspirations, cultures and
about their products, with sincerity habits. To provide the best beauty has
and transparency. Consumer satisfac- to offer, L’Oréal is a pioneer in the dig-
tion is our priority and their feedback ital arena and is relying on new tech-
and comments help us in our pursuit nologies to offer high-quality services
of excellence. L’Oréal’s longevity is in stores and online. Thanks to aug-
undoubtedly the clearest proof of con- mented reality, artificial intelligence
sumer trust in our brands, which create and data processing, we are develop-
unique experiences, build privileged ing radically new experiences all over
relationships and deliver products of the globe, taking the infinite diversity
the best possible quality. of our consumers into account. These
new techniques harness the power of
Performance beauty and create real impact while
also effectively serving our consumers.
Relying on a Governance with a wide
range of recognised talents, L’Oréal Talents
does its utmost to create profitable and
sustainable growth and performance Quality is everyone’s concern – it’s
that commands trust from its share- a culture we all share. With passion
holders and investors. The remarkable and commitment, our employees use
figures obtained for many years now their talents to serve the company, its
are the fruit of this obsession with brands, products and consumers, to
quality that characterises the Group. provide them with the best possible
Strengthened by this performance, quality. This expectation is present on
L’Oréal continues to develop its brands a daily basis in all of our professions,
and pursue its acquisitions policy to from plants to shops to internation-
further enrich its palette of brands and al management offices and different
create organic growth. We look con- countries – it is present in every part of
fidently to the future, driven by this L’Oréal. These amazing teams are the
commitment to quality. Group’s most important asset and the
guarantors of L’Oréal excellence.
To offer our consumers benefit from
raw materials of the highest possi- In all that we do, for each product
ble quality, it is essential to surround that we create and put into consumers’
ourselves with the best suppliers. To hands, we have just one obsession, a
find them, we conduct comprehensive single word on all our lips: excellence.
quality audits to ensure each potential We are committed to a constant quest
partner respects our demanding cri- for quality, to provide our consumers
teria and the applicable regulations. with ingredients, products, services and
Once selected, our suppliers commit to performance of the best quality.
upholding the L’Oréal Quality Char-
ter to be a part of our pursuit of excel- 15
lence. They are also regularly audited.
Our close relationships with suppliers
enable us to keep tight reins on the re-
liability and traceability of materials.

strategy | ethics

’Oréal was built
on strong ethical

Lprinciples that

guide its development
and contribute to build-
ing its reputation. These

Ethprinciples are name-
ly the foundation of
the Group’s policies in
terms of environmental
stewardship, social and
societal responsibility,
diversity, compliance
and philanthropy.

Each year, Ethics Day
has enabled the Group
to explore its key ethical
principles. It is an ide-
al opportunity for em-
ployees to put questions
about ethical matters to
Jean-Paul Agon, who
answers them via a live
webchat, but also for
Country Managers to
do the same at a regional
level. In 2018, all mem-
bers of the Executive
Committee also took
part in the same exer-
cise. Since the first-ever
Ethics Day was held in
2009, the participation
rate has more than tri-
pled worldwide, with
thousands of questions
being asked each year.




strategy | responsibility


88% 79%

of brands have assessed of products launched
their environmental in 2018 have an
or social impact
improved environmental
or social profile

reduction in CO2
emissions in absolute
terms at our factories
and distribution centres
since 2005



L’Oréal’s strength lies in captur- the climate L’Oréal is redoubling its ef-
ing the long-term shifts in the forts on the particularly pressing issue
world of beauty and developing of the climate through the initiatives
them all over the world. The same is of its “Sharing Beauty With All” pro-
true of its corporate social responsi- gramme. L’Oréal has also set new goals
bility: while environmental and social for the future. By 2025, all L’Oréal’s
issues are becoming increasingly press- industrial, administrative and research
ing, the Group has long had ambitious sites should be carbon neutral and
commitments and been involved in a the Group has undertaken to reduce
continuous improvement process in its greenhouse gas emissions by 25%
this regard. As a key player in driving in absolute terms by 2030 (compared
change alongside institutions, govern- with 2016), by aligning its commit-
ments and citizens, L’Oréal is involved ments with the two degrees trajectory
in identifying sustainable solutions for needed for the planet. Although there
the future through its partnerships and is still a long way to go and the Group
the commitments it makes. The Group is constantly looking for ways to im-
contributes to 14 of the United Na- prove, L’Oréal has already – thanks to
tions Sustainable Development Goals, its initiatives and the positions it has
in areas ranging from fighting pover- taken – managed to establish its po-
ty to gender equality and sustainable sition as an opinion leader and driver
consumption, to promoting measures of change in a number of areas in the
to combat climate change. Actions for beauty industry


strategy | sharing beauty with all

With All

The aim of the sustainable transformation programme “Sharing Beauty With
All”, launched in 2013, is to make L’Oréal a model company in terms of sus-
tainable innovation, production, consumption, and in sharing its growth with all

group stakeholders.


Sustainable Innovation Sustainable consumption

By 2020, 100% of L’Oréal’s products L’Oréal is committed to helping its
will have an improved environmental customers make sustainable choic-
or social profile. Reducing the environ- es. The Group is using a multi-facet-
mental footprint of our formulas, pro- ed approach to achieve its objective:
tecting biodiversity through a sustain- aggregating information on the en-
able and responsible sourcing policy vironmental and social impact of its
for raw materials, eco-designed pack- products, evaluating the footprint of
aging and a zero deforestation com- each brand, raising awareness among
mitment are all levers used by L’Oréal consumers and making sustainable de-
to support sustainable innovation. velopment desirable.

Sustainable Production Sharing growth

L’Oréal has set itself a target of reduc- Sharing its growth with internal and
ing the environmental footprint of its external stakeholders is a priority for
plants and distribution centres by 60% L’Oréal. The Group helps people from
by 2020, compared with 2005. Reduc- underprivileged communities gain ac-
ing greenhouse gas emissions in abso- cess to employment through multiple
lute terms, lowering water consump- programmes, involves and empowers
tion and waste generation per unit of its suppliers through its sustainable
finished product and limiting the im- development policy and offers its em-
pacts of transportation have all become ployees excellent benefits worldwide in
fundamental criteria for industrial per- terms of health insurance and welfare
formance at L’Oréal. protection.


strategy | spot 1 S
Developed by the teams at L’Oréal O
with the support of international ex- T
perts, SPOT(1) compiles informa- 1
tion on almost 10,000 ingredients,
all packaging materials, supplier data
and all the components of product
life cycles. Once the criteria have been
established, they are aggregated and
weighted to calculate a consistent, us-
able score. SPOT is now fully integrat-
ed into the product design process and
can be used to assess and improve their
impact on the environment.


A Global Leader In participation of L’Oréal employees in
Sustainable Development the Group’s Citizen Day. This initia-
tive, which has been organised yearly
L’Oréal has been recognised for the since 2010, gives L’Oréal employees
third consecutive year as a global the opportunity to devote a full day of
leader in sustainable development by work to supporting social and environ-
CDP(2), achieving an “A” score for mental organisations and their bene-
carbon emissions, managing water ficiaries. Citizen Day is a pillar of the
consumption in a sustainable way and Group’s corporate culture and a shared
protecting forests in its supply chain source of pride, but it is also very much
– the three themes covered by CDP’s appreciated by the organisations: 80%
rankings. Every year, CDP assesses of them referred to at least one activ-
the performance of almost 6,800 com- ity they could not have accomplished
panies in these three areas, awarding without L’Oréal’s support. See you
them a score of “A” to “D”. L’Oréal next year for the 10th anniversary!
is the first company to have received
three “A” ratings three years in a row Supporting Women Through
Ups and Downs
Towards A Rational Use
of Plastics 90% of cancer patients who benefit-
ed from beauty treatments feel they
Plastic has become a major environ- helped them to think about things
mental issue and an increasing concern other than their illness and boosted
for both L’Oréal and its stakeholders. their confidence(1). With its “Beau-
As part of its packaging optimisation ty for a Better Life” programme, the
policy, the Group is implementing a L’Oréal Corporate Foundation strives
series of actions designed to reduce to ensure broader access to beauty and
the weight and dimensions of packag- wellness treatments and to profes-
ing, but also to replace commonly used sionalise socio-aesthetics as applied to
materials with alternatives from recy- oncology. The Foundation also contin-
cled or renewable resources at every ues its work with the “For Women in
opportunity. In 2018, 8,705 tonnes of Science” programme, in partnership
post-consumer recycled plastic (PCR) with UNESCO. Every year, the pro-
replaced virgin materials, an increase of gramme awards 280 grants to doctoral
19% compared with 2017. and post-doctoral researchers and rec-
ognises five scientists for their remark-
Citizen Day 2018: Together For able scientific wor
a Better World!
In 2018, over 855 local organisations
in 63 countries benefited from the

strategy | human relations


an 25

strategy | top 10 new extra-financial investment criteri
on. The award recognises the Group’s
At L’Oréal the role of Human commitment to encourage women
Relations is to support the all over the world, both in terms of
Group’s growth and transfor- equal access to promotion and training
mations, in the firm belief that, now and reducing differences in pay lev-
and in the future, it is the company’s els. L’Oréal has also been included in
employees who really make things the Top 100 of the Bloomberg Gen-
happen. Year after year, the attractive- der-Equality Index 2018, based on the
ness of L’Oréal continues to grow. But strength of corporate commitment to
resting on our laurels is not an option. gender equality in the workplace
We are facing a dual challenge. On the
one hand, we must preserve L’Oréal’s Everyday Committment To
traditional strengths and appeal: inter- Duversity and Inclusion
national careers, internal promotion,
a unique social model and so on. On Year after year, the Group is actively
the other, we must keep on reinvent- reasserting its commitment to promote
ing ourselves to keep pace with a world the employability of disabled people.
that is rapidly changing: in which the In 2018, Diversity Week culminated
digital “big bang” is creating new pos- in the 10th annual Disability Awards,
sibilities and forms of employment an event focused on the inclusion of
while accelerating the battle for the disabled people. Hair salons that are
best talent. 100% accessible, mental health aware-
Moreover, the relationship to work ness raising campaigns, special training
itself is being redefined, with new de- courses for young people with learning
mands in terms of work-life balance. difficulties, beauty tutorials in sign lan-
Leadership styles and management guage… The 65 projects spanned all
methods are called into question by fields of disability inclusiveness.
generations who are eager to assume
new responsibilities and who are also Employee Share Ownership:
looking to be trusted to get things Strengthening Committment
done. Innovating to respond to new To The L’oreal Adventure
aspirations One of our responses has
been the corporate project Simplicity L’Oréal offered its employees the
and the managerial transformation it is chance to take a stake in the compa-
inspiring. With projects such as Dis- ny’s financial capital via an employee
rupt HR, an idea incubator and accel- share ownership plan. This is a first
erator, Human Relations is innovating in the Group’s history, and employ-
and taking advantage of digital tech- ees were quick to take up the offer. In
nologies to respond more effectively recognition, the Group was awarded
to aspirations. As these initiatives take the Grand Prix CAC All Tradable by
on growing importance, our Human FAS(1) for its “outstanding entry into
Relations increasingly acts as a coach employee share ownership inside and
and facilitator at the heart of a triptych outside France and its sound interna-
comprising the Human Relations Di- tional governance.”
rector, managers and employees.

The Gender Equality Leader
In Europe

L’Oréal has been awarded First Prize
in the European category of the 2018
Equileap ranking, which focuses on
gender equality in the workplace as a


1st Top 10

company in Europe in terms L’Oréal is in the Top 10 of the Thomson Reuters Diversity and
of gender equality in Eq- Inclusion index
uileap ranking





performance | the world of beauty in 2018

The World of Beauty in

22 00 11 88

The global cosmetics market continued to grow steadily,
spurred on by the limitless diversity of consumer aspirations
and by innovation. This constant growth can be explained
by the very nature of the cosmetics sector, which addresses
a need that has been around since the beginning of human
history: the quest for beauty.


+5.5% Estimated at more than 200 billion eu-
ros(2), the worldwide cosmetics market is
underpinned by the continuous growth in
online beauty spending, the expansion of
social networks, consumer interest in new,
different and premium products, the ac-
celeration of urbanisation, the increase in
the number of seniors worldwide, and the
growth of the upper middle classes.


5 2013 2014 2015 2016 2017 2018

2009 2010 2011 2012

Breakdown of the market

By By
Business Geographic

skincare 39% fragrences 11% asia pacific 39% latin america 9%
haircare 21% hygiene products 10%
makeup 21% north america 25% eastern europe 6%

western europe 18% africa, middle east 3%


strategy | focus on the skincare market


The skincare market accelerated sharp-
ly in 2018, boosted by the expansion of
the upper middle classes all over the
world and especially in Asia, where
consumers are both knowedgeable and
enthusiastic about this category.


40%Nearly Nearly

of the beauty market(1) 60%

of worldwide cosmetics

market growth

growth of the skincare market ~ +9%
compared to the overall beauty market growth






skincare market
global cosmetics market


strategy | loreal in figures

€26.9Bn +7.1%
Sales in 2018
Like-for-like sales growth

By By By
Division Geographic Business

Consumer Products 44.7% Western Europe 29.9% Skincare 31.8%
North America 26.9% Makeup 27.4%
L’Oréal Luxe 34.8% Asia Pacific 27.5% Haircare 16.2%
Latin America 6.6% Hair colouring 10.9%
Professional Products 12.1%

Active Cosmetics 8.4%

€3Bn 11% +40.6%

of sales in e-commerce of consolidated sales in like-for-like growth in
e-commerce e-commerce


FiguresL’Oréal in


strategy | loreal in figures 26,937
2017 18.3%
2016 18%
2015 17.6%
2014 17.4%



OPERATING PROFIT Growth in operating profit









(IN MILLION OF EUROS) Growth in net profit exclud-
ing non-recurring items after
non-controlling interests

2018 3,988






strategy | our “sharing beauty with all” indicators

“Sharing Beauty

With All”

The social and environmental responsibility programme “Sharing Beauty With
All”, launched in 2013, is aimed at making L’Oréal a model company in terms of
sustainable innovation, production and consumption, and in sharing its growth

with all the Group’s stakeholder.



of new products in 2018 -77%
have an improved environmental

or social profile(1)

- 37% 77% reduction in CO2 emissions - 48%
in absolute value in plants and
reduction in waste generation distribution centres since 2005
since 2005
3“A” reduction in water
consumption since 2005

63,584 ratings from CDP(2), for reduc- 88%
ing carbon emissions, managing
people from socially or water sustainably and protecting of brands have assessed their
economically disadvantaged environmental or social impact
communities gained access to forests in the supply chain
employmen 83%
of the Group’s permanent em-
of the Group’s strategic suppli- ployees have health insurance in
ers(3) have been assessed and line with best practices in their
selected on the basis of their
country of residence(4)
environmental and social


Worldwide Advances
Worldwide Advances
Worldwide Advances
Worldwide Advances
Worldwide Advances
Worldwide Advances
Worldwide Advances
Worldwide Advances
Worldwide Advances
Worldwide Advances



worldwide advances North
Europe The Consumer Products Division re-
mains on track, and increased its mar-
In 2018, Western Europe was affect- ket share in the makeup and hair colour
ed by the sluggishness of some mar- segments, thanks to strong perfor-
kets, including France and the Unit- mances by L’Oréal Paris, Maybelline
ed Kingdom, and by a slowdown in New York and Essie. In Luxury, skin-
the makeup category. L’Oréal Luxe is care is a highly dynamic segment, with
outperforming its market, thanks to Kiehl’s and IT Cosmetics outperform-
the dynamism of Lancôme, Giorgio ing the market. L’Oréal Luxe is also
Armani and Kiehl’s, and the same is growing faster than its market in the
true of the Active Cosmetics Divi- fragrance category. In the Professional
sion, thanks to the rapid growth of Products Division, growth is driven by
La Roche-Posay and the roll-out of the Redken and Matrix brands, and by
CeraVe. The Consumer Products Di- the acquisition of Pulp Riot. The up-
vision is strengthening its positions in turn in the sales of the iconic Kérastase
makeup, reflecting the good results of brand is also worth noting. The Active
the Maybelline New York and Essie Cosmetics Division posted a good per-
brands, and more recently in skincare, formance with growth close to +20%,
thanks to L’Oréal Paris anti-ageing thanks to its brands CeraVe, Skin-
products and Garnier cleansing. Ceuticals, La Roche-Posay and Vichy,
which delivering double-digit growth.

Growth was driven by all four Divi-
sions, but especially by Active Cos-
metics. Across the countries, Turkey,
Ukraine, Romania and the Czech Re-
public posted very dynamic growth.
E-commerce(1) is growing very quick-
ly, by more than 50%.


Latin Asia
America Pacific

The L’Oréal Luxe and Active Cos- All four Divisions are winning mar-
metics Divisions are posting strong ket share. The dynamism of Chinese
growth, and winning market share. In consumers, combined with the good
Brazil, the Professional Products Divi- performance of premium brands,
sion is growing strongly, while the per- and the rapid growth in several other
formance of the Consumer Products South-East Asian markets, as well as
Division reflects ongoing challenges, in Travel Retail, were the Zone’s main
but improved in the second half. The growth drivers. The four Divisions
adjustment on 1 July to allow for hy- posted robust fourth-quarter figures,
perinflation in Argentina had a nega- thanks to the success of Singles’ Day
tive impact of -2.0% like-for-like on (11/11) sales in China. The acquisition
the Zone’s annual growth. of Stylenanda in June strengthened the
Group’s position in the Zone.
Middle East

The Zone recorded growth, despite the
unfavourable geopolitical context and
sluggish markets, especially in the
Middle East. Egypt and Morocco
posted good growth, and all Divisions
increased their market share. There was
positive development in South Africa
and Kenya, thanks in particular to the
Consumer Products Division and the
launch of the Mixa bodycare range.


worldwide advances | acquisitions




Since it was founded over a century ago, L’Oréal has built a palette of iconic and
complementary brands through targeted acquisitions. This portfolio of global
brands – the richest and most diverse in the beauty industry – drives the Group’s
long-term growth. This year, L’Oréal integrated brands that represent and respond
to the major trends in the beauty world: the luxury aspirations of Asian consumers
and Millennials(2) (signature of the Valentino licence and renewal of the Gior-
gio Armani licence); the quest for natural and organic beauty products (Logocos
Naturkosmetik AG); the success of Korean beauty, also known as K-beauty (Sty-
lenanda); hair colour in the digital age (Pulp Riot); and augmented beauty through
new technologies (ModiFace), the return to the roots of a growing brand (acquisi-
tion of the thermal spa La Société des Thermes de La Roche-Posay).


worldwide advances | brands overview

Brands Overview

consumer products
l’oreal luxe

professional products
active cosmetics


worldwide advances | consumer products

L’Oréal’s brands are organised by Division,
each developing a specific

Vision of Beauty

by consumption universe and distribution



Click to View FlipBook Version