L'Oreal SA
(OTCPK:LRLCF)
$
423.926
4.736 (1.13%)
Market Cap: 227.30 Bil
Enterprise Value: 226.27 Bil
PE Ratio: 32.39
PB Ratio: 6.82
GF Score: 97/100 
Half Year 2024 L'Oreal SA Earnings Call Transcript
Jul 31, 2024 / 07:00AM GMT
Release Date Price:
$435
(+2.35%)
Key Points
Positve
- L'Oreal SA (LRLCF) reported a strong like-for-like sales growth of 7.3% in the first half of 2024, outperforming the global beauty market growth of 5-6%.
- The company achieved a record gross margin of 74.8%, up 50 basis points, and an operating margin of 20.8%, up 10 basis points.
- Net profit increased by 8.8% to EUR 3.65 billion, demonstrating robust financial performance.
- All divisions reported growth on a like-for-like basis, with Dermatological Beauty leading at 16.4% growth.
- Emerging markets showed dynamic growth at 14.7%, with significant contributions from SAPMENA-SSA and Latin America.
Negative
- Foreign exchange had a negative impact of 2.3% on sales due to the appreciation of the euro against key currencies.
- Sales in North Asia declined by 1.7%, primarily due to renewed weakness in the mainland Chinese market.
- Travel retail continued to weigh on growth in the first half, although momentum is improving sequentially.
- SG&A expenses increased by 12.3%, partly due to the consolidation of Aesop and investments in tech and data.
- The net financial result was a negative EUR 131 million, impacted by the acquisition of Aesop and the cost of servicing foreign currency debt in Argentina.
Operator
Good morning to all, and thank you for joining us for the presentation of our first-half 2024 results. I'm here with our CEO, Nicolas Hieronimus.
Nicolas Hieronimus;Oreal SA;Chief Executive Officer
L;Director
'- -
Good morning.
Operator
Our CFO, Christophe Babule
Christophe Babule;Oreal SA;Chief Financial Officer
L;Member of the Executive Committee
'- -
Hello, good morning.
Operator
And the Global Head of Corporate Finance and Financial Communications, Laurent Schmitt.
Laurent Schmitt;Oreal SA;Global Head of Corporate Finance;Financial Communications
L
'-&
Good morning.
Operator
As always, Christophe will comment the first-half results. Nicolas will then share his takeaways from the first six months and tell you why we remain
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