- Overall like-for-like sales increased by 5.3%, below the estimated 6.02%.
- Professional products sales rose by 0.9%, lower than the 1.33% forecast.
- Consumer products sales grew by 6.7%, falling short of the 7.66% projection.
- L’Oreal Luxe sales were up by 2.8%, slightly above the 2.66% estimate.
- Dermatological beauty sales surged by 10.8%, well below the expected 17.4%.
- North America sales increased by 3.4%, closely matching the 3.48% estimate.
- North Asia sales declined by 2.4%, against an expected drop of 0.62%.
- Europe sales rose by 9.7%, surpassing the 8.46% forecast.
- South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa sales grew by 14%, just under the 14.4% estimate.
- Latin America sales went up by 12.3%, below the 15.8% estimate.
- Total sales were €10.88 billion, slightly above the €10.77 billion estimate.
- Professional products sales amounted to €1.18 billion, higher than the €1.16 billion expected.
- Consumer products sales totaled €4.15 billion, exceeding the €4.06 billion forecast.
- L’Oreal Luxe sales reached €3.77 billion, more than the €3.72 billion estimate.
- Dermatological beauty sales were €1.78 billion, below the €1.84 billion estimate.
- First half results showed an operating profit of €4.60 billion, above the €4.56 billion estimate.
- Operating margin was 20.8%, slightly higher than the 20.7% forecast.
- Adjusted EPS was €6.98, missing the €7.07 estimate.
- First half like-for-like sales grew by 7.3%, compared to the 7.64% estimate.
- The company has 13 buy ratings, 13 hold ratings, and 4 sell ratings from analysts.
L’Oreal SA on Smartkarma
Analysts on Smartkarma, like Steve Zhou, CFA, are covering L’Oreal SA, the world’s largest beauty company with a 15% global market share. In the report “Pair Trade: L’Oreal / Shiseido”, it is highlighted that L’Oreal has a well-balanced geographic and category exposure. Despite being excellently managed and outperforming the global beauty industry growth by 5% over the past 3 years, concerns arise about potential slowing growth. With L’Oreal’s forward PE ratio at 34x, trading at a premium of nearly 100% compared to the European consumer staples average, it stands at a multi-decade high.
Analysts like Steve Zhou, CFA, provide valuable insights into L’Oreal SA‘s market position and financial performance on platforms like Smartkarma. The report emphasizes L’Oreal’s dominant standing in the beauty industry, surpassing competitors significantly in market share. While the company has delivered impressive growth in recent years, trading at a high forward PE ratio raises questions about sustainability. Investors are keen to see how L’Oreal navigates potential growth challenges in the future amidst its premium valuation in the market.
A look at L’Oreal SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, L’Oreal SA shows a positive long-term outlook. The company scores well in growth and resilience, indicating strong potential for expansion and the ability to withstand economic downturns. Additionally, L’Oreal SA demonstrates decent momentum, suggesting a steady upward trend in performance. While the value and dividend scores are not as high, the overall outlook for L’Oreal SA remains favorable due to its strength in growth and resilience.
L’Oreal SA is a leading manufacturer and distributor of health and beauty products, catering to both professional hairdressers and consumers. The company offers a wide range of products including colorants, styling products, cosmetics, skin care items, perfumes, and dermatological products. With solid scores in growth and resilience, L’Oreal SA is positioned well for long-term success in the competitive beauty industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
