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Growth acceleration1Another year of market share gains
Record operating margin

  • Sales: 25.84 billion euros
    • +2.3% based on reported figures
    • +5.1% at constant exchange rates
    • +4.7% like-for-like1
  • Operating profit: 4.54 billion euros, representing 17.6% of sales
  • Earnings per share2: 6.46 euros, an increase of +4.6%
  • Net cash flow3: 3.3 billion euros, an increase of +9.5%
  • Dividend4: 3.30 euros, an increase of +6.45%

Watch the video of the Financial Information Meeting held on 10 February 2017.

The Board of Directors of L'Oréal met on 9 February 2017, under the chairmanship of Jean-Paul Agon and in the presence of the Statutory Auditors. The Board closed the consolidated financial statements and the financial statements for 2016.


Commenting on the annual results, Jean-Paul Agon, Chairman and CEO of L'Oréal, said:


"L'Oréal achieved another good year, with a significant growth in sales and robust profits.


In a generally favourable cosmetics market, the Group has once again accentuated its worldwide beauty leadership thanks to market share gains in its three main geographic Zones.


All the Divisions recorded sales growth, especially L'Oréal Luxe which is significantly strengthening its positions. The Active Cosmetics Division also performed well, winning market share around the world. As announced, the Consumer Products Division, driven by its successful strategic choices, saw a clear acceleration in sales and outperformed its market.   


As for the geographic Zones, L'Oréal has accelerated sales and increased its lead in North America. The Group has further accentuated its leadership in Europe, outperforming the market despite the difficult situation in France. Growth in the New Markets has remained solid.


In terms of results, operating margin and cash flows have set new records, confirming that our business model is set to deliver robust performance and create significant value.

2016 was also another year that strengthened L'Oréal's leadership in connected beauty. Our e-commerce5 sales rose by +33%, and the digital dynamism of our brands - in both communications and services - means they can develop increasingly strong and personalised interactions with consumers.


The strategic acquisition of IT Cosmetics, and the one in progress of CeraVe, strengthen our unique portfolio of brands and will more than ever enable us to meet our consumers' beauty aspirations. As part of this brand portfolio optimisation, it has been decided to explore all strategic options regarding The Body Shop's ownership in order to give it the best opportunities and full ability to continue its development. No decision has been taken so far.


All in all, the fundamentals of L'Oréal are unique advantages in the bright new world of beauty that is emerging: clearly defined mission and strategy, highly engaged expert teams, a global flotilla of emblematic brands, a long-haul investment in research and innovation, a critical engagement in digital, a unique, flexible and agile organisation, and a strong entrepreneurial culture.


In an economic context that is still volatile and uncertain, L'Oréal is confident that it will once again outperform the beauty market in 2017 and achieve another year of sales and profit growth."


The Board will also propose to the Annual General Meeting on Thursday 20 April 2017, the renewal of the tenure as Directors of Mrs Françoise Bettencourt Meyers and Mrs Virginie Morgon.


The tenure of Mr Peter Brabeck-Letmathe will expire at the end of the Annual General Meeting on 20 April 2017. Mr Jean-Paul Agon has expressed the Board's deep gratitude to Mr Peter Brabeck-Letmathe for his active participation in its work over the last twenty years: "Both visionary and pragmatic, Peter Brabeck-Letmathe has made an outstanding contribution to our Board. His unfailing support, his strategic input and his insistence on the highest standards of governance have been most valuable. His penetrating consumer insights, his multi-cultural openness and his rigorous intellectual approach have been strong assets that have helped L'Oréal to take up the key challenges of the last two decades."
The Board will propose to the Annual General Meeting the appointment as director of Mr Paul Bulcke.  



Moreover, the Board of Directors has decided, under the authorisation voted by the Annual General Meeting of 20 April 2016, to set up a share buyback programme amounting to a maximum of 500 million euros during the first half of 2017. All the shares bought back will be cancelled.

2016 sales

Like-for-like, i.e. based on a comparable structure and constant exchange rates, the sales trend of the L'Oréal Group was +4.7%.
The net impact of changes in the scope of consolidation amounted to +0.4%.
Currency fluctuations had a negative impact of -2.8%.
Growth at constant exchange rates was +5.1%.
Based on reported figures, the Group's sales, at 31 December 2016, amounted to 25.84 billion euros, an increase of +2.3%.

Sales by operational Division and Geographic Zone

  4th quarter 2016   At 31 December 2016
  Growth   Growth
  €m Like-for-like Reported €m Like-for-like Reported
By Operational Division            
Professional Products 866.8 2.1% 2.2% 3,399.7 1.8% 0.0%
Consumer Products 2,979.0 4.2% 3.3% 11,993.4 4.4% 1.3%
L'Oréal Luxe 2,208.7 7.1% 8.4% 7,662.4 6.9% 6.0%
Active Cosmetics 413.6 6.5% 6.5% 1,860.7 5.7% 2.4%
Cosmetics Divisions total 6,468.1 5.0% 5.0% 24,916.3 4.9% 2.6%
By Geographic Zone            
Western Europe7 2,027.5 4.6% 1.7% 8,008.0 2.4% 0.5%
North America 1,883.6 6.3% 10.4% 7,098.8 5.8% 6.7%
New Markets, of which: 2,556.9 4.4% 4.1% 9,809.5 6.3% 1.5%
Asia, Pacific7 1,445.7 1.3% 1.7% 5,635.4 3.6% 1.8%
Latin America 493.5 8.5% 5.9% 1,838.0 11.1% -1.8%
Eastern Europe 428.2 11.9% 11.2% 1,571.5 10.4% 2.7%
Africa, Middle East 189.4 2.8% 2.8% 764.5 7.9% 5.0%
Cosmetics Divisions total 6,468.1 5.0% 5.0% 24,916.3 4.9% 2.6%
The Body Shop 321.3 0.8% -6.3% 920.8 0.6% -4.8%
Group total 6,789.3 4.8% 4.4% 25,837.1 4.7% 2.3% 


The Professional Products Division recorded growth of +1.8% like-for-like. It is stable based on reported figures. 

In a market that is gradually improving, the Division posted a contrasted year, with good growth in Europe, Africa, Middle East and Latin America, but a mixed performance in North America. The top growth contributor countries are India, Russia and the United Kingdom.
The Division's four major brands are all growing. Hair colour, the top growth contributor, is maintaining its momentum thanks to the core franchises Shades EQ by Redken, SoColor Beauty and Color Sync by Matrix, and Inoa and Dia by L'Oréal Professionnel. In skincare, the Decléor brand, which focuses on naturalness, has recorded double-digit growth.


The Consumer Products Division is strengthening its growth at +4.4% like-for-like and +1.3% based on reported figures. It is outperforming the global market. 

As announced, the Division's growth accelerated sharply in 2016 thanks to the success of its two strategic choices. First in make-up, the Division achieved double-digit growth thanks to the outstanding success of NYX Professional Makeup, clearly becoming a new major global make-up brand, and to the continuing development of Maybelline, L'Oréal Paris and Essie. Secondly, in haircare, with the worldwide roll-out of Ultra Doux and the success of key Elsève launches.
2016 was also a fine vintage for innovations in other categories, with the worldwide success in skincare of Micellar Cleansing Waters by Garnier as well as Pure Clay Masks and Magic Retouch in hair colour for L'Oréal Paris.
The Division has delivered an excellent performance in North America, where it is significantly strengthening its leadership. It is growing exceptionally strongly in the United Kingdom, and is also accelerating in Spain and Germany. The Division's expansion in the New Markets is continuing. 


L'Oréal Luxe posted growth of +6.9% like-for-like and +6.0% based on reported figures, with an excellent second half at +8.1% like-for-like. The Division is outperforming its market and has been further strengthened by the acquisition of two new brands: Atelier Cologne and IT Cosmetics. 

Yves Saint Laurent has achieved an exceptional year, with sales breaking the one billion euro mark, thanks to the strong dynamism of its make-up and success in fragrances, with Black Opium and the new women's perfume Mon Paris. Giorgio Armani had a very good year, driven by make-up and the success of the men's fragrance Code Profumo. Urban Decay, today in 45 countries, is growing strongly, and is launching Vice Lipstick worldwide. The rise of Kiehl's in skincare is continuing. Lancôme, the number one luxury brand for women, has posted another year of growth with notably Absolu Rouge, Énergie de Vie skincare for Millennials8 and La Vie Est Belle, number one in Europe and already in the top 5 women's fragrances in the United States.
North America has achieved a very good year. In the New Markets, the Division recorded double-digit growth in China, Japan, Russia and several countries in South-East Asia. Western Europe performed very well, especially Spain and the United Kingdom.


With growth of +5.7% like-for-like and +2.4% based on reported figures, the Active Cosmetics Division ended the year on a very dynamic note. It is further increasing its share of the worldwide market.

All the Geographic Zones have contributed to growth, with outstanding performances in North America and Latin America.
La Roche-Posay is posting its seventh consecutive year of double-digit growth, with a strong contribution from its Effaclar, Cicaplast and Toleriane franchises. Vichy is rolling out Slow Âge, an innovative facial skincare line stemming from advances made by L'Oréal Research in the exposome field. SkinCeuticals is accelerating both in its home market and internationally, and its Triple Lipid Restore 2:4:2 launch is very well received. Lastly, Roger&Gallet is growing in Asia, particularly in Japan, and more recently in China.

Multi-division summary by Geographic Zone


Despite the continuing difficult environment in France, Western Europe posted growth of +2.4% like-for-like, and +0.5% based on reported figures, and is further extending its leadership. The Consumer Products Division is strengthening its positions. The United Kingdom and Spain had a particularly dynamic year, while Germany and Italy delivered solid growth, outperforming their respective markets. Make-up is the number one growth driver, fuelled especially by the NYX Professional Makeup and Urban Decay brands.


In a dynamic market, North America posted growth of +5.8% like-for-like and +6.7% based on reported figures. L'Oréal Luxe is growing faster than its market, driven by the strong growth of Urban Decay and Yves Saint Laurent, as well as good performances from Lancôme and IT Cosmetics. The Consumer Products Division is significantly strengthening its leadership: the continuing success of NYX Professional Makeup has been added to the momentum of Maybelline and Essie, and Garnier is accelerating thanks to its Whole Blends (Ultra Doux) and Micellar Cleansing Waters launches.


Asia, Pacific: this Zone recorded growth of +3.6% like-for-like and +1.8% based on reported figures. In Northern Asia, Taiwan and South Korea are posting good growth. In China, L'Oréal Luxe maintains its momentum, but the Consumer Products Division, in a transitional phase, has been slowed down by the difficulties of Magic and the progressive adjustment to the evolving distribution channels. In Southern Asia, growth remains sustained thanks, in particular, to dynamic trends in Australia and Indonesia, and the development of NYX Professional Makeup and Garnier.

Latin America: the Zone posted growth of +11.1% like-for-like, and -1.8% based on reported figures. The acceleration is continuing in Mexico, Colombia and Peru, thanks to the strong growth of the make-up brands Vogue, Maybelline and L'Oréal Paris, and the good results of L'Oréal Professionnel and Kérastase. In Brazil, the Active Cosmetics Division is outperforming the market, and the Consumer Products Division is taking advantage of the successful integration of Niely.

Eastern Europe: the Zone recorded growth of +10.4% like-for-like and +2.7% based on reported figures. Russia, Poland and Ukraine are driving growth in this Zone. The Professional Products Division, L'Oréal Luxe and Consumer Products are outperforming their markets.

Africa, Middle East: sales growth amounted to +7.9% like-for-like and +5.0% based on reported figures. Activity in the Zone slowed down at the end of the year, particularly because of Saudi Arabia where the market decelerated. On the other hand, Egypt and Pakistan are maintaining very strong momentum. Against this background, the Divisions together have gained market shares.


The Body Shop recorded growth of +0.6% like-for-like, and -4.8% based on reported figures. Momentum was good in Europe, especially in the United Kingdom, the brand's home market, and in Latin America where The Body Shop opened up recently in Chile. The brand has also benefited from sustained growth in e-commerce. Skincare growth is continuing, with a strong contribution from the range of five new facial skincare masks. The difficult context in Saudi Arabia and Hong Kong, however, is continuing to impact overall performance.

Important events during the period 1/10/16 to 31/12/16 and a post-closing event


  • On 25 October 2016, for the fourth consecutive year, L'Oréal has been recognised in the annual CDP9 rankings. This year, L'Oréal was awarded the best possible score, an A rating, in each field of environmental protection: combating climate change, sustainable water management and preventing deforestation.

  • On 27 December 2016, L'Oréal announced a strategic investment in the early stage fund Partech International Venture VII managed by Partech Ventures, a venture capitalist firm headquartered in Paris. This investment complements L'Oréal's comprehensive strategy to connect to the world's hottest startup scenes and to participate in the financing of the most promising early stage digital businesses.

  • On 10 January 2017, L'Oréal announced the signing of a definitive agreement with Valeant to acquire the skincare brands CeraVe, AcneFree and Ambi for a cash purchase price of 1.3 billion US dollars. The three brands CeraVe, AcneFree and Ambi have annualised combined revenue of approximately 168 million US dollars.

2016 Results

Audited financial statements, certification in progress.



Operating profitability at 17.6% of sales

Consolidated profit and loss accounts: from sales to operating profit.
  2015 2016
  €m % sales €m % sales
Sales 25,257.4 100.0% 25,837.1 100.0%
Cost of sales -7,277.4 28.8% -7,341.7 28.4%
Gross profit 17,980.0 71.2% 18,495.4 71.6%
R&D expenses -794.1 3.1% -849.8 3.3%
Advertising and promotion expenses -7,359.6 29.1% -7,498.7 29.0%
Selling, general and administrative expenses -5,438.6 21.5% -5,607.0 21.7%
Operating profit 4,387.7 17.4% 4,539.9 17.6%

Gross profit, at 18,495 million euros, came out at 71.6% of sales, compared with 71.2% in 2015, that is an increase of 40 basis points. 

Research and Development expenses, at 3.3% of sales, have increased in relative value. 

Advertising and promotion expenses came out at 29.0% of sales, close to the 2015 level. 

Selling, general and administrative expenses, at 21.7% of sales, have come out at a slightly higher level compared to 2015. 

Overall, operating profit, at 4,540 million euros, has grown by 3.5%, and amounts to 17.6% of sales. 

Operating profit by Operational Division

  2015 2016
  €m % sales €m % sales
By Operational Division        
Professional Products 678.5 20.0% 688.6 20.3%
Consumer Products 2,385.8 20.1% 2,417.1 20.2%
L'Oréal Luxe 1,497.5 20.7% 1,622.8 21.2%
Active Cosmetics 414.7 22.8% 431.5 23.2%
Cosmetics Divisions total 4,976.4 20.5% 5,160.0 20.7%
Non-allocated10 -643.6 2.6% -653.9 2.6%
The Body Shop 54.8 5.7% 33.8 3.7%
Group 4,387.7 17.4% 4,539.9 17.6%

The profitability of the Professional Products Division, at 20.3%, is up by 30 basis points. 

The profitability of the Consumer Products Division came out at 20.2%, representing an increase of 10 basis points compared with 2015. 

The profitability of L'Oréal Luxe, at 21.2%, strongly increased in 2016, which is an increase of 50 basis points. 

At Active Cosmetics Division, there was a further increase in profitability reaching 23.2%. 

The profitability of The Body Shop in 2016 fell to 3.7%.

Profitability by Geographic Zone

  2015 2016
  €m % sales €m % sales
Operating profit        
Western Europe11 1,800.5 22.6% 1,831.5 22.9%
North America 1,256.8 18.9% 1,392.3 19.6%
New Markets11 1,919.2 19.9% 1,936.2 19.7%
Cosmetics Zones total12 4,976.4 20.5% 5,160.0 20.7%

Profitability in Western Europe improved by 30 basis points to 22.9%. 

In North America, profitability strongly increased to 19.6%, representing +70 basis points. 

And in the New Markets, profitability fell slightly to 19.7% due to the negative impact of currency fluctuations in Latin America. 

Net profit

Consolidated profit and loss accounts: from operating profit to net profit excluding non-recurring items.
€m 2015 2016 % change
Operating profit 4,387.7 4,539.9 +3.5%
Financial revenues and expenses excluding dividends received -13.8 -19.3  
Sanofi dividends 336.9 346.5  
Profit before tax excluding non-recurring items 4,710.8 4,867.1 +3.3%
Income tax excluding non-recurring items -1,219.7 -1,216.8  
Net profit excluding non-recurring items of equity consolidated companies - -0.1  
Non-controlling interests -1.3 -3.0  
Net profit excluding non-recurring items after non-controlling interests13 3,489.8 3,647.2 +4.5%
EPS14 (€) 6.18 6.46 +4.6%
Net profit after non-controlling interests 3,297.4 3,105.8  
Diluted EPS after non-controlling interests (€) 5.84 5.50  
Diluted average number of shares 564,891,388 564,509,135  

Finance expenses came out at 19 million euros. 

Sanofi dividends amounted to 346 million euros. 

Income tax excluding non-recurring items amounted to 1,216 million euros. This represents a tax rate of 25.0%, slightly lower than that of 2015 which came out at 25.9%. 

Net profit excluding non-recurring items after non-controlling interests amounted to 3,647 million euros. 

Earnings per Share, at 6.46 euros, is up by 4.6%. 

Non-recurring items after non-controlling interests amounted to 541 million euros net of tax, which corresponds mostly to the Magic and Clarisonic impairment impact operated during the first half of 2016, and to the French tax of 3.0% on dividends distributed. 

Net profit came out at 3,105 million euros.

Cash flow statement, Balance sheet and Cash position

Gross cash flow amounted to 4,717 million euros, an increase of 7.2%. 

The working capital requirement increased very modestly by 12.7 million euros. 

Investments amounted to 1,386 million euros, representing 5.4% of sales, higher than in 2015, when it represented 4.6% of sales. 

The net cash is positive again and came out, at 31 December 2016, at 481 million euros. 

The balance sheet remains particularly solid with shareholders' equity amounting to 24.5 billion euros.

Proposed dividend at the Annual General Meeting of April 20, 2017

The Board of Directors has decided to propose to the Shareholders' Annual General Meeting of 20 April 2017 a dividend of 3.30 euros per share, an increase of +6.45% compared with the dividend paid in 2016. The dividend will be paid on 3 May 2017 (ex-dividend date 28 April 2017 at 0:00 a.m., Paris time).

Share capital

As of 31 December 2016, the capital of the company is formed by 561,855,741 shares, each with one voting right.


"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 2016 Annual 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

Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel.: +33 1 47 56 83 02
[email protected] 

Financial analysts and Institutional investors 
Mrs Françoise LAUVIN
Tel.: +33 1 47 56 86 82
[email protected] 
Tel.: +33 1 47 56 76 71
[email protected]

Tel.: +33 1 47 56 70 00


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 mobile app, alternatively, call +33 1 40 14 80 50.

1 Like-for-like: based on a comparable structure and identical exchange rates.
2 Diluted earnings per share, based on net profit, excluding non-recurring items, after non-controlling interests.
3 Net cash flow = Gross cash flow + changes in working capital - capital expenditure.  
4 Proposed at the Annual General Meeting of 20 April 2017.
5 Sales achieved on our brands' own websites + estimated sales achieved by our brands corresponding to sales through our retailers' websites (non-audited data); like-for-like growth.
6 The L'Oréal Registration Document filed with the AMF (Autorité des Marchés Financiers) on 15 March 2016 includes, on pages 323 and 324, the other pieces of information that must appear in the share buyback programme description pursuant to Article 241-2 of the General Regulation of the AMF.
7 As of 1 July 2016, the Asian Travel Retail business of the Consumer Products Division, previously recorded under the Western Europe Zone, was transferred to the Asia, Pacific Zone. All figures for earlier periods have been restated to allow for this change.
8 Generation born between 1980 and 2000.
9 CDP is an independent not-for-profit organisation that provides a global system for measuring and disclosing environmental information and evaluates companies in terms of their efforts to combat climate change.
10 Non-allocated = Central Group expenses, fundamental research expenses, stock options and free grant of shares expenses and miscellaneous items. As a % of cosmetics sales.
11 As of 1 July 2016, the Asian Travel Retail business of the Consumer Products Division, previously recorded under the Western Europe Zone, was transferred to the Asia, Pacific Zone. All figures for earlier periods have been restated to allow for this change.
12 Before non-allocated.
13 Net profit excluding non-recurring items after non-controlling interests does not include impairment of assets, restructuring costs, tax effects or non-controlling interests.
14 Diluted earnings per share, based on net profit, excluding non-recurring items, after non-controlling interests.


L'Oréal Group sales 2015/2016 (€ millions)


  2015 2016
First quarter:    
Cosmetics Divisions 6,243.9 6,352.4
The Body Shop 192.4 200.1
First quarter total 6,436.3 6,552.4
Second quarter:    
Cosmetics Divisions 6,163.1 6,143.6
The Body Shop 219.5 198.5
Second quarter total 6,382.6 6,342.2
First half:    
Cosmetics Divisions 12,407.0 12,496.0 
The Body Shop 411.9 398.6 
First half total 12,818.9 12,894.6 
Third quarter:    
Cosmetics Divisions 5,725.1  5,952.2
The Body Shop 212.5  200.9
Third quarter total 5,937.5  6,153.2
Nine months:    
Cosmetics Divisions 18,132.1  18,448.2
The Body Shop 624.3  599.5
Nine months total 18,756.4  19,047.8
Fourth quarter:    
Cosmetics Divisions 6,158.1  6,468.1
The Body Shop 342.9  321.3
Fourth quarter total 6,501.0  6,789.3
Full year:    
Cosmetics Divisions 24,290.2  24,916.3
The Body Shop 967.2  920.8
Full year total 25,257.4  25,837.1