Clichy, 9 February 2022 at 6.30 p.m.
2021 Annual Results
A HISTORIC YEAR: +16.1% GROWTH 1,
TWICE THE BEAUTY MARKET GROWTH
VERY STRONG INCREASE IN PROFITS
- Sales: 32.28 billion euros
- +16.1% like-for-like1
- +16.9% at constant exchange rates o +15.3% based on reported figures
- Sales growth compared to 2019: +11.3% like-for-like
- Record operating profit: 6.16 billion euros, 19.1% of sales
- Earnings per share 2: 8.82 euros, an increase of +20.9%
- Dividend 3: 4.80 euros, an increase of +20%
The L’Oréal Board of Directors met on 9 February 2022, 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 2021.
Commenting on the figures, Nicolas Hieronimus, Chief Executive Officer of L’Oréal, said:
“2021 was a historic year for L’Oréal. Thanks to the expertise, passion and commitment of our 85,400 L’Oréalians around the world, the Group achieved record growth of +16.1%1, twice that of the worldwide beauty market. L’Oréal gained market share in all Zones, Divisions and categories. Over two years, the Group achieved growth of +11.3% like-for-like, spectacularly outperforming a market that had returned almost to 2019 levels.
In 2021, all stars aligned for this historic performance.
In terms of Zones, North America made a strong comeback and joined North Asia as the primary growth contributor. In Europe, boosted by the Zone’s reorganisation, L’Oréal achieved significant market share gains and saw a return to 2019 levels. With an extremely volatile public health situation in SAPMENA-SSA4 and Latin America, L’Oréal demonstrated agility and delivered solid performance.
L’Oréal Luxe became the Group’s largest Division, with remarkable success in fragrances, while the Consumer Products Division, the largest Division by volume, strengthened its position, with noteworthy performance in makeup. The fast-growing Professional Products Division continued its far-reaching transformation and became truly omnichannel. With a portfolio of brands that perfectly matches consumers’ health aspirations, Active Cosmetics also achieved spectacular growth, doubling in four years.
- Like-for-like:based on a comparable structure and identical exchange rates.
- Diluted earnings per share, based on net profit, excluding non-recurring items, after non-controlling interests.
- Proposed at the Annual General Meeting of 21 April 2022.
- SAPMENA – SSA: South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa
In 2021, we again extended our digital lead: e-commerce5 grew by +25.7% 6, accounting for 28.9% of sales. We have been able to seize the opportunities offered by new digital channels. At the same time, we are continuing to digitalise points of sale as part of an integrated omnichannel strategy.
We are also pursuing our Beauty Tech transformation by investing in data and artificial intelligence, and by establishing strategic partnerships such as our alliance with Verily, to better understand and characterise skin and hair aging mechanisms.
L’Oréal’s exceptional growth, driven by superior innovations, as well as rigorous cost control, has enabled us to invest extensively in our brands and increase their appeal, while at the same time delivering record operating profit and an operating margin up 50 basis points.
We are also proud of our social and environmental performance, which reflects our ambition to grow responsibly and share value with all our stakeholders. First of all, with our employees, whom we associate with these exceptional results through a record redistribution of profit-sharing schemes. Furthermore, to promote youth employment, last year we offered more than 18,300 job opportunities to young people under 30 as part of our new global “L’Oréal For Youth” programme, which has an ambitious target of 25,000 opportunities per year from 2022 to 2025. Our efforts to support gender parity were also recognised by the Bloomberg Gender-Equality Index. In addition, L’Oréal USA, our largest subsidiary, achieved carbon neutrality for all its sites in 2021, some four years ahead of our L’Oréal for the Future commitments. L’Oréal is the only company in the world to have been awarded an AAA score by CDP six years in a row, for environmental leadership in tackling climate change, protecting forests and ensuring water security.
The end of the year was marked by the strategic transaction consisting of the buyback by L’Oréal of 4% of its own shares held by Nestlé, which strengthens our shareholder structure, a key asset in the Group’s long- term success.
In a global context that remains volatile at the beginning of the year, we are confident in our ability to outperform the market in 2022 and achieve another year of growth in both sales and profits.”
Annual General Meeting to be held on 21 April 2022
The Annual General Meeting will take place on 21 April 2022 at 10:00am. Shareholders will be invited through the usual channels. The meeting will take into account the latest developments in the currently changing public health conditions.
Shareholders are advised to check regularly the “Annual General Meeting” section on the loreal-finance.com website for updates concerning the Annual General Meeting.
Composition of the Board of Directors and its Committees
Meeting on 9 February 2022, the Board of Directors decided to propose to the Annual General Meeting of 21 April 2022 the renewal of the tenure as director of Mr Jean-Paul Agon, Mr Patrice Caine and Ms Belén Garijo for a four-year term.
If the Annual General Meeting approves Mr Agon’s renewed tenure as director, the Board meeting held after this Meeting will be asked to reappoint him in his capacity as Chairman of the Board of Directors.
If the Annual General Meeting approves the proposed resolutions, the Board of Directors will continue to be composed of 16 directors, i.e. 14 directors appointed by the Meeting and two directors representing the employees.
The balance in terms of independence and diversity will remain unchanged:
- Seven independent directors out of 14 directors appointed by the Annual General Meeting, i.e. 50%,
- Seven women and seven men out of 14 directors appointed by the Annual General Meeting, i.e. parity at 50%.
- Sales on our brands’ own websites + estimated sales by our brands via retailer websites (non-audited data).
- Like-for-like:based on a comparable structure and identical exchange rates.
Like-for-like, i.e. based on a comparable structure and identical exchange rates, the sales growth of the L’Oréal group was +16.1%.
The net impact of changes in the scope of consolidation was +0.8%.
Growth at constant exchange rates came out at 16.9%.
At the end of 2021, currency fluctuations had a negative impact of -1.6%.
Based on reported figures, the Group’s sales, at 31 December 2021, amounted to 32.28 billion euros, an increase of +15.3%.
Sales by Division and Geographic Zone
4th quarter 2021
At 31 December 2021
By geographic Zone
SAPMENA – SSA 7
7 SAPMENA – SSA: South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa
Summary by Division
The Professional Products Division ended the year with strong growth: +24.8% like-for-like and +22.2% based on reported figures.
The Division maintained its upward momentum and achieved historic market share gains across all Zones, with remarkable performance in the United States and mainland China in particular. The benefits of its omnichannel strategy were reflected in the recovery of in-salon sales, the exceptional performance of the SalonCentric distribution channel in the United States as well as a strong increase in e-commerce.
Haircare remained the number one growth category. Kérastase had a spectacular year, driven by the success of Curl Manifesto. L’Oréal Professionnel, thanks to its disruptive innovation Metal Detox, and Redken, with its new Acidic Bonding Concentrate line, also recorded strong growth. Hair colour made a very strong recovery, thanks in particular to the success of Shades EQ by Redken and Dialight by L’Oréal Professionnel.
As an industry leader, the Division is encouraging all its partner hairstylists to engage in the sustainable transition by launching its “Hairstylists for the Future” programme.
The Consumer Products Division grew by +5.6% like-for-like and +4.5% reported, with +6.5% like-for-likegrowth in the fourth quarter.
The Division gained market share in 2021. The momentum is strong in the United States as well as in high- potential markets, including India, Brazil, Mexico and Indonesia. Growth was driven by the development of e-commerce, in all the Zones and notably in emerging markets.
All major brands grew, with an exceptional run of innovations in all categories: in makeup, with Sky High mascara by Maybelline, which was the most successful launch in the brand’s history; in haircare, with premium innovations such as Dream Lengths Wonder Water by Elsève, or L’Oréal Fall Resist in mainland China; and in skincare, with Garnier‘s hugely successful Vitamin C Serum in many countries in the SAPMENA and Latin America Zones. NYX Professional Makeup also had an exceptional year, boosted by major launches and new types of partnerships, such as the one with hit Netflix series Money Heist (La Casa de Papel). L’Oréal Paris strengthened its position as the world’s number one beauty brand with sales exceeding 6 billion euros.
L’Oréal Luxe recorded strong growth at +20.9% like-for-like and +21.3% reported, in a global luxury beauty market that confirmed its recovery and saw a return close to pre-Covidlevels.
The Division achieved remarkable, balanced performance, by category, geographic Zone and distribution network, and has become the largest Division of the Group. L’Oréal Luxe took full advantage of the complementarity between its distribution channels, with a balanced acceleration of online and offline sales.
L’Oréal Luxe gained market share in its three categories. The ultra-premium brands Lancôme Absolue and Helena Rubinstein, and anti-aging innovations such as Retinol Skin-RenewingDaily Micro-DoseSerum by Kiehl’s performed very well in skincare. The Division consolidated its leadership in fragrances, driven by the strength of established icons like Libre by Yves Saint Laurent and by promising launches like Alien Goddess by Mugler and Luna Rossa Ocean by Prada. In a less dynamic makeup market, performance was driven by Lancôme and Shu Uemura.
The Division strengthened its position across all Zones, recording significant market share gains in North Asia and excellent performance in Europe. Following the reorganisation of its distribution network in North America, sales are again accelerating in this Zone.
At the end of the year, L’Oréal Luxe finalised the acquisition of Youth to the People.
The Active Cosmetics Division ended the year with exceptional growth at +31.8% like-for-like and +30.3% reported.
The Division significantly outperformed a booming dermocosmetics market in 2021, with health having become a core concern for consumers. It strengthened an already solid relationship with healthcare professionals and confirmed its leadership in dermocosmetic recommendations.
Active Cosmetics posted strong growth across all Zones, with exceptional performance in North America and North Asia. Offline sales saw a return to strong double-digit growth and online sales were exceptionally buoyant, exceeding one billion euros.
The Division’s major brands reported vigorous growth. La Roche-Posay more than doubled its growth rate compared with 2020, thanks to cutting edge innovations such as Effaclar serum and Lipikar EczemaMED, which is revolutionising the treatment of eczema. Vichy strengthened its leadership in anti-aging in Europe, particularly in skincare for menopausal women, while accelerating in Latin America and North America. SkinCeuticals continued to gather momentum, with the success of Silymarin CF confirming its antioxidant expertise. CeraVe saw spectacular growth for the second year running, in both the United States and the rest of the world.
Summary by geographic Zone
The Zone ended the year up +10.1% like-for-like and +10.7% reported, and is almost back to its 2019 level like-for-like.
The beauty market recovered across Europe in 2021 but remained below 2019 levels. L’Oréal significantly outperformed the European market, driven by a new surge in its online sales and digital leadership. The Group strengthened its position in the vast majority of countries, particularly the United Kingdom, Germany, France, Russia and the Scandinavian countries. It also gained market share in all its strategic categories: skincare, haircare, makeup and fragrances.
Active Cosmetics delivered particularly dynamic growth, driven by the continued success of CeraVe and La Roche-Posay. Despite the closure of salons in several countries at the beginning of the year, the Professional Products Division returned to significantly higher performance levels than in 2019, thanks to keen interest in its entire catalogue and the success of Kérastase and L’Oréal Professionnel innovations. L’Oréal Luxe confirmed its leadership in fragrances, with excellent starts for Alien Goddess by Mugler and Luna Rossa Ocean by Prada, and the strengthening of mainstays like La Vie Est Belle by Lancôme and Libre by Yves Saint Laurent. The Consumer Products Division meanwhile continued to gain market share in makeup.
The Zone ended the year at +22.2% like-for-like and +18.1% based on reported figures.
In a year still impacted by the pandemic and supply chain pressures, the Zone recorded market share gains in all Divisions and continued to grow both online and offline, as brick-and-mortar outlets reopened. The strong launch plan helped win over consumers and secure their loyalty.
Thanks to the success of breakthrough innovations such as Maybelline Sky High mascara and Infallible powder by L’Oréal Paris, the Consumer Products Division reported growth over two years in the makeup category. Following the reorganisation of its distribution network, L’Oréal Luxe freed up resources allowing it to accelerate growth, with highly successful launches in the fragrances category, including Ralph’s Club by Ralph Lauren and Luna Rossa Ocean by Prada. The Professional Products Division saw tremendous growth, led by SalonCentric. Redken was a standout brand, driven by the launch of Acidic Bonding Concentrate. The Active Cosmetics Division recorded spectacular growth; CeraVe confirmed its position as the most recommended skincare brand.
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L’Oréal SA published this content on 09 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2022 18:38:03 UTC.
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