L'Oréal was able to increase its net profit and operating profit in 2023. However, the French cosmetics manufacturer did not meet analysts' expectations. In one region, sales even fell into the red.
As the company reports, sales grew by 7.6 percent to €41.18 billion in 2023 (11 percent comparable). Operating profit amounted to around 8.45 billion euros, an increase of 7.6 percent, and net profit amounted to 6.18 billion euros (up 8.4 percent).
L'Oréal: annual sales forecast of 41.49 billion euros
Analysts expected better results, as “finanzen.net” writes, among others. Annual sales were forecast at 41.49 billion euros. Experts estimate the net profit at 6.25 billion euros and the operating profit at 8.21 billion euros.
But Nicolas Hieronimus, CEO of L'Oréal, is satisfied with the figures in a press release: “2023 was a very successful year for the group. I am eternally grateful to our teams.” Regarding 2024, he said, among other things: “Looking ahead to 2024, we remain optimistic about the outlook for the beauty market and are confident that we will continue to outperform and achieve another year of best-in-class results. “Line sales and achieve profit growth.”
“Excellent growth” in three regions
According to the company, there was “excellent growth” in three regions: in the SAPMENA area (South Asia-Pacific – Middle East – North Africa) there was a sales increase of 16.4 percent, in Latin America 22 .8 percent and in Europe by 13.7 percent. In North America, sales increased “strongly” by 9.7 percent.
But last year things were looking bad in one region. In North Asia, sales fell 5.8 percent. The beauty market in mainland China is stagnant, according to the press release. However, there was still a 5.4 percent increase.
At the next general meeting on April 23, they want to propose a dividend of 6.60 euros per share, a ten percent increase compared to the dividend paid in 2023.
While L'Oréal was able to boost sales, Gucci owner Kering is struggling with weak demand for its luxury fashion. In 2023, the group's sales fell by four percent, to 19.6 billion euros, as the company reports.