(AOF) – L’Oréal lifted the veil on Wednesday evening on its results for the 2021 financial year. The cosmetics giant published net income (group share) of 4.6 billion euros, up by 29%. For its part, operating income increased by 18.3% to 6.16 billion, and amounted to 19.1% of turnover, up 50 basis points. As for turnover, it reached 32.29 billion euros last year, an increase of 15.3% on a reported basis and 16.1% on a comparable basis.
“2021 is a historic year for L’Oréal”, rejoiced Nicolas Hieronimus, CEO of L’Oréal, “the group achieved record growth of 16.1%, twice the growth of the global beauty market. . ”
“Over two years, the group has achieved growth of 11.3% on a comparable basis, a spectacular outperformance in a market that has practically returned to its 2019 level,” added the manager.
Given its performance, L’Oréal will propose the payment of a dividend of 4.80 euros, an increase of 20%, compared to the dividend paid in 2021.
By way of outlook, Nicolas Hieronimus indicated that “in a still volatile global context at the start of the year, we are confident in our ability to outperform the market in 2022 and achieve another year of growth in turnover and results. ”
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=/ Key points /=
– World leader in cosmetics, created in 1909;
– Group organized into 5 divisions generating €28 billion in sales: consumer products for 42%, luxury for 36%, active cosmetics for 11% and professional products for 11%;
– Powerful international position, with 35 global brands and balanced revenues between Western Europe (27%), North America (25%), and “new markets”: Asia-Pacific for 35% ( leading position with 1/10th of the market share), Eastern Europe for 6%, Latin America for 5% and Africa Middle East;
– Business model based on 5 pillars: high R&D around 800 Ms€, innovation contributing to 15% of annual sales, release of new products between 15 and 20% per year, positioning in “premium” products, brands global and focus on e-commerce;
– Capital characterized by the strong positions of the Bettancourt and Meyers families -33.17%- and of Nestlé -23.2%-, Jean-Paul Agon chairs the board of directors of 19 members, Nicolas Hieronimus being managing director;
– Exceptionally healthy balance sheet, with shareholders’ equity of €29 billion and net cash of €3.9 billion.
=/ Issues /=
– Average annual growth above 5% of the world beauty market, driven by the enrichment of the populations of emerging countries and their aging in the OECD;
– Innovation strategy aimed at making the group the leader in “Beauty Tech”:
– 3.3% of income invested in research & innovation, approximately 500 patents filed per year by 21 research centers,
– focus on digital, reinforced by acquisitions (ModiFace, leader in augmented reality and artificial intelligence), by equity investments in start-ups with the BOLD fund and the partnership with GAFAM, Alibaba and Tencent ,
– integration of sustainability criteria into products;
– “L’Oréal for the future” environmental strategy:
– transformation of the business model within planetary limits: carbon neutrality of sites by 2025 and, by 2030, all plastic packaging of recycled or biosourced origin and 50% reduction in CO2 emissions compared to 2018 for each finished product,
– contribution of €150 million to solidarity actions for vulnerable women and environmental protection (regeneration and biodiversity),
– display of the social and environmental impact of products;
– Ability to generate high operational self-financing -€2.1 billion at the end of June;
– History of above-market sales growth for 12 years.
=/ Challenges /=
– Long-term evolution of the 8% stake in Sanofi;
– Risks of a decline in sales in China, where the wealthiest citizens will be taxed;
– Impact of the pandemic: 21% increase in sales on 1
er
semester, driven by North America and e-commerce, and 21% of net profit;
– 2021 objective of outperforming the market with growth in sales and profit;
– 2020 dividend of €4 and share buyback program.