Strong growth in sales and profits

 Sales: 22.46 billion euros
+10.4% based on reported figures
+6.2% excluding currency fluctuations
+5.5% like-for-like
Operating profit: +12.3% at 16.5% of salesNet profit after non-controlling interests: +17.6%Net earnings per share*: +13.6% at 4.91 eurosDividend**: +15% at 2.30 eurosNet cash-flow: +26.4% at 2.58 billion euros

The Board of Directors of L’Oréal met on February 11, 2013 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 2012.

Commenting on the annual results, Mr Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal, said:

 “2012 was a good year for L’Oréal on many fronts. The Group achieved strong sales growth, and once again demonstrated its ability to outperform the beauty market, and to gain market share, even in the more difficult markets of Western Europe and the United States. 2012 was also a very good vintage in terms of innovations – amongst the most remarkable in the industry – in each of our Divisions and major business segments.
2012 also marked a milestone in the acceleration of the Group’s internationalisation, as the “New Markets” became the number one geographic zone. Lastly, the profits and cash flow have grown very strongly, reaching record levels, and confirming the power of our business model. 

In view of these successes and improvements, we are facing the future with optimism and confidence. Confidence in the positive dynamics of our market. Confidence in the strength of our “Beauty for all” mission, in our “universalisation” strategy, and in our ambition to conquer one billion new consumers. And finally, confidence in the fundamentals of L’Oréal: its research, its ability to innovate and create high quality products, its outstanding portfolio of brands, its business model, which creates both value and cash flow, and lastly the unique strength of its teams.  

The Group is thus well prepared to outperform the market in 2013, and to achieve another year of sales and profit growth.” 

The Board of Directors has decided to propose to the Annual General Meeting of April 26, 2013 the payment of a dividend of 2.30 euros per share, an increase of +15% compared with the previous year, and the setting up of a new share buyback plan amounting to 500 millions in the 1st half of 2013.The Board will also propose to the Annual General Meeting the renewal of the terms of office of Mrs Françoise Bettencourt Meyers, of Mr Peter Brabeck-Letmathe and Mr Louis Schweitzer. It will also propose the appointment as new Board Director of Mrs Virginie Morgon, Executive Board Member and Chief Investment Officer of Eurazeo, one of the leading investment companies listed in Europe. 

* Diluted net earnings per share, based on net profit excluding non-recurring items after non-controlling interests.
** Proposed at the Annual General Meeting of April 26, 2013.

A - 2012 sales

Like-for-like, i.e. based on a comparable structure and identical exchange rates, the sales trend of the L'Oréal Group was +5.5%.
The net impact of changes in consolidation amounted to +0.7%.
Currency fluctuations had a positive impact of +4.2%.
Growth at constant exchange rates was +6.2%.
Based on reported figures, the Group's sales, at December 31, 2012, amounted to 22.463 billion euros, an increase of +10.4%.

Sales by operational division and geographic zone


4th quarter 2012At December 31st, 2012
€m Growth€m Growth
Like-for-likeReported Like-for-likeReported
By operational division







Professional Products741.72.4%5.3%3,002.62.1%6.7%
Consumer Products2,613.45.8%8.7%10,713.25.0%8.9%
L'Oréal Luxe1,516.76.2%12.3%5,568.18.3%16.0%
Active Cosmetics331.97.1%8.6%1,528.05.8%7.5%
Cosmetics total 5,203.65.5%9.2%20,811.95.5%10.3%
By geographic zone      
Western Europe1,805.01.4%3.2%7,399.60.6%2,1%
North America1,289.07.3%14,8%5,210.77.2%18.3%
New Markets, of which:2,109.68.2%11.3%8,201.69.2%13.6%
-   Asia, Pacific1,089.06.5%11.7%4,287.09.6%18.4%
-   Eastern Europe381.14.0%7.4%1,405.03.9%5.1%
-   Latin America474.713.5%12.0%1,826.610.4%8.7%
-   Africa, Middle East164.714.6%16.9%683.014.7%17.6%
Cosmetics total 5,203.65.5%9.2%20,811.95.5%10.3%
The Body Shop290.34.1%9.8%855.34.9%11.4%
Group total5,730.25.3%9.0%22,462.75.5%10.4%

(1) Group share, i.e. 50%.

1) Cosmetics sales


In a market affected by the slowdown in southern European countries, and the low weight of the New Markets, the Professional Products Division posted +2.1% like-for-like and +6.7% reported growth in 2012.

In the technical products category, the new-generation long-lasting hair colourant ODS2 (Oil Delivery System) was rolled out worldwide under the brands INOA2 by L’Oréal Professionnel, Chromatics by Redken and, at the end of the year, ColorInsider by Matrix.
Haircare is growing strongly, boosted by hair oils, and by the rising momentum of the Division’s luxury brands: Kérastase, with Cristalliste and with the recent launch of Initialiste, the first beauty serum with plant stem cells, along with Pureology and Shu Uemura Art of Hair.

The Division is making progress in Germany, France and the United Kingdom, but sales have receded in southern Europe because of a decline in salon visits. In the United States, the year was marked by SalonCentric’s supply chain reorganisation. The Division’s positions are rising strongly in the New Markets in Eastern Europe, Asia and the Middle East.


The Consumer Products Division achieved sales growth of +5% like-for-like and +8.9% based on reported figures, driven by strategic advances in Western Europe and North America, along with major product initiatives.

Haircare is growing strongly, thanks to the good results of the renewal of Elvive by L’Oréal Paris, its new Arginine Resist for fragile hair, and hair oils.
In hair colourants, the year-end was marked by the launch of Olia by Garnier, the first home-use hair colourant to feature ODS technology. This initiative, which marks a breakthrough in the market, is making a strong start in Western Europe, and will then be rolled out worldwide.
The facial skincare category is growing, thanks to the worldwide success of Revitalift Laser by L’Oréal Paris, a major anti-ageing innovation with a high concentration of Proxylane, and BB Cream by Garnier, whose success has effectively created a completely new category.
Finally, the make-up category was enlivened by the innovative Volume Express Mega Plush mascara by Maybelline and by the start of the internationalisation of the Essie brand.

The Division set a new all-time record for market share in Western Europe – notably in France – along with North America. In the New Markets, the Division is improving its positions in Mexico, Chile, Indonesia, Thailand and Turkey.


In 2012, L'Oréal Luxe sales grew by 8.3% like-for-like and +16% based on reported figures. In each of the four quarters, the Division significantly outperformed market growth, thanks especially to the dynamism of Lancôme, and the good performances in Asia and North America.

The Lancôme brand grew strongly, driven by innovations – in facial skincare with Génifique Yeux Light Pearl, and in fragrances with the launch of La Vie est Belle, the top worlwide launch of the year in its category – and thanks to the brand’s new premium luxury positioning, with Absolue L’Extrait. The year 2012 also brought a change of status for Yves Saint Laurent, which received the Prestige Brand of the Year award from the American magazine WWD: the brand is strengthening its multi-business segment dimension with the launch of Forever Youth Liberator facial skincare, the success in make-up of Vernis à Lèvres, and more recently, the European launch of the women’s perfume, Manifesto.
The strategic facial skincare category is growing strongly. The successes of Lancôme are backed up by the powerful worldwide growth of Kiehl’s and the expansion of Clarisonic in instrumental cosmetics in the United States.
Women’s fragrances are also being supported by the launch of Ralph Lauren’s Big Pony Collection for Women and by the rising momentum of Flowerbomb by
Viktor & Rolf.
In make-up, the end of the year was notable for the launch of Maestro foundation by Giorgio Armani, with a remarkably innovative formula, and finally for the acquisition in December of the Californian make-up brand Urban Decay.

The Division outperformed the market in all the major zones and in Travel Retail.


2012 was a particularly good year for the Division, with sales growth of 5.8% like-for-like, and 7.5% based on reported figures, which is roughly twice as fast as the trend in the dermocosmetics market.

2012 brought a new start for Vichy, driven by its new brand identity, and strong initiatives such as Idéalia, in skincare, and Dercos Neogenic, the first hair redensifying treatment with stemoxydine.
The La Roche-Posay brand, strongly established with 25,000 dermatologists, is maintaining its strong growth rate, and has in fact become the top dermocosmetics brand in Brazil. Its latest innovation, Redermic-R is extremely promising.
The Division’s relay brands are making a strong contribution to its success. SkinCeuticals, the premium medical and professional brand, is continuing its internationalisation.
Lastly, 2012 was the first-ever year in which the Division made more than 50% of its sales outside Western Europe. It also made a breakthrough in North America, and is maintaining its strong dynamism in Latin America.

Multi-division summary by geographic zone


The European context saw the decline of markets in the southern countries, particularly in hair salons and the luxury segment, and the resilience of the rest of Europe. At 12 months, L'Oréal sales increased by +0.6% like-for-like, and +2.1% based on reported figures, thus raising its market share, particularly in the Consumer Products Division, which consolidated its number one position. The Group performed well, particularly in France - where the acquisition of Cadum fully played its part - in the United Kingdom, in Germany and in Northern Europe.


In North America, L'Oréal ended 2012 with growth of 7.2% like-for-like and 18.3% based on reported figures. The good results seen in 2011 were surpassed in 2012. The Consumer Products Division became n°1 in its segment, thanks to strong growth at Garnier, Maybelline and Essie. The end of the year was marked by the strategic launch of L'Oréal Paris Advanced Hair Care. L'Oréal Luxe outperformed its market, thanks especially to Clarisonic. The Active Cosmetics Division significantly increased its presence in drugstores.


  • Asia, Pacific: L'Oréal achieved annual growth of +9.6% like-for-like and +18.4% based on reported figures. The Group is increasing market share in the region. While the selective channel context slowed in the second half, particularly in South Korea and in Travel Retail, L'Oréal strengthened its positions thanks to initiatives by Lancôme, Kiehl's and Yves Saint Laurent.
    In China, the Group grew faster than the market, especially with L'Oréal Luxe, Maybelline and L'Oréal Paris Men Expert. India, Indonesia and Thailand are particularly dynamic, driven by local initiatives such as Colossal Kajal by Maybelline, and the Garnier Men range.

Eastern Europe: With sales growth of +3.9% like-for-like and +5.1% based on reported figures, the Group is continuing its recovery, and is once again growing faster than the market. The turnaround is being driven by the Professional Products Division, with its conquest of new hair salons, particularly in Russia and Poland, and by the Consumer Products Division, thanks to the success of Elvive Arginine by L'Oréal Paris and Garnier ColorSensation hair colourants.

Latin America: L'Oréal achieved like-for-like growth of +10.4% and +8.7% based on reported figures, with increased growth in the second half. In 2012, L'Oréal became the market leader in Mexico, and expanded its positions in Chile, Argentina and Uruguay.
L'Oréal accelerated its roll-out in the countries of Central America, and in Colombia, with the acquisition of the Vogue brand, the mass-market make-up leader in Colombia.
In Brazil, the initiatives of Elvive Arginine Resist, hair oils and hair colourants led to an improvement in positions. The dynamism of the Active Cosmetics Division in this zone is also worth noting.

  • Africa, Middle East: With growth of +14.7% like-for-like and +17.6% based on reported figures, the Africa Middle East zone recorded very good performances in Turkey, the Gulf States and the Levant. 2012 was notable for the rising momentum of new subsidiaries in Egypt and Kenya, and the opening of a new subsidiary in Saudi Arabia.

2) The Body Shop sales

2012 was a year of acceleration for The Body Shop, whose sales grew by +4.9% like-for-like and +11.4% based on reported figures.
The brand unveiled its new "Beauty with Heart" identity in 2012, and started rolling out the new "Pulse" store concept. In addition, The Body Shop continued its multi-channel approach with a strong increase in e‑commerce.
In 2012, the brand strengthened its offering in skincare categories, with the success of the Chocomania bodycare range, and in facial skincare, with the innovative Drops of Youth.

The Body Shop achieved dynamic sales in the Middle East and in south-east Asia, while recording solid scores in Europe.

3) Galderma sales

Galderma sales increased by +5.9% like-for-like and +12.9% based on reported figures, with a fourth quarter which, as announced, reflected the impact of competition from generics in prescription products, especially in the United States.

Epiduo (acne) and Oracea (rosacea) are continuing to grow in the prescription products category. Epiduo is the world's leading prescription product in the topical acne treatment market.
Sales of over-the-counter (OTC) products increased strongly, driven by Cetaphil (a hydrating and cleansing skincare range).
The strong growth of the Restylane range (dermal filler) and the success of Azzalure (muscle relaxant) have this year once again helped to make Galderma one of the world leaders in the aesthetic and corrective dermatology market.

Asia and Latin America are growing strongly.

B - Important events during the period 10/01/12 - 12/31/12

On October 24, 2012, L'Oréal USA signed an agreement for the acquisition of Emiliani Enterprises for its SalonCentric Division. The acquisition was finalised on December 15, 2012.

On October 31, 2012, L'Oréal acquired the Vogue make-up brand in Colombia. The acquisition was finalised on January 31, 2013.

  • On November 7, 2012, in Indonesia, L'Oréal inaugurated its largest factory in the world, to meet the rapidly growing demand from the beauty market in south-east Asia.
  • On November 14, 2012, a new subsidiary, L'Oréal KSA, was founded in Saudi Arabia. L'Oréal holds 75% of the entity.
  • On November 26, 2012, L'Oréal signed an agreement to acquire Urban Decay. The acquisition was finalised on December 17, 2012.
  • On December 10, 2012, Galderma Pharma S.A. signed an agreement to acquire Spirig Pharma A.G., a major player in the Swiss dermatology market.
  • On December 11, 2012, in Mexico, L'Oréal inaugurated the largest hair colourant product factory in the world.

C - Results 2012

Audited financial statements, certification in progress.

1) Operating profitability at 16.5% of sales

Consolidated profit and loss account: from sales to operating profit.
 €m% sales€m% sales


20,343.1100.0 %22,462.7100.0 %

Cost of sales

- 5,851.5 28.8 %-6,587.729.3 %

Gross profit

14,491.671.2 %15,875.070.7 %

Research and development expenses

- 720.53.5 %- 790.53.5 %

Advertising and promotion expenses

- 6,291.630.9 %- 6,776.330.2 %

Selling, general and administrative expenses

- 4,186.920.6 %- 4,610.920.5 %

Operating profit

3,292.616.2 %3,697.316.5 %

Gross profit increased by 9.5%; it came out at 70.7% of sales, compared with 71.2% in 2011. As in the 1st semester, the gross profit underwent the combined effects of the exchange rate effect due to the weakening of the euro against the main currencies, of the impact of the consolidation of the American company Clarisonic, and of a slight increase in customer allowances, in the context of arbitrage with advertising and promotion expenses.

Research expenses increased strongly at +9.7%, and remained stable as a percentage of sales at 3.5%.

Advertising and promotion expenses increased by 7.7%; they came out at 30.2% of sales, slightly below the figure for 2011.

Selling, general and administrative expenses, at 20.5% of sales, once again declined by 10 basis points compared with 2011.

Overall, operating profit at 3,697 million euros, has increased by 12.3%, reflecting a significant improvement in profitability compared with 2011, at 30 basis points.

2) Operating profit by branch and division

 €m% sales€m% sales
By operational division    
Professional Products578.620.6%615.220.5%
Consumer Products1,859.018.9%2,050.819.1%
L'Oréal Luxe 926.319.3%1,077.0    19.3%
Active Cosmetics286.720.2%311.220.4%
Cosmetics divisions total3,650.619.3%4,054.319.5%
Non-allocated- 546.2- 2.9%-577.2-2.8%
Cosmetics branch total3,104.416.5%3,477.116.7%
The Body Shop68.18.9%77.59.1%
Dermatology branch**120.117.0%142.617.9%
Group 3,292.616.2%3,697.316.5%

* Non-allocated = Central Group expenses, fundamental research expenses, stock options and free grant of shares expenses and miscellaneous items. As a % of cosmetics sales.
** Group share, i.e. 50%.

The profitability of the Professional Products Division at 20.5% is in line with 2011. The profitability of the Consumer Products Division and the Active Cosmetics Division once again improved in 2012. The profitability of L'Oréal Luxe remained stable in 2012, at 19.3%.

The Body Shop continued to improve its profitability by 20 basis points in 2012, at 9.1%.
Finally, the profitability of Galderma, at 17.9% of sales, grew by 90 basis points in 2012.

3) Profitability by geographic zone

Operating profit20112012
€m% sales€m% sales
Western Europe1,512.320.9%1,576.221.3%
North America810.118.4%959.718.4%
New Markets1,328.118.4%1,518.418.5%
Cosmetics zones total*3,650.619.3%4,054.319.5%

* Before non-allocated.

Profitability in Western Europe improved by 40 basis points at 21.3%. Profitability in North America remained stable and its operating profit increased by 18.5%.
Profitability in the New Markets increased by 10 basis points at 18.5%, and their operating profit grew by more than 14%.

4) Net earnings per share**: 4.91 euros

Consolidated profit and loss accounts: from operating profit to net profit excluding non-recurring items.

€m20112012% change

Operating profit


Financial revenues and expenses excluding dividends received

- 25.2- 11.0 

Sanofi dividends


Profit before tax excluding non-recurring items


Income tax excluding non-recurring items

- 977.6- 1,025.3 

Non-controlling interests

- 2.5-2.7 

Net profit excluding non-recurring items after non-controlling interests






Net EPS** (€)


Net profit after non-controlling interests


Diluted net EPS after non-controlling interests (€)


Diluted average number of shares


* Net profit excluding non-recurring items after non-controlling interests does not include impairment of assets, restructuring costs, tax effects or non-controlling interests.
** Diluted net earnings per share excluding non-recurring items after non-controlling interests.

Total finance costs amounted to 11 million euros.

Dividends from Sanofi amounted to 313 million euros.

Income tax excluding non-recurring items amounted to 1,025 million euros, representing a rate of 25.6%, below the 2011 rate of 27.4%, with the benefit of a non-recurring fiscal change effect in China.

Net profit excluding non-recurring items after non-controlling interests amounted to 2,972 million euros, up by 15.1%.

Net earnings per share, at 4.91 euros, increased by +13.6%.

After allowing for non-recurring items, representing in 2012 a charge, net of tax, of 104 million euros, net profit after non-controlling interests amounted to 2,868 million euros, an increase of 17.6%.

5) Cash flow statement, Balance sheet and Net financial situation

Gross cash flow amounted to 3,661 million euros, an increase of +13.5%.

The working capital requirement increased modestly, in 2012, by 129 million euros.

Inventories declined significantly as a percentage of sales, at 9.1% at end-2012; trade accounts receivable also declined, at 14.3% of sales; investments, at 955 million euros, amounted to 4.3% of sales, an identical level to 2011. As a result, operating cash flow increased by 26.4%.

After dividend payment and acquisitions (mainly Cadum and Urban Decay), the Group recorded, at December 31st, 2012, a net cash surplus of 1,575 million euros, compared with 504 million euros at end‑2011.

The balance sheet structure is very solid. The reinforcement of shareholders' equity compared with end-2011 is mainly the result of profit allocated to reserves and the net increase in value of the Sanofi shares, valued at market price.

6) Proposed dividend at the Annual General Meeting of April 26, 2013

The Board of Directors has decided to propose that the Shareholders' Annual General Meeting of April 26, 2013 should approve a dividend of 2.30 euros per share, an increase of +15% compared with the dividend paid in 2012. This dividend will be paid on May 10, 2013 (ex-dividend date May 7, at 0:00 a.m., Paris time).

7) Share capital

The Board of Directors has set the amount of the share capital at 31st December, 2012 to 608,810,827 shares with a par value of 0.20 euro, representing a total of 121,762,165.40 euros.

“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
This news release may contain some forward-looking statements. Athough 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 a free translation into English of the 2012 Annual Results press 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

Financial analysts and institutional investors
Mrs Françoise LAUVIN
Tel.: +33 1 47 56 86 82
Tel.: +33 1 47 56 76 71

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, and the Internet site for shareholders and investors,, or its mobile version on your cell phone,; alternatively, call +33 1 40 14 80 50.

D - Appendices


Appendix 1: L'Oréal Group sales 2011/2012 (€ millions)

First quarter:  
Cosmetics4,8615 ,309
The Body Shop170180
First quarter total5,1605,643
Second quarter:  
The Body Shop168194
Second quarter total4 9895 570
First half:  
The Body Shop337374
First half total10,15011,213
Third quarter:  
The Body Shop166191
Third quarter total4,9385,519
Nine months:  
The Body Shop503565
Nine months total15,08716,732
Fourth quarter:  
The Body Shop264290
Fourth quarter total5,2565,730
Full year  
The Body Shop768855
Full year total20,34322,463

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