L’Oréal (OREP.PA): First Take: Strong Q2 sales growth with China recovering and high quality EBIT beat despite A&P increase

研报英文原文证据摘录

L’Oréal (OREP.PA): First Take: Strong Q2 sales growth with China recovering and high quality EBIT beat despite A&P increase

Goldman Sachs L’Oreal (OREP.PA)

Key takeaways by division

L’Oréal Luxe (38% of FY25 sales) delivered adjusted organic sales growth of +4.7%,

below consensus expectations of 5.6%. In H1, the division grew at twice the pace of the

selective beauty market, led by North Asia. Luxe in China sales grew more than 10%+

vs. 6% for the market in H1. Momentum also remained solid in Europe and North

America, while emerging markets continued to be a growth engine. By category,

fragrances posted double-digit growth, driven by Prada Paradigme and the successful

Armani deployment, alongside sustained strength at YSL and Valentino. Skincare

accelerated, supported by Helena Rubinstein’s Replasty franchise, while Medik8 also

delivered strong growth. EBIT margin was 22.1%, down 120bps year-on-year and

modestly below consensus expectations of 22.4%, resulting in reported EBIT that missed

expectations by 1.7%.

Consumer Products (35% of FY25 sales) delivered +4.6% adjusted LFL in Q2, ahead of

consensus at +3.6%, accelerating vs Q1 driven by L’Oréal Paris. North America continued

its dynamic trajectory, with double-digit growth in L’Oréal Paris and makeup benefiting

from continued innovation. Europe remained robust and outperformed the market

driven by hair care and skin care, with body care supported by the expansion of Mixa.

Emerging markets saw particular strength in Brazil, India and Vietnam, while in North

Asia performance was broadly in line with the market. All categories were supported by

innovation, with double-digit growth in haircare, and makeup supported by NYX which

has expanded into body care and fragrance. Local champions, Mixa and Thayers,