L’Oréal increased first half sales and profit as growth across Europe, professional products, dermatological beauty, and ecommerce offset currency pressure and uneven consumer conditions.
The French beauty group generated sales of €23.78bn during the half, an increase of 6.8% on a like for like basis, 6.5% after adjustment for structural effects, and 5.8% as reported.
Operating profit rose to €5.06bn, while the operating margin increased by 20 basis points to 21.3%. Net profit excluding non-recurring items reached €3.96bn, an increase of 4.7%.
Europe produced sales of €8.13bn. Like for like growth was 5.7%, while adjusted growth reached 6.1%. Second-quarter adjusted growth in the region accelerated to 6.7%.
Professional Products delivered adjusted first half growth of 11.6%, supported by haircare demand and salon distribution. Dermatological Beauty increased by 10.6%, while Consumer Products grew by 4.3% and L’Oréal Luxe by 5.1%.
Ecommerce continued to expand at a double digit rate and at almost twice the pace of the wider market, reinforcing the importance of digital distribution, personalised product discovery, and direct customer information within the group’s portfolio.
Nicolas Hieronimus, chief executive of L’Oréal, said: “As we head into the second half, we are confident that demand for beauty remains strong.”
The figures underline the defensive characteristics of beauty compared with some other discretionary categories. Individual products are generally purchased at lower price points than luxury fashion, jewellery, or large household goods, allowing customers to continue spending selectively when budgets are under pressure.
That resilience does not make the market immune to economic conditions. Customers can trade between premium and mass market products, delay purchases, or switch brands quickly.
L’Oréal’s breadth provides some protection because it operates across several price points, channels, geographies, and product categories. Weakness in one area can be offset by stronger demand elsewhere, although the scale of the portfolio also requires careful investment decisions.
Professional haircare and dermatological products have performed particularly well because they combine consumer interest with specialist distribution or clinical positioning. Products recommended through salons, pharmacies, dermatologists, or professional creators can command greater trust and reduce direct price comparison.
Innovation remains central to maintaining volume and pricing. New formulations, packaging formats, mascara launches, and premium hair treatments can stimulate demand without relying on broad discounting.
The commercial return depends on how quickly successful products can be distributed across countries and channels. Large beauty groups benefit from established manufacturing, retail relationships, and marketing systems, but they also face pressure from smaller brands capable of identifying niche trends quickly.
Ecommerce changes both the opportunity and the cost structure. Digital platforms provide detailed customer information, rapid product testing, and access to consumers outside traditional retail locations.
They also increase competition for search visibility, creator partnerships, performance marketing, fulfilment quality, and customer service. Digital sales can grow quickly, but acquiring customers through paid channels may become more expensive as brands compete for the same attention.
L’Oréal can allocate marketing expenditure between brands and regions according to performance. Products showing early momentum can receive additional support, while spending can be reduced where demand weakens.
Europe’s growth is notable because the region combines mature beauty markets with subdued wider economic conditions. Customers have remained willing to spend on products offering accessible premiumisation, personal care, or visible improvement even as other discretionary categories have slowed.
The difference between underlying and reported growth also demonstrates the effect of currency movements on multinational groups. Healthy demand can be partly obscured when overseas revenue is translated into euros at less favourable exchange rates.
L’Oréal is preparing for the addition of Gucci’s beauty licence, which is due to take effect on 1 July 2027. The agreement adds a globally recognised luxury name to the portfolio but will require careful integration across product development, distribution, marketing, and existing licence relationships.
Beauty licences allow fashion groups to extend their brands into fragrance and cosmetics without building the full manufacturing and distribution infrastructure themselves. Operators such as L’Oréal must balance royalty costs with global scale, product innovation, and the ability to sustain demand beyond an initial launch.
The increase in operating margin shows that the group has so far converted higher sales into stronger profitability. That position will be tested as it continues to invest in research, technology, ecommerce, marketing, and the integration of future brands.
L’Oréal enters the second half with growth across all four divisions and continued strength in Europe. Maintaining that performance will depend on consistent product renewal, disciplined marketing, and continued adaptation as customers divide their spending between digital, professional, pharmacy, and traditional retail channels.
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