REIGNITING GROWTH
JEAN-PAUL AGON
Chairman & Chief Executive Officer
Barclays Global Consumer Staples Conference
September 10th, 2020
September 10th, 2020
BEAUTY MARKET | L'ORÉAL |
-11.7% 2
-13/-14% 1
September 10th, 2020 | 1L'Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates. 2H1-2020like-for-like sales growth. |
MONTHLY SALES EVOLUTION1
+8.4% | |||||
FEBRUARY | MARCH | APRIL | MAY | JUNE | |
JANUARY | -2.3% | -4.6% | |||
-18.5% | -19.1% | ||||
-34.3% |
September 10th, 2020 | 1Like-for-like. |
PROFESSIONAL | CONSUMER | L'ORÉAL | ACTIVE |
PRODUCTS | PRODUCTS | LUXE | COSMETICS |
RESILIENCE DESPITE CLOSURE | SELL-OUT IN LINE WITH THE | PERFORMED SIGNIFICANTLY | STRONGLY GAINING |
OF SALONS, REBOUND SINCE | MARKET DESPITE FOOTPRINT | BETTER THAN THE MARKET | SHARE GLOBALLY |
END OF LOCKDOWN | ON MAKE-UP | +9% | |
EXCLUDING MAKE-UP, | |||
SALES ARE FLAT |
MARKET1 | L'ORÉAL2 | MARKET1 | L'ORÉAL2 | MARKET1 | L'ORÉAL2 |
-21.3% | ≃-6% | -16.8% | |||
≃-28% | -9.4% | ≃-23% | |||
MARKET1
L'ORÉAL2
≃-4%
September 10th, 2020 1L'Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates. 2H1-2020like-for-like sales evolution.
% IN Q2 1 | +17.5%1 | ||||
+30 | |||||
STRONG GROWTH | H1 PERFORMANCE | ||||
IN E-COMMERCE | |||||
OUTPERFORMING | |||||
IN SKINCARE | MARKET | ||||
L'ORÉAL | |||||
-4% 2
September 10th, 2020 | 1Like-for-like sales growth. 2L'Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates. |
RECORD GROWTH | ACCELERATION | STRONG ACCELERATION |
IN H1 | EVEN AS STORES RE-OPEN | OUTSIDE OF ASIA |
+65%
X2
THE MARKET
25%
OF SALES
+75% | +82% | USA | ||
+119% IN Q2 | ||||
+63% | ||||
+54% | ||||
WESTERN EUROPE | ||||
+91% IN Q2 | ||||
Q1 | APRIL | MAY | JUNE |
September 10th, 2020 1Like for like sales growth. Sales achieved on our brands' own websites + estimated sales achieved by our brands corresponding to sales through our retailers' websites (non audited data)
OPERATING MARGIN | LIMITED DECLINE IN | ||||||||
CLOSE TO FY 2019 | EARNINGS PER SHARE 1 | ||||||||
(% SALES) | €4.38 | ||||||||
18.6 | % 18.0% | €3.82 | |||||||
FY 2019 | H1-2020 | H1-2019 | H1-2020 |
September 10th, 2020 | 1Diluted earnings per share, excluding non-recurring items, after non-controlling interests. |
HIGH
GROSS MARGIN
(% SALES)
73.1% 73.1%
H1-2019H1-2020
September 10th, 2020 | 1Selling, general and administrative expenses |
LOWER SG&As 1
THANKS TO COST DISCIPLINE
€3Bn
€2.7Bn
H1-2019H1-2020
SUSTAINED R&I
INVESTMENTS
(% SALES)
3.1% 3.5%
H1-2019H1-2020
September 10th, 2020
SUSTAINED A&P
INVESTMENTS IN RELATIVE VALUE
(% SALES)
30.2% 30.5%
H1-2019H1-2020
PROTECTING | SUPPORTING | SUPPORTING |
OUR EMPLOYEES | CAREGIVERS | OUR PARTNERS |
September 10th, 2020
NO FURTHER LOCKDOWN
CONSUMERS ARE BACK TO BEAUTY
September 10th, 2020
POWERFUL LAUNCH PLAN
PROFESSIONAL | CONSUMER | L'ORÉAL | ACTIVE |
PRODUCTS | PRODUCTS | LUXE | COSMETICS |
ALL GEOGRAPHIES | ALL | ALL | |
& DIVISIONS | CHANNELS | TOUCHPOINTS | |
CONTINUED ACCELERATION | CREATING O+O | SHOPPABLE | |
OUTSIDE OF CHINA | EXPERIENCE WITH | LIVE-STREAMING | |
RETAILERS | |||
STRONG DOUBLE-DIGIT | STRONG PARTNERSHIPS | SOCIAL COMMERCE | |
GROWTH | |||
WITH PURE PLAYERS | |||
RELENTLESS PUSH | |||
ON D2C | |||
September 10th, 2020
MORE
SERVICES
VIRTUAL TRY-ONS
TELECONSULTATION
IN-STORE VIRTUAL TESTERS
September 10th, 2020
MORE | MORE |
DIGITAL MEDIA | CONNECTIONS |
MEDIA SHIFT | MASSIVE INCREASE OF |
CONVERSATIONS ONLINE | |
DIGITAL SPEND NOW | |
GREATER THAN | |
TRADITIONAL MEDIA |
TIGHTER COLLABORATION
WITH RETAILERS
STRONG JOINT
BUSINESS PLAN
BACK TO BEAUTY PLAN WORLDWIDE EXECUTION
EVENTS TO CREATE
EXCITEMENT
SMART OFFERS
TO DRIVE TRAFFIC
September 10th, 2020
STRONGER BOND | CLOSER RELATIONSHIP WITH |
WITH HAIRDRESSERS | MEDICAL PROFESSIONALS |
NEW RELATIONSHIP THANKS | DIGITALIZATION |
TO STRONG SUPPORT | OF CONNECTIONS WITH |
DURING THE CRISIS | MEDICAL PROFESSIONALS |
HUGE INCREASE IN ONLINE | MASSIVE AMPLIFICATION |
SUPPORT & TRAINING | OF REACH |
WINNING THE BATTLE FOR | |
NEW SALONS AND STYLISTS |
DRIVING POWER BRANDS | SUPERSIZING |
AND HERO PRODUCTS | ONLINE EVENTS |
CHINESE | |
VALENTINE'S DAY | |
SUPERBRAND DAY | |
LANCÔME 85 YEARS | |
ANNIVERSARY | |
11.11 |
September 10th, 2020
ENHANCING
THE O+O MODEL
SEAMLESS
BRAND EXPERIENCE
SHOPPABLE
LIVE-STREAMING
SOCIAL COMMERCE
STRONG SHIFT | UNLEASHING LAUNCHES |
TO SKINCARE | WITH MASSIVE SUPPORT |
40%
35%
AS % OF SALES | AS % OF SALES |
2019 | H1 2020 |
STRONG TRUSTED ASPIRATIONAL BRANDS WILL PREVAIL
WE ARE REINFORCING THE EQUITY OF OUR STAR BRANDS
September 10th, 2020
MEDIA INVESTMENT | MORE INVESTMENT | FOCUS ON | ROI |
INCREASING | IN DIGITAL MEDIA | CONVERSION | IS INCREASING |
AND SALES |
September 10th, 2020
STRICT COSTS | SMART OPTIMIZATION | PERMANENT | DECISIVE PORTFOLIO |
CONTROL | OF A&Ps | TRANSFORMATION | MANAGEMENT |
H1 MEASURES MAINTAINED | TO MAXIMIZE ROI | TO MAXIMIZE | TO FOCUS ON |
FOR H2 | EFFICIENCY | WINNING ASSETS |
HEADCOUNT FREEZE | PIVOT TO DIGITAL | ADAPTING OUR |
FOOTPRINT: | ||
TRAVEL BAN | VIRTUAL TESTERS | DISTRIBUTION |
INDUSTRY | ||
CONSULTING FEES | REDUCTION OF POS | LOGISTICS |
MATERIAL | ||
STRICT CONTROL | ||
OF INVESTMENTS |
CLOSURE OF
CLARISONIC
DISPOSAL OF
ROGER & GALLET
INTEGRATION OF MUGLER, AZZARO, THAYERS, VALENTINO
TRIPLE AMBITION:
- OUTPERFORM THE MARKET
- GET BACK TO POSITIVE LIKE-FOR-LIKE SALES GROWTH
- WITHOUT COMPROMISING PROFITABILITY
September 10th, 2020
September 10th, 2020
FINANCIAL
9/11 SARS CRISIS MERS
6%
5%
4%
3%
2%
1%
0% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
September 10th, 2020 | 1L'Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes, at constant exchange rates. |
NEW CONSUMERS | NEW CHANNELS |
ARE ENTERING | ARE INCREASING |
THE MARKET | ACCESS TO BEAUTY |
MIDDLE & UPPER | ONLY THE BEGINNING |
CLASSES | OF THE E-COMMERCE |
JOURNEY | |
AGEING POPULATION | |
MEN'S CONSUMPTION |
NEW BEAUTY NEEDS | NEW CONNECTIONS |
ARE CREATING | ARE ENGAGING |
NEW DEMANDS | MORE CONSUMERS |
MORE HEALTHY | MORE SERVICES |
MORE NATURAL | MORE SOCIAL |
MORE SUSTAINABLE | MORE PERSONALIZED |
September 10th, 2020
THE MOST POWERFUL | THE STRONGEST | THE LEADING EDGE |
FORCE IN R&I | PORTFOLIO OF BRANDS | IN DIGITAL |
THE MOST GLOBAL | UNIQUE ORGANIZATION | LEAD IN |
FOOTPRINT | AND CULTURE | SUSTAINABILITY |
September 10th, 2020
In 2020
We are determined to outperform the market, find again the path to growth if the sanitary conditions allow it, and deliver solid profitability.
September 10th, 2020
------------------------- Disclaimer -------------------------
"This document 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 (which are also available in English on our Internet site: www.loreal- finance.com).This document may contain some forward-looking statements. Although 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."
September 10th, 2020
Attachments
- Original document
- Permalink
Disclaimer
L'Oréal SA published this content on 10 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 September 2020 15:44:04 UTC