• 2010 sales: 19.5 billion euros
    • +11.6% based on reported figures
    • +5.6% like-for-like
  • Operating profit: +18.6%
  • Net earnings per share*: +17.2%
  • Confidence in a new year of sales and profit growth
  • Increase in dividend**: +20% at 1.80 euro

The Board of Directors of L'Oréal met on February 10th, 2011 under the chairmanship of Sir Lindsay Owen-Jones and in the presence of the Statutory Auditors. The Board closed the consolidated financial statements and the financial statements for 2010.

Commenting on the figures, Mr Jean-Paul Agon, Chief Executive Officer of L'Oréal, said: 
"In the context of an upturn in the cosmetics market, L'Oréal achieved strong sales growth. The group advanced in all zones, all channels and all business segments; more dynamic than the market, it bolstered its position as the world number one in beauty.
2010 was a year of conquests for the group, with several of our brands achieving spectacular breakthroughs: L'Oréal Professionnel with its hair colourant Inoa, Maybelline in mass-market make-up, Yves Saint Laurent which is experiencing a true renaissance, and La Roche-Posay which is continuing its expansion.
The group is growing in Western Europe, clearly improving its positions in North America, and continuing its conquest of the new strategic markets, particularly in Asia and Latin America. In 2010, L'Oréal China became the group's number three cosmetics subsidiary, with sales of more than one billion euros.
These performances confirm the relevance of the strategic thrusts adopted at the end of 2008: accessible innovation, new product categories, accelerated globalisation of our brands, and strengthening of our R&D and advertising & promotional investments.
2010 was also a year of strong profit growth; the actions taken over the last two years to improve operating efficiency are continuing to pay off.
Well prepared to seize all strategic opportunities, and driven by the ambition of winning a further one billion new consumers, L'Oréal is turning a new page in its history: the page of universalisation and beauty for everyone.
Supported by an encouraging start to the year, we are confident in the group's ability to achieve a new year of sales and profit growth in 2011."

Furthermore, the Board of Directors has decided to propose to the Annual General Meeting on April 22nd, 2011 the payment of a dividend of 1.80 euro per share, an increase of +20% compared with 2009.

The Board will also propose to the Annual General Meeting on April 22nd 2011 the renewal of the terms of office of Mrs Liliane BETTENCOURT, Mrs Annette ROUX and Mr Charles-Henri FILIPPI.

At the end of the board meeting, Sir Lindsay Owen-Jones said: "With this level of growth and results, the group produced a good performance in 2010. Thanks to their drive and imagination, Jean-Paul Agon and his teams have succeeded in opening up new areas for growth and profitability, which are also paving the way for the future. The proposal by the Board of Directors to pay a dividend of 1.80 euro is an expression of our confidence in the group's solidity and dynamism."

* diluted net earnings per share, based on net profit excluding non-recurring items attributable to the group.
** proposed at the Annual General Meeting of April 22nd, 2011.

A - 2010 sales

Like-for-like, i.e. based on a comparable structure and identical exchange rates, the sales trend of the L'Oréal group was +5.6%.
The net impact of changes in consolidation amounted to +0.4%.
Currency fluctuations had a positive impact of +5.6%.
Growth at constant exchange rates was +6.0%.
Based on reported figures, the group's sales, at December 31st, 2010, amounted to 19.496 billion euros, an increase of +11.6%.


Sales by operational division and geographic zone

 4th quarter 2010At December 31st  2010
By operational division(1)      
Professional Products670.33.0%15.3%2,717.14.1%13.8%
Consumer Products2,315.44.6%11.6%9,529.95.5%11.4%
Luxury Products1,258.34.0%9.8%4,506.67.0%11.5%
Active Cosmetics304.65.9%11.3%1,385.64.7%8.9%
Cosmetics total4,548.54.3%11.6%18,139.15.6%11.6%
By geographic zone(2)      
Western Europe1,753.31.5%2.7%7,181.01.7%2.6%
North America1,043.32.6%15.0%4,291.54.1%12.5%
New Markets, of which:1,752.08.2%19.8%6,666.611.3%22.4%
-   Asia, Pacific843.38.5%23.1%3,192.211.2%22.9%
-   Eastern Europe374.76.9%11.6%1,398.98.1%15.3%
-   Latin America402.613.0%25.3%1,517.717.5%32.6%
-   Africa, Middle East131.5-2.4%8.9%557.84.1%13.8%
Cosmetics total4,548.54.3%11.6%18,139.15.6%11.6%
The Body Shop248.5-3.0%3.1%754.9-1.1%3.9%
Group total4,977.34.1%11.4%19,495.85.6%11.6%

On January 1st, 2010, the divisions and geographic zones were reclassified as stated below. All figures for earlier periods have been restated to allow for these changes.
(1) The Roger & Gallet activity has been transferred from the Luxury Products Division to the Active Cosmetics Division.
(2) The Travel Retail business of YSL Beauté, which was previously recorded 100% under Western Europe, has now been broken down between the Western Europe, North America and New Markets zones.
The Rest of the World zone has become the New Markets zone with the following distribution:
Australia, India and New Zealand, which were previously in the Africa, Orient, Pacific zone have been included in the Asia zone which has become the Asia, Pacific zone. The Africa, Orient, Pacific zone has become the Africa, Middle East zone.
(3) Group share, i.e. 50%.

1) Cosmetics sales


In a hairdressing market which picked up slightly, the Professional Products Division achieved growth in 2010 of +4.1% like-for-like, and +13.8% based on reported figures. Its initiatives, rolled out through a portfolio of highly complementary brands, enabled the conversion of more than 35,000 new salons. More than ever before, the division is asserting its role as the unchallenged leader in this channel.

  • In 2010, the initiatives introduced in technical products brought decisive success.
    In hair colourants, Inoa by L'Oréal Professionnel is a worldwide success, both in recruiting consumers and hairdressers and winning their loyalty. Repositioned at a more accessible price per application, SoColor by Matrix is conquering many salons in Europe, while Wonderbrown, a colourant for dark hair, is expanding in the United States.
    In textures, Optistraight by Matrix and Dulcia Advanced perm by L'Oréal Professionnel are winning over Asia. In the West, X-Tenso Moisturist by L'Oréal Professionnel is driving the worldwide development of "Brazilian straightening".
    Haircare is growing, supported by innovative launches: Kérastase Chronologiste, a luxury haircare line with caviar, L'Oréal Professionnel Fiberceutic with intracylane and Colourist Solutions by Pureology.
    L'Oréal Professionnel and Matrix are driving the division's growth; Kérastase is gradually accelerating, while Redken is strengthening its leadership in the United States.
  • In Western Europe, the division is winning market share, with significant growth in Germany, the United Kingdom, Sweden and France. In North America, 2010 saw a return to growth for Matrix, and dynamic growth for Mizani and Pureology. The acquisition of two distributors, CB Sullivan and Peel's, has completed the SalonCentric network.
    The New Markets are dynamic, with strong growth rates in India, China, Indonesia, and also in the Middle East and Brazil, where L'Oréal Professionnel is helping to build the professional markets of the future by opening its first institute for the training of young hairdressers.


The Consumer Products Division recorded growth of +5.5% like-for-like and +11.4% based on reported figures. It is winning market share in North America and the New Markets. The dynamism of the make-up market, the number one category in this division, stimulated growth across all zones. All the brands are growing, and above all Maybelline which achieved growth of +13.3% like-for-like.

  • L'Oréal Paris had a good year in haircare with strong growth in Latin America, the United States and Asia. In skincare, Youth Code achieved good scores. In make-up, Volume Million Lashes mascara proved to be a worldwide success.
    Garnier is strengthening its leadership in the facial skin cleanser segment for young people with the launch of Pure Active Exfo-Brusher. The brand is continuing its progress in the new category of deodorants: it is consolidating the positions it has won in Latin America and in Eastern Europe, and is moving into Western Europe.
    Maybelline is growing strongly in all regions. It became the make-up market leader in the United States thanks to the success of Falsies mascara and Instant Age Rewind The Eraser foundation. In Asia, the tinted skincare line BB Cream is proving highly successful.
    Finally, the division is making considerable progress in the men's skincare category, particularly in Western Europe where Men Expert is now number 1 in the market, and in Asia where the Garnier Men launch complements the L'Oréal Paris Men Expert range.
  • In Western Europe, in a sluggish market, the division advanced thanks to make-up, haircare and deodorants, particularly in the United Kingdom, Germany and Scandinavia.
    In North America, in a market which was also stable, the division significantly improved its positions with market share gains in make-up, hair colourants, haircare and styling.
    The New Markets are being galvanised by powerful regional initiatives: in Brazil and Argentina, thanks to L'Oréal Paris haircare and Garnier deodorants, and in China, India, Indonesia and the Philippines thanks to L'Oréal Paris haircare, make-up, and L'Oréal Paris and Garnier men's skincare.


The Luxury Products Division recorded growth of +7% like-for-like and +11.5% based on reported figures. In the context of an upturn in the selective market, the division posted sell-out growth in line with the market trend. It thus consolidated its worldwide positions, and particularly its leadership in Travel Retail. Its major core brands delivered good performances.  

  • Lancôme returned to strong growth, bolstered by the success of its skincare lines, particularly Génifique, but also by the launch of Teint Miracle foundation, the product of ten years of research, which won the Prix d'Excellence Marie-Claire. The fragrance Trésor by Lancôme is growing strongly, thanks to a new advertising campaign and the launch of Trésor in Love.
    Yves Saint Laurent is experiencing a renaissance, with double-digit growth: the brand has had a string of successes in fragrances - L'Homme Yves Saint Laurent, La Nuit de L'Homme, the relaunch of Opium and the arrival of Belle d'Opium - and is making a strong comeback in make-up with the launch of Rouge Pur Couture.
    Giorgio Armani had a very good year, driven by the success of the new women's fragrance Acqua di Gioia, not forgetting Giorgio Armani Cosmetics, with Eyes to kill Excess mascara proving a hit with consumers.
    Lastly, Kiehl's achieved an exceptional breakthrough in 2010 on all continents.
  • In Western Europe, the division is clearly number one, and sales are in line with the market trend. Its momentum is boosted by France, Germany, the United Kingdom and the Scandinavian countries. The good performances of the Yves Saint Laurent, Kiehl's and Ralph Lauren brands are also worth noting.
    In North America, the situation is more contrasting, yet the Yves Saint Laurent, Kiehl's and Viktor & Rolf brands are posting strong sales growth. Ralph Lauren showed outstanding performance with The Big Pony Collection.
    In the New Markets, the division is growing faster than the market: in Asia, thanks to the dynamism of Travel Retail, China, and the good performances of Lancôme, Kiehl's, Giorgio Armani and Shu Uemura; and in Eastern Europe, where the division is continuing to make conquests.


The annual sales of the Active Cosmetics Division grew by +4.7% like-for-like and +8.9% based on reported figures. All the brands and all the zones achieved growth. Across the world, the division confirmed its position as number one in dermocosmetics.

  • La Roche-Posay achieved double-digit growth, thanks in particular to Redermic[+], and is winning market share everywhere.
    Vichy saw the success of the LiftActiv franchise confirmed in the anti-ageing market on all continents, and particularly in China. Launched at the end of the year in Western Europe, NutriExtra bodycare has been very well received. This initiative is enabling the brand to reinforce its position in bodycare, which is a very strategic segment for pharmacies.
    Thanks to a dynamic last quarter in hair products, Innéov strengthened its leadership in Western Europe and achieved a spectacular breakthrough in Brazil.
    SkinCeuticals recorded very strong growth, thanks to its roll-out in European markets, and the opening up of China, Canada and Brazil.
    The integration of Roger & Gallet into the division is extremely encouraging, and internationalisation has begun in Western Europe and Brazil.
  • All the zones ended the year with positive growth, and this was particularly clear in Western Europe.
    The division is accelerating in the New Markets. Latin America produced a good performance, thanks in particular to Brazil.

Multi-division summary by geographic zone


  • With performances of +1.7% like-for-like, and +2.6% based on reported figures, the group's growth was very slightly faster than the market trend, particularly in the United Kingdom, Germany, Sweden and France, and in Travel Retail. All divisions recorded positive growth.


  • 2010 brought significant growth, far exceeding the market growth trend, at +4.1% like-for-like and +12.5% based on reported figures. The Consumer Products Division produced a very strong performance, thanks in particular to the excellent results of Maybelline. The Luxury Products Division continued the recovery which began at the end of 2009. The Professional Products Division had a very good year thanks to the success of Inoa.


With growth of +11.3% like-for-like, and +22.4% based on reported figures, the group is growing twice as fast as the market. The main driving forces are Asia and Latin America.

  • Asia, Pacific: Over the full year, the group recorded +11.2% growth in this zone like-for-like, +22.9% based on reported figures, and +13.2% excluding Japan, like-for-like. The group is continuing to win market share, particularly in India, the Philippines, Indonesia, and also in South Korea and Taiwan. With another year of double-digit growth, L'Oréal China, driven by the dynamism of its Men's lines, make-up, and haircare initiatives, continued to win market share, and exceeded the 1 billion euros of sales mark, thus becoming the group's number three cosmetics subsidiary.
  • Eastern Europe: Growth remains sustained, at +8.1% like-for-like and +15.3% based on reported figures, despite the highly contrasting market situations in different countries. Ukraine and Russia are the most dynamic countries, particularly thanks to make-up, Garnier, and the continuing advances of the Luxury Products Division.
  • Latin America: Sales advanced by +17.5% like-for-like and +32.6% based on reported figures. All the major countries in this zone are growing, particularly Brazil and Argentina. Mexico has returned to growth. The Consumer Products Division is the driving force of this expansion, through haircare and deodorants.
  • Africa, Middle East: Sales grew by +4.1% like-for-like and +13.8% based on reported figures, with contrasting trends. While the situation remains difficult in South Africa and Turkey, Lebanon and Morocco recorded strong growth.

2) The Body Shop sales

The Body Shop ended the year with like-for-like growth at -1.1%. Retail sales(1) are at -2.6%. The Body Shop had a year of contrasting performances, with trends differing between the developed countries and the New Markets.
2010 was a year of transition for The Body Shop, which completed its strategic reorganisation.
The brand is stepping up its militant approach to innovation, with launches including Natrulift, a firming skincare line with organic pomegranate, Dreams Unlimited, a fragrance with Community Fair Trade Ecuadorean alcohol and also Rainforest, an eco-conscious haircare range.
Above all, The Body Shop is accelerating its expansion into the New Markets, particularly in Eastern Europe, Asia, and India where the brand has doubled the number of its stores. The brand has also extended its distribution into new channels, such as the Internet and Travel Retail, to increase its reach and its visibility.
Lastly, the actions taken on the operational front continue to deliver: The Body Shop is steadily improving its profitability.
At the end of 2010, The Body Shop has a total of 2,605 stores.

(1) Retail sales: total sales to consumers through all channels, including franchisees.

3) Galderma sales

Galderma achieved record sales, with a like-for-like increase of +16.1% and +23.0% based on reported figures, re-enforcing its position as a worldwide leader in dermatology. The company recorded double-digit growth in all regions across the world.
Sell-out is growing twice as fast as the market.

Strategic prescription brands Epiduo (acne), Oracea (rosacea), Clobex (scalp psoriasis), Metvix (skin cancer), Rozex/Metro (rosacea) and Loceryl (onychomycosis) have all shown excellent results. Galderma also significantly expanded its presence in the corrective and aesthetic dermatology segment. The company continued to successfully launch Azzalure (a botulinum toxin type A developed for use in aesthetic medicine) in several European countries and broadened its product portfolio with the pre-launch of Emervel, a hyaluronic acid dermal filler range.

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

  • On December 10th 2010, the group's subsidiary L'Oréal USA, acquired, via its SalonCentric division, the salon distribution business of Peel's Salon Services, a Nebraska-based company which operates in 12 central states of the U.S. With this new acquisition, L'Oréal USA's SalonCentric division is extending its distribution, which now covers the vast majority of U.S. territory.
  • On December 13th 2010, the pharmaceutical company Galderma, a 50:50 joint venture between L'Oréal and Nestlé, announced the launch of a bid for the Swedish company Q-Med, which specialises in corrective and aesthetic dermatology. This acquisition should enable Galderma to accelerate its development in the highly dynamic segment of corrective and aesthetic dermatology. After receiving the support of 77.79% of Q-Med shareholders, Galderma has indicated today, February 10th,in a statement, that its offer has been extended by 15 days and increased to SEK79 per share.

C - 2010 Results

Audited financial statements, certification in progress.

1) Operating profitability and Consolidated profit and loss account

 €m% sales€m% sales
Cost of sales-5,16229.5%-5,69729.2%
Gross profit12,31170.5%13,79970.8%
Research and development expenses-6093.5%-6653.4%
Advertising and promotion expenses-5,38930.8%-6,02930.9%
Selling, general and administrative expenses-3,73621.4%-4,04920.8%
Operating profit2,57814.8%3,05715.7%

Gross margin increased by +12.1% and came out at 70.8% of sales, compared with 70.5% in 2009, representing an improvement of 30 basis points.

Several factors had a favourable impact, including:

  • the significant improvement in manufacturing cost, achieved in particular through strong growth in volumes and good performances in purchasing,
  • better inventory management which led to a reduction in provisions for obsolete and slow-moving inventories,
  • the reduction in physical distribution costs.

On the other hand, two factors had an unfavourable impact on this item:

  • the impact of changes in monetary parities,
  • the moderate increase in promotional offers to customers, which are deducted from sales.

Research and development expenses increased by +9.1% based on reported figures (+8.9% like-for-like) and represented 3.4% of sales.

Advertising and promotion expenses came out at 30.9% of sales.

Selling, general and administrative expenses grew significantly less rapidly than sales, at +2.7% based on a comparable structure and identical exchange rates. They improved by 60 basis points compared with 2009.

Overall, operating profit grew by +18.6% and came out at 3 057 million euros, that is 15.7% of sales, an improvement of 90 basis points compared with 2009.

2) Operating profit by branch and division

 €m% sales€m% sales
By operational division    
Professional Products47720.0%55220.3%
Consumer Products1,57718.4%1,76518.5%
Luxury Products(1)61215.1%79117.5%
Active Cosmetics(1)25520.0%27820.1%
Cosmetics divisions total2,92118.0%3,38518.7%
Cosmetics branch total2,43915.0%2,87215.8%
The Body Shop547.4%658.7%
Dermatology branch(3)8517.4%11919.8%
Group 2,57814.8%3,05715.7%

(1) At January 1st, 2010, Roger & Gallet was transferred from the Luxury Products Division to the Active Cosmetics Division. Figures for 2009 have been adjusted to allow for this change.
(2) Non-allocated = Central group expenses, fundamental research expenses, stock option expenses and miscellaneous items. As % of total sales.
(3) Group share, i.e. 50%.

All the divisions achieved growth in their operating profitability, particularly the Luxury Products Division, whose operating profit increased from 15.1% to 17.5%.

There were also substantial improvements at the following levels:

  • non-allocated expenses, which declined to 2.8% of sales,
  • The Body Shop, which continued its recovery with profitability at 8.7%,
  • Galderma, whose operating profitability continued to grow at 19.8%.

3) Profitability by geographic zone

Operating profit20092010
 €m% sales€m% sales
Western Europe1,47221.0%1,55221.6%
North America55514.5%70916.5%
New Markets89416.4%1,12516.9%
Cosmetics zones total(1)2,92118.0%3,38518.7%

(1) Previously non-allocated.
At January 1st, 2010: The Travel Retail sales of YSL Beauté, previously included under Western Europe, have been allocated to the different zones.
The Rest of the World zone has become the New Markets zone.
Figures for 2009 have been adjusted to allow for these changes.

There was an improvement in profitability in all zones.

4) Net earnings per share(2): 4.01 €

Operating profit2,5783,057
Finance costs-89-36
Sanofi-Aventis dividends260284
Pre-tax profit excluding non-recurring items2,7493,305
Income tax excluding non-recurring items-749-932
Minority interests-2.7-2.3
Net profit excluding non-recurring items after minority interests(1)1,9972,371
EPS(2) (€)3.424.01
Diluted net earnings per share (group share)583,797,566591,392,449

(1) Net profit excluding non-recurring items after minority interests does not include capital gains and losses on disposals of long-term assets, impairment of assets, restructuring costs, and in 2010 competition litigation, associated tax effects or minority interests..
(2) Diluted net earnings per share excluding non-recurring items after minority interests.

Finance costs amounted to 35.6 million euros, representing a sharp reduction, mainly because of the very significant decrease in net debt.

Dividends received from Sanofi-Aventis amounted to 284 million euros, up by +9.1%.

Tax amounted to 932 million euros, representing a rate of 28.2%, slightly above the 2009 rate which was 27.3%.

Net profit excluding non-recurring items after minority interests totalled 2,371 million euros, up by +18.7%.

Net earnings per share, at 4.01 euros, increased by +17.2%.

5) Net profit excluding non-recurring items after minority interests: €2,371m

Net profit excluding non-recurring items after minority interests1,9972,371 
Non-recurring items net of tax-205-131 
Net profit after minority interests1,7922,240+25%
Diluted earnings per share (€)3.073.79 

Excluding non-recurring items, which amounted to a charge, net of tax, of 131 million euros, net profit amounted to 2,240 million euros, an increase of +25%.

6) Cash flow Statement, Balance sheet and Debt

Gross cash flow amounted to 3,171 million euros, up by +15% compared with 2009.
There was a very positive change in the working capital requirement, which decreased in 2010, for the second consecutive year, by 132 million euros.

Capital expenditure continued to be contained, at 3.5% of sales.

After dividend payment and purchases of investments, and allowing for the exercise of options, the residual cash flow comes out at 1,891 million euros.

The balance sheet, whose structure was already robust, has been strengthened, with shareholders' equity representing 62% of total assets.

Net financial debt amounted to 41 million euros, representing 0.3% of shareholders' equity.

7) Proposed dividend at the Annual General Meeting on April 22nd, 2011

The Board of Directors has decided to propose that the Annual General Meeting of Shareholders of April 22nd, 2011 should approve a dividend of 1.80 euro per share, an increase of +20% compared with the dividend paid in 2010. This dividend will be paid on May 4th, 2011 (ex-dividend date April 29th at 0:00 am).

8) Share capital

Finally, the Board of Directors has set the amount of the share capital at December 31st, 2010:  600,992,585 shares with a par value of 0.20 euro, representing a total of 120,198,517 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.”

Contacts at L'ORÉAL

Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel.: +33 1 47 56 83 02
[email protected]

Financial analysts and institutional investors
Mrs Françoise LAUVIN
Tel.: +33 1 47 56 79 15
[email protected]

Tel.: +33 1 47 56 76 71
[email protected]

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 - Annexes

Appendix 1: L'Oréal group sales 2009/2010 (€ millions)

First quarter:  
The Body Shop162164
First quarter total4,3704,722
Second quarter:  
The Body Shop161170
Second quarter total4,3994,945
First half:  
The Body Shop323334
First half total8,7699,667
Third quarter:  
The Body Shop162172
Third quarter total4,2354,852
Nine months:  
The Body Shop485506
Nine months total13,00414,518
Fourth quarter:  
The Body Shop241249
Fourth quarter total4,4694,977
Full year  
The Body Shop726755
Full year total17,47319,496

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