L’Oréal has released its half-year results for 2025, reporting modest but steady growth in global sales, driven largely by continued momentum in emerging markets, a rebound in mainland China, and signs of recovery in North America.
The French beauty giant recorded total sales of €22.47 billion in the first six months of the year, marking a reported increase of +1.6%. On a like-for-like basis, which adjusts for currency effects and structural changes, sales rose by +3.0%. The growth at constant exchange rates stood at +3.5%, although currency fluctuations dragged performance down by -1.9%. If current exchange rates as of 30 June (€1 = $1.1718) were to persist through year-end, the impact on full-year sales could reach -3.7%.
CEO Nicolas Hieronimus commented: “As anticipated, L’Oréal’s like-for-like growth accelerated between first and second quarter. The ongoing strength in emerging markets, the slight rebound in mainland China and the gradual recovery in North America more than offset the expected slowdown in Europe, once again validating our multi-polar model.
The acceleration was supported by a gradual improvement in global beauty market growth, which we expect to continue in the next two quarters. And it was boosted by the early success of our Beauty Stimulus Plan – which will become ever more impactful as we continue to roll-out our most recent blockbusters and as we have many exciting launches in the second half of the year.
Our operating margin increased by 30 basis points in the first half, particularly thanks to rigorous management of our operating expenses; our numerous initiatives in the second half will benefit from strong brand support, notably our major upcoming launches, including the new Prada men’s fragrance and the first Miu Miu fragrance.
I am confident that we will continue to outperform the global beauty market – which we expect to grow, even amidst the current economic and geopolitical tensions – and to achieve another year of growth in sales and an increase in our profitability.”
Division and regional performance
All four business divisions posted like-for-like growth in the first half, with Professional Products leading the way at +6.5% like-for-like (+4.9% reported). Consumer Products followed, growing by +2.8% like-for-like and +1.1% reported, showing early signs of a rebound in the North American market, especially within makeup. L’Oréal Luxe posted growth of +2.0% like-for-like and +1.0% reported, while Dermatological Beauty saw a +3.1% increase like-for-like and +1.7% on a reported basis. Fragrances and haircare were noted as the fastest-growing categories across the board.
Geographically, performance was mixed. SAPMENA–SSA saw standout growth of +10.4% like-for-like (+9.2% reported), followed closely by Latin America at +10.3% like-for-like, though this region reported a decline of -1.0%. Europe saw solid growth of +3.4% both like-for-like and reported. North America showed tentative recovery at +2.0% like-for-like (+0.4% reported), while North Asia experienced a slight contraction at -1.1% like-for-like and -1.5% reported.
Profitability and margin improvements
Gross profit for the group reached €16.78 billion, representing 74.7% of sales, slightly down from 74.8% during the same period in 2024. Operating profit increased by +3.1% to €4.74 billion, bringing the operating margin to 21.1% of sales, a 30 basis point rise from last year.
Research & Innovation costs remained steady at 3.0% of sales (€671.7 million), while advertising and promotion expenses came in at €7.18 billion or 31.9% of sales, a reduction of 20 basis points. Selling, general and administrative costs dropped by another 20 basis points, accounting for 18.7% of sales at €4.19 billion.
The Professional Products Division posted profitability of 22.4%, up 30 basis points. Consumer Products hit 22.5%, up 50 basis points, and L’Oréal Luxe came in at 22.3%, up 40 basis points. However, profitability for the Dermatological Beauty Division slipped to 28.2%, down from 28.9% in the first half of 2024.
Strategic acquisitions and innovation push
As part of its growth strategy, L’Oréal announced two acquisitions in June. The Group signed agreements to acquire US-based prestige haircare brand Color Wow, known for its innovative, omnichannel approach, and a majority stake in British premium skincare brand Medik8, which will now join the L’Oréal Luxe portfolio.
Delphine Viguier-Hovasse was appointed the company’s first Chief Innovation & Prospective Officer, effective from 1 July 2025. She also joined the Group’s Executive Committee.
ESG and other key developments
Sustainability efforts remained central to the Group’s agenda. On World Refill Day, several brands promoted refillable beauty options. L’Oréal also launched its Sustainable Innovation Accelerator, pledging €100 million over five years to support industry-wide sustainability efforts.
