L'ORÉAL 2022 ANNUAL REPORT - THE ESSENTIALS
No. 1
in beauty worldwide (1)
87,40036
employees | global brands |
38.26
billion euros of sales
150+561
countries | patents filed in 2022 | |
7.45
billion euros in operating profit
CONTENTS
OUR PURPOSE
The desire for beauty has existed since the beginning of humanity. It's a universal aspiration which crosses time, countries, and cultures.
Beauty is a powerful force that moves us. We know that beauty is more than just looking good. Beauty gives us confidence in who we are, in who we want to be, and in our relationships with others.
For over a century we have been dedicated to one sole vocation: creating beauty. We remain true to the pioneering spirit of our founder and enjoy the unwavering support of his family, who have always accompanied our development.
Our goal is to offer each and every person around the world the best of beauty in terms of quality, efficacy, safety, sincerity and responsibility to satisfy all beauty needs and desires in their infinite diversity.
Because beauty is a permanent quest, we harness the power of our innovation to continually enhance the performance of our products and services.
Because we value diversity, we leverage each of our brands to celebrate all expressions of beauty.
Because we strive to be exemplary with a long-term vision, we anchor
our actions in our strong values and demanding ethical principles.
And because we are the global leader in beauty, we are aware that everything we do can have a meaningful impact.
Therefore:
Weacttoshapethefutureofbeauty by leveraging the best of science and technology, increasingly inspired by nature.
We act to drive social innovation by offering the best working conditions, training, and social protection for our employees.
We act to build a business with inclusivity at its heart by ensuring we are as diverse as the people we serve.
We act to nurture lasting partnerships with our clients and suppliers based on mutual trust and collaboration.
We act to create value for all our shareholders, by sustaining a robust business model.
We act to champion the cause of women and to strengthen the communities with which we engage.
04 - Chairman's message
05 - Interview with the
Chief Executive Officer
- - Board of Directors
- - Executive Committee
08 - Strategy and Ethical principles
Performance | Brands | |
10 - Financial performance | 14 | - Acquisitions |
12 - Social & environmental | 15 | - Global brands |
performance | 16 | - Luxe |
18 | - Consumer Products | |
20 | - Dermatological Beauty | |
22 | - Professional Products |
Shaping the future of beauty
- - The Green Sciences revolution
- - Beauty augmented by technology
- - Towards a more sustainable model
- - Talent and diversity
- - A responsive and responsible supply chain
We act to protect the beauty of the planet by fighting climate change, respecting biodiversity and preserving natural resources.
At L'Oréal, we share a common purpose to:
Create the beauty that moves the world
(1) Source: Beauty's Top 100, WWD, May 2022, based on 2021 sales. | 3 |
More than ever, L'Oréal is driven by tremendous energy
L'Oréal has emerged stronger from 2022, we are fit for the future
JEAN-PAUL AGON
Chairman of the Board of Directors
In a turbulent environment, L'Oréal showed outstanding agility and overcame a series of challenges thanks to the assets that make
it strong.
The first of these assets is our people: the L'Oréalians. They are the secret to our company's success. Their determination to go that extra mile and their spirit of solidarity were, once again, exemplary. They have my utmost admiration.
Nicolas Hieronimus' inspiring leadership was of course crucial in guiding teams and unlocking the impressive growth momentum in our sales, market shares and results.
He and the Executive Committee succeeded in swiftly rising to challenges while seizing every opportunity in an ever-changing market. The complementarity of our roles as Chairman and CEO is crucial in pursuing L'Oréal's ambitious and harmonious development.
I know our people are utterly committed to fighting for a more sustainable planet and a more caring world. As Chairman, I will always ensure L'Oréal continues to embody and inspire change with perseverance, ambition and sincerity.
Dual financial and social excellence will always be at the heart of our business model.
On behalf of the Board of Directors, I would like to thank and congratulate our CEO, the members of the Executive Committee and all our employees around the world for their remarkable achievements.
L'Oréal's highly demanding governance is also one of its fundamental assets. With their wide-ranging expertise and fruitful exchanges, our directors foster a long-term vision and set a clear course for the Group. This year, the Board focused on strategies in Research & Innovation, Beauty Tech and Green Sciences, as well as our corporate social and environmental responsibility.
Another key asset is the loyalty of our shareholders, with whom the Group has a very close relationship. In this respect, 2022 was a year to remember in terms of the many awards received by L'Oréal for
the quality of its financial communications.
Finally, our founding principles never waver. They give us the stability to weather any storm. Underpinned by entrepreneurial spirit, boldness, imagination and ethics, L'Oréal is full of resources, thrives on its diversity and is concerned about the world we live in.
All of these assets fill me with immense confidence in the future.
We are perfectly prepared to create the best of beauty. Our market is solid, our value creation model is balanced and virtuous. Our governance is robust and vigilant. Our teams are talented and determined. Our brands are strong and inclusive. Innovation is in our DNA and greatly augmented by our Beauty Tech and digital edge.
More than ever, L'Oréal is driven by tremendous energy.
NICOLAS HIERONIMUS
Chief Executive Officer
2022 was another year of remarkable, balanced and responsible performance. Reinforcing its position as the world's leading beauty company, L'Oréal grew 1.8 times faster than the market, with +10.9% like-for-like growth and +18.5% reported, outperforming the market across all Divisions, all geographic Zones and all categories for the second year in a row.
The L'Oréal engine fired on all cylinders and the Group delivered another strong operating margin improvement. In line with our dual ambition of economic and corporate performance, L'Oréal has continued to deliver strong environmental and social performance. Our teams around the world are at the heart of this tremendous collective success.
Over the past three years, in a context of unprecedented polycrisis, we have continued to transform ourselves and make our business model more virtuous. Leveraging our Research & Innovation capacity and strong brands, as well as our digital leadership, we have widened the gap with the market: we have emerged stronger from 2022 and are confident in our ability to achieve another year of growth in sales and profits in 2023.
Looking forward, we already see the dawn of a new era, multipolar and fragmented, augmented by Tech and Artificial Intelligence, with the highest expectations in terms of sustainability, purpose and cultural diversity. L'Oréal is uniquely positioned to win in this new world and evolve from "beauty for all" to "beauty for each", by leveraging its strengths: an unrivalled portfolio of desirable brands; our innovation leadership to champion Beauty Tech and stimulate consumers' appetite for beauty with cutting-edge products and services; our industrial agility and our multipolar model - strategically centralised and operationally decentralised, with a strong entrepreneurial spirit. We are confident that the beauty market will grow yet further and that we will outperform, thanks to our unique culture.
L'Oréal is ready for a new era!
Watch the full interview with the CEO by scanning this QR code or on lorealannualreport2022.com
4 | 5 |
Board of Directors
The directors draw on a diverse, complementary range of industrial,
entrepreneurial, financial and ESG expertise to ensure swift and in-depth
insight into the development challenges facing L'Oréal - the leader of a globalised, highly competitive cosmetics market undergoing significant change, where sustainable innovation and the ability to adapt are crucial.
Executive Committee
Executive Committee members are in charge of L'Oréal's Divisions, Functional Departments and geographic Zones. They implement strategic guidelines and direct Group activities worldwide.
The Board of Directors focuses the majority of its efforts on strategic questions, to promote and accelerate the Group's transition to an ever more digital and sustainable L'Oréal. Committed and proactive, driven by the conviction that stringent governance creates value for the company, the directors play a tireless, dynamic
role in the work of the Board and its committees, which issue detailed, insightful, well-founded recommendations. The Board makes decisions designed to ensure the future and long-term growth of L'Oréal, taking into account the social and environmental impact of its business
as well as its purpose.
Nicolas Hieronimus | Barbara Lavernos | Christophe Babule | Vincent Boinay |
Chief Executive Officer | Deputy Chief Executive Officer | Chief Financial Officer | President |
In charge of Research, Innovation | Travel Retail | ||
and Technology |
Jean-Paul Agon | Nicolas Hieronimus | Françoise | Paul Bulcke |
Chairman of the Board of Directors | Chief Executive Officer | Bettencourt Meyers | Vice-Chairman of the Board of Directors |
(reappointed in 2022) | (since 2021) | Vice-Chairwoman of the Board of Directors | (reappointed in 2021) |
(reappointed in 2021) |
Sophie Bellon | Patrice Caine | Fabienne Dulac | Belén Garijo |
(reappointed in 2019) | (reappointed in 2022) | (since 2019) | (reappointed in 2022) |
Béatrice | Thierry Hamel | Ilham Kadri | Jean-Victor Meyers |
Guillaume-Grabisch | (since April 2022) | (since 2020) | (reappointed in 2020) |
(reappointed in 2020) |
Nicolas Meyers | Virginie Morgon | Alexandre Ricard | Benny de Vlieger |
(since 2020) | (reappointed in 2021) | (since 2021) | (since April 2022) |
Cyril Chapuy | Myriam Cohen-Welgryn | Vianney Derville | Asmita Dubey |
President | President | President | Chief Digital and Marketing Officer |
Luxe | Dermatological Beauty (1) | Europe Zone |
David Greenberg | Omar Hajeri | Blanca Juti | Jean-Claude Le Grand |
President | President | Chief Corporate Affairs | Chief Human Relations Officer |
North America & Chief Executive Officer | Professional Products | & Engagement Officer | |
L'Oréal USA |
Fabrice Megarbane | Alexandra Palt | Alexis Perakis-Valat | Ersi Pirishi |
President | Chief Corporate | President | President |
North Asia Zone & Chief Executive | Responsibility Officer and | Consumer Products | Latin America Zone |
Officer L'Oréal China | CEO of the Fondation L'Oréal |
Frédéric Rozé | Vismay Sharma | Antoine Vanlaeys | (1) Formerly known as the |
Chief | President South Asia, Pacific, Middle East, | Chief | |
Global Growth Officer | North Africa Zones | Operations Officer | Active Cosmetics Division. |
6 | 7 |
Strategy and Ethical principles
Ethical principles
Ethics is at the heart of L'Oréal's governance and commitments. The Group is built on strong ethical principles:
L'Oréal is the world's leading name in beauty, its sole vocation and the exclusive focus of its expertise and passion for over 110 years.
From "beauty for all" to "beauty for each"
L'Oréal covers more than 150 countries
across all product categories, all distribution channels and all price points, to meet each person's specific beauty aspirations. The Group listens carefully to consumers and has deep
respect for their differences. It also capitalises on its portfolio of culturally diverse brands and its offering of personalised products and services powered by artificial intelligence, data and Beauty Tech.
Integrity: because acting with integrity is vital to building and maintaining long-term,trust-based relationships.
Respect: because we strive to have a positive impact on all our stakeholders.
Courage: because ethical questions are rarely easy but must be addressed.
Transparency: because we must always be sincere and able to justify our actions.
- commitment to innovation
Innovation sits at the heart of L'Oréal's model. The Group invests more than a billion euros
a year in Research, blending science and creativity to maintain its lead and invent beauty that is increasingly effective, inclusive and sustainable.
8 | 9 |
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L'Oréal SA published this content on 16 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2023 15:24:02 UTC.
