L’Oréal has wrapped up its financial year with a remarkable sales total of €43.48 billion, showcasing a 5.1% year-on-year growth on a like-for-like basis, even as the company grappled with challenges in the Chinese market.
Françoise Bettencourt Meyers to Leave the Board
In a noteworthy development alongside these positive results, Françoise Bettencourt Meyers, the heiress to L’Oréal’s founder Eugène Schueller and a board member for nearly three decades, has announced her resignation. She intends to step down from her position and will not seek re-election at the shareholders’ general meeting set for April 29, 2025. Since 2020, Bettencourt Meyers has served as the Vice-Chairwoman of the board.
In a bid to ensure her family’s ongoing involvement with L’Oréal, Bettencourt Meyers has proposed that her family’s holding company, Téthys, maintain representation on the board. This could include her two sons, Jean-Victor and Nicolas Meyers. Téthys is the largest shareholder of L’Oréal. If her proposal is accepted, Alexandre Benais, Téthys’ Deputy CEO, would sit on the board to represent the holding company. Furthermore, plans are underway for Jean-Victor to follow in his mother’s footsteps as Vice-Chair.
Strong Performance and Future Plans
These board changes emerged alongside L’Oréal’s strong performance in 2024. CEO Nicolas Hieronimus emphasized the significance of this past year in crafting a robust foundation for the company’s future. He pointed to advancements in marketing, research, and innovation, driven by the integration of AI and technology. Hieronimus also highlighted efforts focused on harmonizing IT, simplifying operations, and bolstering resilience in the supply chain.
The company identified hair care as one of its standout segments, largely due to the success of the L’Oréal Paris brand. Growth occurred across various regions; however, North Asia was an exception, experiencing a 3.2% drop in sales year-on-year. This decline is primarily attributed to challenges faced in mainland China’s beauty sector, particularly within the selective segment.
Despite these obstacles, L’Oréal reported impressive growth in its L’Oréal Luxe, Dermatological Beauty, and Professional Products divisions, with all outperforming their respective markets in China. Looking ahead to 2025, Hieronimus is optimistic about the global beauty industry’s trajectory, expressing confidence in L’Oréal’s ability to maintain its growth in both sales and profits for the coming year.
Source: Cosmeticsbusiness.com