L'Oréal S.A. Reports H1 2026 Revenue of €23.77 Billion, with Steady Margin Expansion

On July 30, L'Oréal Group released its financial report for the first half of 2026.

The data shows that the group's sales reached €23.77 billion in the first half of the year, with a comparable organic growth of 6.8%, a statutory growth of 5.8%, and an adjusted comparable organic growth of 6.5%. This marks the sixth consecutive year of positive growth for L'Oréal since 2021, representing its best-ever first-half sales performance in history.

On the profit front, the gross margin increased by 10 basis points to 74.8%, and the operating margin rose by 20 basis points to 21.3%, setting a new historical high for the first half of the year. Net profit, excluding non-recurring items, amounted to €3.9596 billion, a year-on-year increase of 4.7%.

By business division, all four divisions achieved growth.

The Professional Products Division recorded sales of €2.921 billion in the first half, with an adjusted comparable organic growth of 11.6%, leading the pack. The Dermatological Beauty Division achieved sales of €4.216 billion, a year-on-year increase of 10.6%, with growth across all regional markets. The Consumer Products Division reported sales of €8.643 billion, up 4.3%; while the L'Oréal Luxe Division posted sales of €7.997 billion, an increase of 5.1%.

Nicolas Hieronimus, CEO of L'Oréal Group, stated during the earnings conference call that the strong momentum in the first half was driven by growth across all categories, regions, and business divisions. This was primarily attributed to the advancement of its innovation strategy and outperforming the market average in e-commerce channels. The group expects the global beauty market to grow by approximately 4% to 5% in 2026 and plans to continue outperforming the market.

Regionally, South Asia Pacific, Middle East, North Africa, and Sub-Saharan Africa led the five major regions with an adjusted organic growth of 13.8%. Europe grew by 6.1%, North America by 6.7%, and Latin America by 5.2%.

North Asia saw an adjusted comparable sales growth of 4.6% year-on-year. While this was the lowest growth rate among the major regions, it marked a continuous improvement over two consecutive half-year periods.

Sales in North Asia totaled €5.514 billion in the first half. The financial report highlighted China as the primary driver of growth in the North Asia region.

In the first quarter of 2026, the mainland China market already achieved mid-to-high single-digit growth, significantly accelerating compared to 2025. L'Oréal firmly held the top position in the Chinese beauty market in 2025, with the L'Oréal Luxe Division capturing approximately 30% market share in the premium segment.

In terms of drivers, the recovery in the Chinese market was mainly propelled by premium categories. Within the growth of the L'Oréal Luxe Division in North Asia, the fragrance category continued to maintain double-digit growth, with brands such as Helena Rubinstein and Lancôme performing outstandingly. The Dermatological Beauty Division also achieved double-digit growth in the North Asia market.

However, this recovery emerged after a period of sluggishness.

In 2024, L'Oréal's sales in the North Asia region amounted to €10.303 billion, a year-on-year decline of 3.2%, making it the only region within the group to experience negative growth. L'Oréal China's sales also saw a brief decline in 2024. Growth turned positive in 2025 and further expanded in the first quarter of 2026.

The competitive environment remains fierce, with the rise of local beauty brands exerting continuous pressure on international brands. In the first half of 2026, the total transaction volume of China's cosmetics market across all channels reached RMB 611.41 billion, a year-on-year increase of 4.35%. Commenting on the Chinese market, L'Oréal CEO Nicolas Hieronimus said, "This is a highly competitive market, which forces us to be more innovative."

In the travel retail channel, business remains in negative growth territory, but consumption may be shifting from travel retail channels to the domestic Chinese market.

Overall, L'Oréal delivered a comprehensive growth performance in the first half. The Chinese market, as a key engine for the recovery in North Asia, is playing its role, but its growth rate remains lower than other regions of the group. The sustainability and intensity of the recovery remain to be further observed.