On 7 December 2021, the L’Oréal Board of Directors approved a strategic transaction consisting of the repurchase by L’Oréal, as part of its share buyback programme, of 22.26 million of its own shares – representing 4% of its capital from Nestlé. The total price paid to Nestlé was €8.904 billion. These shares were cancelled in the financial year 2022 in line with the decision of the Board of Directors on 9 February 2022.
Furthermore, this transaction led the Group to take out a bridging loan of €1.9 billion and to issue commercial paper for €2.3 billion, with the balance financed by the cash available at 31 December 2021. This €1.9 billion loan was repaid in full during the 2022 financial year.
In March 2022, the Group issued a €3 billion bond in three tranches, of which a €1,250 million tranche with environmental (ESG) criteria linked to the Group’s CSR performance.
In July 2022, the Travel Retail Asia business historically carried by L’Oréal Hong Kong was transferred to L’Oréal Singapore. L’Oréal S.A. backed L’Oréal Singapore in its acquisition of the business via a share capital increase in the amount of €6.4 billion. In addition, following the transfer of the business, L’Oréal Hong Kong generated a profit of €6.8 billion, which was immediately transferred to L’Oréal S.A. in the form of an exceptional dividend.
The Company’s annual financial statements are prepared in accordance with French law and regulations, as set out in Regulation ANC 2014-03 (French Chart of Accounts) and generally accepted accounting principles. The accounts for the 2022 financial year were prepared and approved on a going concern basis.
These are comprised of sales of goods (net of returns, rebates and discounts) and services (including technological assistance fees).
Expenses relating to the advertisement and promotion of products to customers and consumers are recognised as expenses for the year in which the advertisement or promotional initiative takes place.
Research and innovation costs are recognised in expenses in he period in which they are incurred.
Issuance costs of borrowings are expensed immediately in the year in which they are incurred.
