L’Oréal obtains financing through medium-term bond loans and issues short-term marketable instruments in France and the United States. The amounts of the programmes are €5,000 million and $5,000 million respectively. None of the Group’s borrowings or debt contains an early repayment clause linked to financial ratios (covenants).
Liquidity on the short-term marketable instruments issues is provided by confirmed undrawn short-term credit facilities with banks, which amounted to €5,000 million at 31 December 2022,compared to €5,000 million at 31 December 2021 and €5,363 million at 31 December 2020.
In March 2022, the Group completed a bond issue in the total amount of €3 billion. It is composed of three tranches. A first floating rate tranche with a maturity of 2 years in the amount of €750 million. A second fixed rate tranche with the same maturity in the amount of €1,000 million, with a coupon of 0.375% per annum. A third fixed rate tranche with a maturity of 4 years 3 months in the amount of €1,250 million, with a coupon of 0.875% per annum, known as a sustainability linked bond.
All borrowings and debt are denominated in euros and can be broken down as follows:
| € millions | 31.12.2022 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| Bonds(1) | 3,014.5 | - | - |
| Short-term marketable instruments(2) | 795.2 | 2,507.0 | 360.0 |
| Bank overdrafts and financing with the Group’s cash pool | - | - | - |
| Other borrowings and debt(3) | 62.4 | 2,439.5 | 9.3 |
| TOTAL | 3,872.1 | 4,946.50 | 369.3 |
(1) The issue premium of €3.4 million is directly linked to the amount of this bond.To finance the repurchase in 2021 of its own shares from Nestlé, the Group:
(2) issued commercial paper (€2,300 million); and
(3) took out a bridging loan (€1,904 million).
| € millions | 31.12.2022 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| Less than 1 year | 866.8 | 4,939.8 | 361.7 |
| 1 to 5 years | 3,005.3 | 6.7 | 7.6 |
| More than 5 years | - | - | - |
| TOTAL | 3,872.1 | 4,946.5 | 369.3 |
As was the case in previous years, drawdowns of short-term marketable instruments denominated in euros were made on the basis of negative rates in 2022.
Thus for 2022, the average rate of the debt in euros was +0.26% including bonds, compared to -0.51% in 2021 and -0.31% in 2020,and the average rate of short-term marketable instruments in dollars in the United States stands at 2.18%.
| € millions | 1 year or less | More than 1 year | Total |
|---|---|---|---|
| Trade accounts payable | 1,201.8 | - | 1,201.8 |
| Other current liabilities, of which | 1,050.8 | 0.4 | 1,051.2 |
| Tax and employee-related payables | 550.1 | - | 550.1 |
| Payables related to non-current assets(1) | 197.4 | 0.4 | 197.8 |
| Other payables | 303.3 | - | 303.3 |
(1) Long-term payables correspond to the earn-out clause on the Sayuki acquisition.
Accrual accounts included in trade accounts payable and other current liabilities are as follows:
| € millions | 31.12.2022 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| Trade accounts payable | 662.4 | 542.4 | 482.0 |
| Payables related to non-current assets | 162.6 | 168.1 | 230.2 |
| Tax and employee-related payables, of which | 498.7 | 486.9 | 442.4 |
| Provision for employee Profit Sharing | 31.7 | 29.2 | 28.5 |
| Provision for incentives | 143.8 | 135.2 | 122.1 |
| Other payables | 210.2 | 199.9 | 179.6 |
| TOTAL | 1,546.3 | 1,397.3 | 1,334.2 |
