The related obligations are measured using an actuarial valuation method based on final salaries. The method takes account of length of service, life expectancy, turnover by category of personnel and economic assumptions such as inflation and discount rates. The Company has opted for the new method provided by recommendation ANC 2013-02 on the accounting treatment of pension obligations and similar benefits as amended on 5 November 2021. That is to say, the increase in the obligation for each employee is no longer recognised on a straight-line basis over his or her term of employment but straight line only over the vesting period for his or her benefit rights.
No provision is recognised in the balance sheet for net unfunded obligations. These thus appear as off balance sheet commitments.
Only obligations in respect of long service awards are no longer recognised as an off-balance sheet commitment; instead, a provision is recognised in the balance sheet based on an actuarial valuation of the obligation.
| € millions | 31.12.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Sales of goods | Sales of goods 31.12.20231,484.9 |
Sales of goods 31.12.20222,488.1 |
Sales of goods 31.12.20212,351.2 |
| Services(1) | Services (1)31.12.20234,361.3 |
Services (1)31.12.20223,672.7 |
Services (1)31.12.20212,795.7 |
| Other revenue | Other revenue 31.12.2023136.5 |
Other revenue 31.12.2022121.2 |
Other revenue 31.12.2021108.5 |
| TOTAL | TOTAL31.12.20235,982.7 | TOTAL31.12.20226,282.0 | TOTAL31.12.20215,255.4 |
(1) Including invoicing of technological assistance.
The Company generated €2,693.1 million of its net sales in France in 2023, compared with €3,400.8 million in 2022 and €3,093.6 million in 2021.
The decrease in net sales is mainly due to the partial asset contributions carried out on 1 July 2023 (see Highlights of the financial year).
This item mainly comprises brand royalties and foreign exchange gains from operations.
Average headcount can be broken down as follows:
| ; | 2023 | 2022 | 2021 |
|---|---|---|---|
| Executives | 5,982 | 6,482 | 6,001 |
| Supervisors | 1,665 | 2,062 | 2,119 |
| Administrative staff | 81 | 129 | 148 |
| Manual workers | 232 | 337 | 326 |
| Sales representatives | 259 | 533 | 540 |
| TOTAL(1)The decrease in average headcount reflects the partial asset contributions that involved transferring the workforce from the Affaires Marchés France, Domaines d’Excellence and International Distribution activities to the companies L’Oréal France and L’Oréal International Distribution. | 8,219 | 9,543 | 9,134 |
| Apprentices | 462 | 515 | 410 |
Depreciation, amortisation and charges to provisions can be broken down as follows:
| € millions | 31.12.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Depreciation and amortisation | Depreciation and amortisation 31.12.2023-131.8 |
Depreciation and amortisation 31.12.2022-157.2 |
Depreciation and amortisation 31.12.2021-152.2 |
| Impairment of non-current assets | Impairment of non-current assets 31.12.2023-94.2 |
Impairment of non-current assets 31.12.2022-49.4 |
Impairment of non-current assets 31.12.2021-18.9 |
| Impairment of current assets | Impairment of current assets 31.12.2023-11.8 |
Impairment of current assets 31.12.2022-8.2 |
Impairment of current assets 31.12.2021-9.8 |
| Provisions for liabilities and charges | Provisions for liabilities and charges 31.12.2023-143.5 |
Provisions for liabilities and charges 31.12.2022-99.4 |
Provisions for liabilities and charges 31.12.2021-107.8 |
| TOTAL | TOTAL31.12.2023-381.3 | TOTAL31.12.2022-314.2 | TOTAL31.12.2021-288.7 |
