2023 universal registration document

1. Presentation of the Group – Integrated Report

Financial information
  • On 16 March, the 2022 Universal Registration Document was filed with the Autorité des Marchés Financiers. It is made available to the public according to the terms of the regulations in force and may be viewed on the www.loreal-finance.com website.
Finance
  • In May, L’Oréal successfully completed a bond issue totalling 2 billion euros, the net proceeds of which will be used for general corporate purposes, in particular the acquisition of Aēsop.
2024 Outlook

As we head into 2024, we remain optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming it and to achieve another year of growth in sales and profits.

More than ever, L’Oréal is looking to the future a future that will have Beauty Tech at its very core. Beauty Tech will shape our industry and enable us to further strengthen our leadership. It will allow us to know our consumers ever-better, to bring them ever-more impactful and sustainable products and services and to become ever-sharper in our execution.

1.4.1.5. L’Oréal’s investment policy responds to long-term objectives

L’Oréal is a growing manufacturing company thanks largely to two types of investments:

  1. scientific and manufacturing investments, which are described in several sections (see sections 1.3.7. and 1.3.8.) ; and
  2. marketing investments, which are made on an ongoing basis and are inherent to the Group’s activities in the cosmetics industry. Indeed, winning new market share requires in-depth and situation-specific studies, as well as advertising and promotional expenses attuned not only to the familiarity of brands and their competitive position, but also to constant changes in consumers’ aspirations something that the subsidiaries’ sales and marketing teams monitor constantly. Lastly, investments in point-of sale (POS) advertising materials ensure optimal presence for our brands in points of sale.

For reasons relating to strategy and competition, L’Oréal cannot therefore provide any systematic information on future investments.

In 2023, the Group’s investments totalled €1,489 million, or 3.6% of its sales. This level reflects the Group’s constant efforts to improve manufacturing efficiency, research and digital development performance and enhance brand value.

Investment commitments in 2023 can be broken down as follows : production and the physical supply chain represented approximately 24% of total investments; marketing investments, including moulds, POS advertising materials and stores accounted for 34%; IT investments spread over all these categories represented 23% of total investments; research and the head offices in the different countries accounted for the remainderSee notes 3.2.2., 7.2. and 14.2. to the “Consolidated Financial Statements” for more details on these investments. Despite their strategic nature, none of these investments taken individually is material enough at Group level to warrant more detailed disclosure.

(1) See notes 3.2.2., 7.2. and 14.2. to the “Consolidated Financial Statements” for more details on these investments.