Beauty giant L'Oreal Co. released its first half 2026 financial results on July 30, showcasing solid performance across all divisions.
The group recorded sales of 23.77 billion euros for the period, with like-for-like organic growth of 6.8% and reported growth of 5.8%. After adjustments, the comparable organic growth rate stood at 6.5%. This marks the sixth consecutive year of positive growth since 2021 and represents the highest half-year sales figure in the company's history.
On the profit side, the gross margin improved by 10 basis points to 74.8%, while the operating margin rose 20 basis points to 21.3%, setting a new record for the first half. Net profit after non-recurring items reached 3.9596 billion euros, up 4.7% year-on-year.
All four business segments posted growth. The Professional Products division led with sales of 2.921 billion euros, achieving an adjusted organic growth of 11.6%. The Dermatological Beauty division generated 4.216 billion euros, up 10.6%, with growth across all geographic regions. The Consumer Products division recorded 8.643 billion euros, a 4.3% increase, while the Luxury Products division rose 5.1% to 7.997 billion euros.
L'Oreal Co. Chief Executive Officer Nicolas Hieronimus stated during the earnings call that the first half showed strong momentum, with growth across all categories, regions, and business units. He attributed this to the advancement of innovation strategies and e-commerce channel growth that exceeded market averages. The group forecasts the global beauty market to grow by approximately 4% to 5% in 2026 and plans to continue outperforming the market.
Regionally, South Asia Pacific, the Middle East, North Africa, and Sub-Saharan Africa led with an adjusted organic growth of 13.8%. Europe grew 6.1%, North America increased 6.7%, and Latin America rose 5.2%.
North Asia posted adjusted comparable sales growth of 4.6% year-on-year, the slowest among major regions, but this represented a continuous improvement over two consecutive half-year periods. First half sales in North Asia reached 5.514 billion euros. The report highlighted that China was the primary growth driver for the region.
In the first quarter of 2026, the mainland China market achieved mid-to-high single-digit growth, a notable acceleration from 2025. L'Oreal Co. maintained its position as the top beauty brand in China in 2025, with the Luxury Products division holding approximately 30% market share in the premium segment.
The recovery in China was largely driven by premium categories. Within North Asia, the Luxury Products division saw double-digit growth in the fragrance category, with standout performances from brands like Helena Rubinstein and Lancôme. The Dermatological Beauty division also achieved double-digit growth in the region.
However, this recovery follows a period of downturn. In 2024, North Asia sales fell 3.2% to 10.303 billion euros, making it the only region to decline. L'Oreal Co. China's sales also saw a brief dip in 2024 before turning positive in 2025 and expanding further in the first quarter of 2026.
The competitive landscape remains intense, with local beauty brands putting continuous pressure on international players. In the first half of 2026, total cosmetics transaction volume across all channels in China reached 611.41 billion yuan, up 4.35% year-on-year. CEO Hieronimus commented on the Chinese market, saying, "It is a very competitive market, which forces us to innovate more."
In the travel retail channel, business remains in negative growth territory, though consumption may be shifting from travel retail to China's domestic market.
Overall, L'Oreal Co. delivered a comprehensive growth report for the first half, with the Chinese market serving as a key engine for North Asia's recovery. However, growth rates still lag behind other regions, and the sustainability and strength of the recovery will require further observation.
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