L'Oreal Co Eur Ord (LRLCF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the conference call regarding L'Oréal 2025 half-year results. The conference is about to begin. I now hand over to Eva Quiroga. Mrs. Quiroga, please go ahead. Good morning to all and thank you for joining us for the presentation of our first half 2025 results. I'm here with our CEO, Nicolas Hieronymus. Good morning. Our CFO, Christophe Pavul. Hello, good morning. and the Global Head of Corporate Finance and Financial Communications, Laurent Schmidt. Good morning. As always, Christophe will comment the first half results. Nicolas will then share his takeaways from the first six months and tell you why we remain confident in the outlook for the rest of this year and beyond. After that, we will open for Q&A. You can find the slides of both presentations on our website already. You will be able to access the replay of this call later today And the half-year report will be available at the beginning of next week. And with that, over to you, Christophe. Thank you, Eva. Ladies and gentlemen, good morning. L'Oréal delivered a solid performance in the first half. My four key highlights are the robust like-for-like growth of 3% in the dynamic market, the sequential acceleration in like-for-like growth adjusted for the phasing related to our IT transformation, the record operating margin of 21.1% at 30 basis points from last year, and the operating net cash flow of 2.7 billion euros at 38% versus last year. Sales increased by 1.6%. Foreign exchange had a negative 1.9% impact as the euro appreciated against most of our key currencies. You can find further detail in the appendix of this presentation. If the exchange rates on the 30th of June were extrapolated until the 31st of December, the full year impact of currency fluctuations on sales would be a negative 3.7%. Th...