L'Oreal Co Eur Ord (LRLCF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the L'Oreal 2026 Half Year Financial Webcast. The conference is about to begin. I now hand over to Eva Quiroga. Miss Quiroga, please go ahead. Thank you very much, Eugenia, and 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 Hieronimus. Hello. Our CFO, Christophe Babule. Hello. and our Head of Corporate Finance and Financial Communications, Laurent Schmitz. Hello, good morning. As always, Christophe will comment the first half results. Nicolas will then share his key highlights 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'll 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 a half-year report will be available at the beginning of next week. So that's over to you, Christophe. Thank you, Eva. Ladies and gentlemen, good morning. L'Oréal delivered an excellent first half. My four key highlights are the very robust adjusted like-for-like growth of 6.5%, the strong growth margin of 74.8% of 10 basis points, the record operating margin of 21.3% of 20 basis points, and the operating net cash flow of more than 3 billion euros up 13.9%. Sales increased by 5.8% and foreign exchange had a negative 2.8% impact as the euro appreciated against most of our key currencies. If the exchange rates on the 30th of June were extrapolated until the 31st of December, the full year impact on sales would be a negative 0.6%. This is a clear improvement over the negative 2.5% we had anticipated at the start of the year. The change in scope of consolidation contributed 1.8%. It reflects the acquisitions of Dr. J, Colo...