L'Oreal Co Eur Ord (LRLCF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

It is 9 o'clock. Good morning, everyone. And welcome to this 2025 annual presentation for the results of L'Oréal. Christophe Babulle, our CFO, will kick off with the presentation of our 2025 financial statements. Then each head of division will summarize the 2025 highlights and share with you the outlook for 2026. So you have Omar Hajeri, who's president of the professional products division. Fabrice Megardin, who is our newly appointed President of the Consumer Products Division, Myriam Coel-Wellgreen, in charge of Dermatological Beauty Division, and Cyril Chapuis, President of L'Oréal Luxe. Then I will conclude the first part of the meeting by explaining why 2025 was a defining year for L'Oréal and why we are uniquely well-placed to seize the ascending currents in emerging beauty trends in order to accelerate our top-line growth and deliver superior long-term performance. We will then move to the Q&A session, which we expect to last around 40 minutes. Finally, I draw your attention on the disclaimer that is now on the screen. And I guess we are ready to hear you, Christophe. Ladies and gentlemen, good morning. Let me share some of the key 2025 highlights with you. Like-for-like growth came in at 4%, marking another year of market outperformance. At 74.3%, our growth margin reached a new all-time high, up 10 basis points from last year despite the adverse impact from tariffs. Our operating profit margin increased 20 basis points, touching 20.2% for the first time. And our operating net cash flow of 7.2 billion euros, up almost 8%, implied cash conversion of over 100%. Sales increased by 1.3%. Foreign exchange had a negative 3.6% impact as the euro appreciated against all of our key currencies. You can find further detail in the appendix of this presentation. If the ...