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Home > News > Market Flash > L'Oréal's Performance in the First Half of 2025 Was Solid: Growth Across All Business Lines and Continued Improvement in Profit Margins

L'Oréal's Performance in the First Half of 2025 Was Solid: Growth Across All Business Lines and Continued Improvement in Profit Margins

ECHEMI 2025-08-01

L'Oréal Group delivered strong results in the first half of 2025, achieving sales of €22.47 billion, a year-on-year increase of 3.0%. Growth momentum accelerated in the second quarter, reaching 3.7% after adjusting for IT, demonstrating the continued vitality of the global beauty market.

 

Regionally, strong performance in emerging markets drove double-digit sales growth, while mainland China also saw a return to moderate growth. Despite challenges in North Asia and some pressure from exchange rate fluctuations, L'Oréal effectively offset these headwinds through agile strategic execution and continued expansion of its e-commerce business.

 

By business segment, all four divisions of the Group achieved positive progress. The Professional Products Division performed particularly well, achieving 6.5% comparable growth (LFL), while the Consumer Products Division also saw growth of 2.8%. Fragrance and haircare categories continued to be growth engines, driven by strong demand.

 

In terms of profitability, L'Oréal further improved the Group's overall profitability. Operating profit margin increased 30 basis points year-over-year to 21.1%, with all divisions achieving margins exceeding 22%. Net profit, excluding non-recurring items, rose slightly by 1% to €3.78 billion.

 

In terms of brand strategy, L'Oréal continues to optimize its product portfolio, further consolidating its leadership in core markets through the acquisitions of Medik8, a high-end skincare brand (integrated into the Luxury division), and Color Wow, a professional haircare brand.

 

The Group stated that its future growth prospects are positive, driven by strong demand in the prestige market and continued investment in innovation. The upcoming new fragrances from Prada and Miu Miu are expected to further expand its prestige beauty portfolio. At the same time, L'Oréal will continue to increase investment in core brands and strategic new products to drive steady business growth.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.
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