L’Oreal

Note: This is a daily stock update and the information stands true as of 07/02/25, 09:00 CET.

Company update:
Q4 24 sales increased by 2.5% lfl (vs. consensus range of 3.8% +4.5% ) to EUR11.08bn, ending the year with total revenue of €43.48bn (+5.1% lfl and +5.6% as reported).
Despite that topline miss in sales in Q4, FY EBIT Came in slightly better than consensus at EUR8.69bn vs Consensus at EUR8.65bn. In all, EBIT margin came in at 20% vs 19.8% last year, exceeding both our and consensus expectation.  
Net cash flow advanced 8.6% to €6.6bn
The board has decided to propose a dividend of €7.0 per share (+6.1% yoy)
 
Guidance: L’Oréal remains optimistic about the beauty market's outlook and expects growth to accelerate progressively.
 
Expert opinion:
Our cautious stance is predicated on the fading momentum of the underlying market and a valuation that we deemed excessive. Valuation receded but remains still elevated with a PE25 at 25x and  a PE26 at 23.3x. L’Oreal remains a fantastic company  but its underlying market are less favorable for the moment. But the decreasing organic sales growth in Q4 is disappointing and it is unclear when we can expect stronger growth to resume. While we are getting closer to entry prices for this fantastic company, it might just be a tad early in our opinion.

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