L'Oréal's market cap, dividends, sales and earnings in 2020-2021

  •   DEHOUI Lionel

L'Oréal is a French company specialising in cosmetics. The group is recognised as the world leader in this sector. In 2020, the Covid-19 health crisis disrupted the smooth running of the company's activities. The crisis led to the closure of sales outlets. This led to a fall in the beauty market. Here are the main points to remember about the group's annual results for the year.

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L'Oréal's market cap, dividends, sales and earnings in 2020-2021
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Turnover for the financial year 2020

For the full twelve months of the 2020 financial year, L'Oréal generated sales of €27.99 billion, compared to €29.87 billion in 2019. On a like-for-like basis, it was down 4.1%. On a reported basis, sales were down 6.3% year-on-year. By division, Professional Products generated revenues of €3.097 billion this year.

3.097 billion, down 6.4% on a like-for-like basis and 10.0% on a reported basis. The Consumer Products Division's revenue reached EUR 11.703 billion in 2020. 11.703 billion, down 4.7% on a like-for-like basis and 8.2% on a reported basis. The L'Oréal Luxe division recorded sales of EUR 10.179 billion in 2020.

10.179 billion, down 8.1% on a like-for-like basis and 7.6% on a reported basis. In the twelve months of the year 2020, the Active Cosmetics division saw its sales increase by 18.9% (on a like-for-like basis) to €3.011 billion. On a reported basis, the increase was 13.0%.

 

Group activity by geographical area

L'Oréal's business performance by geographic region showed a mixed picture. This was due to the Covid-19 health crisis. In Western Europe, group sales amounted to 7.514 billion euros in 2020, down 10.3% on a like-for-like basis and 9.2% on a reported basis.

This downward trend is also observed in North America, where the company's revenues are estimated at €6.903 billion in 2020. 6.903 billion in 2020, down 7.4% on a like-for-like basis and 8.8% on a reported basis. In addition, despite the coronavirus epidemic, the company has gained market share in many countries.

In 2020, the group recorded total sales of 13.574 billion euros in all its new markets. 13.574 billion, up 1.5% on a like-for-like basis and down 3.2% on a reported basis. It is worth noting that the company's business grew in new markets, particularly in all zones in H2-2020.

China performed impressively. As such, it made a strong contribution to the group's 2020 results.

 

Performance of other financial indicators in 2020

For the full year 2020, L'Oréal recorded a gross margin of €20.459 billion, compared to €21.808 billion a year earlier. 21.808 billion a year earlier. It came to 73.1% of sales, compared with 73.0% the previous year. The group's operating profit was 5.209 billion euros, down 6.1%.

In detail, the operating profit of the Professional Products division reached 581.7 million euros in 2020. The Consumer Products division's operating profit amounted to 2.388 billion euros. 2.275 billion for the L'Oréal Luxe division. 766.0 million for the Active Cosmetics segment.

For the twelve months of 2020, net profit, group share, amounted to 3.563 billion euros, compared to 3.750 billion euros a year earlier. It therefore fell by 5.0%. Excluding non-recurring items, it fell by 5.9% to €4.099 billion, compared to €4.356 billion in 2019.

In 2020, net earnings per share were EUR 730, compared to EUR 774 the previous year. It decreased by 5.7% year-on-year.

 

Financial situation at the end of 2020

At the end of December 2020, L'Oréal posted a cash flow of 5.724 billion euros, down 1.3% year-on-year. Working capital requirements decreased by €729 million. Investments made during the year are estimated at 972 million euros. 972 million, representing 3.5% of group turnover.

For the whole of the financial year 2020, the company generated an operating cash flow of 5.480 billion euros. 5.480 billion, an increase of 8.9% compared to the previous year. Furthermore, at the end of this financial year, L'Oréal's balance sheet was fairly robust. This is illustrated in particular by the level of its equity.

At 31 December 2020, it amounted to 29 billion euros. The financial lease debt is estimated at 1.681 billion euros. After taking this into account, the group's net cash position at the end of the year was €3.859 billion.

 

About L'Oréal's dividend and market capitalisation

The General Meeting of Shareholders of the L'Oréal group was held on 20 April 2021. During this meeting, the company's Board of Directors proposed the payment of a dividend of €4.00 per share for the financial year 2020. This is an increase of 3.9% compared to the dividend paid for the previous year.

The dividend payment date was set for 29 April 2021. In addition, the L'Oréal share remains one of the most closely watched on the stock market by investors or traders. Indeed, the company is listed on the Paris Stock Exchange on the Euronext market. It is one of the companies that make up the French CAC 40 stock market index.

The company is also included in other indices such as the Euro Stoxx 50, FTSE Eurotop 100, Stoxx Global 200, Euronext 100, etc. In May 2021, the company passed the EUR 200 billion market capitalisation mark for the first time in its history. It became the third French company to reach this level, after LVMH and France Telecom (in 2000).

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