L'Oréal S.A.

L'Oréal delivered a defining year in 2025, surpassing €44 billion in sales and accelerating its digital transformation into a Beauty Tech leader powered by artificial intelligence, e-commerce, and digital innovation. The company's annual results highlight how AI-led efficiency, social commerce, and emerging markets are reshaping growth across the global beauty industry.

Financial Performance: L'Oréal reported 2025 sales of €44.05 billion, representing +4.0% like-for-like growth and +1.3% reported growth. The company achieved record operating margins of 20.2%, up 20 basis points, demonstrating strong profitability despite challenging market conditions. Earnings per share reached €12.71, up 0.4% from the previous year.

AI Transformation: Under CEO Nicolas Hieronimus, L'Oréal has embedded artificial intelligence across its entire business model. Management confirmed that every line of the profit and loss statement now benefits from AI-driven efficiencies. The company credited AI-enabled recurring cost control as a key factor behind the operating margin increase to a record 20.2%.

E-commerce Milestone: Digital commerce reached a major turning point in 2025, with online sales climbing to €13 billion, accounting for 30% of total group revenue for the first time. A decade ago, e-commerce represented only 5% of sales, highlighting the speed of L'Oréal's digital transformation.

L'Oréal was founded in 1909 by Eugène Schueller, a young French chemist who developed an innovative hair dye formula called Auréale. Schueller began manufacturing and selling his products to Parisian hairdressers, founding the company that would become L'Oréal. The company name was derived from "Auréale" and eventually shortened to L'Oréal.

Throughout the early 20th century, L'Oréal expanded its product range beyond hair dyes to include soaps, shampoos, and other beauty products. The company pioneered modern marketing techniques and scientific approaches to cosmetics development. Schueller's innovative spirit and focus on research and development established L'Oréal's commitment to innovation that continues to this day.

The post-World War II period saw L'Oréal expand internationally, acquiring companies and entering new markets. The company made strategic acquisitions including Lancôme (1964), Garnier (1970), and Maybelline (1996). In 1974, L'Oréal became publicly traded, providing capital for further global expansion. Throughout the late 20th and early 21st centuries, L'Oréal continued acquiring brands and expanding into emerging markets, becoming the world's largest cosmetics company.