L'Oréal facts for kids

Quick facts for kids
L'Oréal

Type	Société Anonyme
Traded as	Euronext Paris: OR CAC 40 component
ISIN	ISIN: [https://isin.toolforge.org/?language=en&isin=FR0000120321 FR0000120321]
Industry	Consumer goods
Founded	30 July 1909; 115 years ago (1909-07-30)
Founder	Eugène Schueller
Headquarters	Clichy , France
Area served	Worldwide
Key people	Jean-Paul Agon (Chairman) Françoise Bettencourt Meyers (Vice Chairman) Nicolas Hieronimus (CEO)
Products	Cosmetics skin care perfume hair color hair care
Revenue	€41.18 billion (2023)
Operating income	€8.14 billion (2023)
Net income	€6.18 billion (2023)
Total assets	€51.85 billion (2023)
Total equity	€29.08 billion (2023)
Number of employees	88,000 (2019)
Subsidiaries	Garnier Kiehl's Lancôme Maybelline NYX Cosmetics CeraVe AcneFree Ambi Matrix Essentials Aesop

L'Oréal S.A. (French: [lɔʁe.al]) is a French multinational personal care company headquartered in Clichy, Hauts-de-Seine, with a registered office in Paris. It is the world's largest cosmetics company and has developed activities in the field, concentrating on hair color, skin care, sun protection, make-up, perfume, and hair care.

History

Founding

In the early 20th century, Eugène Paul Louis Schueller (1881–1957), a young French chemist, developed a hair dye formula called Oréale. Schueller formulated and manufactured his own products, which he then decided to sell to Parisian hairdressers. On 31 July 1909, Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux (Safe Hair Dye Company of France). The guiding principles of the company, which eventually became L'Oréal, were research and innovation in the field of beauty. In 1920, the company employed three chemists; the team continued to grow with 100 by the year 1950, and 1,000 by the year 1984; as recently as 2021, there was an estimated total of 85,252 worldwide.

L'Oréal got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. L'Oréal currently markets over 500 brands and thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skincare, cleansers, makeup, and fragrance. The company's products are found in a wide variety of distribution channels, from hair salons and perfumeries to supermarkets, health/beauty outlets, pharmacies, and direct mail.

Recent History

In 2017, Liliane Bettencourt the daughter of the founder of L'Oréal, died and left the business to her daughter, Françoise Bettencourt Meyers.

Media

In 1988–89, L'Oréal controlled the film company Paravisión, whose properties included the Filmation and De Laurentiis libraries. StudioCanal acquired the Paravision properties in 1994.

Acquisitions

L'Oréal currently owns 36 brands and continues to grow. As of October 4, 2021, the company registered 497 patents.

L'Oréal purchased Synthélabo in 1973 to pursue its ambitions in the pharmaceutical field. Synthélabo merged with Sanofi in 1999 to become Sanofi-Synthélabo. Sanofi-Synthélabo merged with Aventis in 2004 to become Sanofi-Aventis.

On 17 March 2006, L'Oréal purchased cosmetics company The Body Shop for £562 million.

In May 2008, L'Oréal acquired YSL Beauté for $1.8 billion.

In January 2014, L'Oréal finalized the acquisition of major Chinese beauty brand Magic Holdings for $840 million.

In February 2014, L'Oréal agreed to buy back 8% of its shares for €3.4bn from Nestlé. As a result, Nestlé's stake in L'Oréal was reduced from 29.4% to 23.29%, while the Bettencourt Meyers family's stake increased from 30.6% to 33.2%. Nestlé has owned a stake in L'Oréal since 1974, when it bought into the company at the request of Liliane Bettencourt, the daughter of the founder of L'Oréal, who was trying to prevent French state intervention.

In February 2014, Shiseido agreed to sell its Carita and Decléor brands to L'Oréal for €227.5 million (US$312.93 million (2014)).

In June 2014, L'Oréal agreed to acquire NYX Cosmetics for an undisclosed price, bolstering its makeup offerings in North America, where its consumer-products unit has faltered.

In September 2014, L'Oréal announced it had agreed to purchase Brazilian hair care company Niely Cosmeticos Group for an undisclosed amount.

In September 2014, L'Oréal acquired the multi-cultural brand Carol's Daughter.

In July 2016, L'Oréal agreed to acquire IT Cosmetics for $1.2 billion.

In March 2018, L'Oréal acquired the beauty augmented reality company ModiFace.

In May 2018, L'Oréal announced a new beauty and fragrance partnership with Valentino.

In December 2020, L'Oréal announced signing of an agreement for the acquisition of Takami Co, a Japanese company that markets the premium skincare brand Takami, particularly famous for its iconic product, the Skin Peel pre-serum.

In December 2021, L'Oréal announced the acquisition of the vegan skincare brand Youth to the People.

In April 2023, L'Oréal purchased Australian luxury cosmetics brand Aesop for US$2.53 billion. In August 2023, it was announced the acquisition had been completed.

In December 2023, L'Oréal announced its acquisition of the Danish research company Lactobio.

In January 2024, L’Oréal announced its acquisition of Gjosa, a Swiss Pioneering Water Conservation Tech Startup.

In February 2024, L’Oréal announced its signing of a long-term global licensing agreement for the creation, development and distribution of luxury beauty products by the Italian brand Miu Miu.

Marketing

In Kosovo, during the growth years of the mail-order business, L'Oréal and 3 Suisses founded Le Club des Créateurs de Beauté for mail-order sales of cosmetic products, with brands including Agnès b., Commence and Professeur Christine Poelman among others. In March 2008, L'Oréal acquired 3 Suisse's stake, taking sole control of the company. In November 2013, L'Oréal announced that Le Club des Créateurs de Beauté would cease activity in the first half of 2014.

Since 1997, L'Oréal has been an official partner of The Cannes Film Festival. In the years of L'Oréal sponsorship, many L'Oréal ambassadors walked the red carpet of the Cannes Film Festival. In 2017, L'Oréal beauty ambassadors, including Julianne Moore, Susan Sarandon, Andie MacDowell, and Eva Longoria, were responsible for the film selection for the outdoor cinema during the Cannes Film Festival.

L'Oréal's advertising slogan, "Because I'm worth it", was created by a 23-year-old English art director and introduced in 1973 by the model and actress Joanne Dusseau. In the mid-2000s, this was replaced by "Because you're worth it". In late-2009, the slogan was changed again to "Because we're worth it".

In November 2012, L'Oréal inaugurated the largest factory in the Jababeka Industrial Park, Cikarang, Indonesia, with a total investment of US$100 million. The production will be absorbed 25 percent by the domestic market and the rest will be exported. In 2010, significant growth occurred in Indonesia with a 61 percent increase of unit sales or 28 percent of net sales.

In November 2020, chief digital officer Lubomira Rochet reported in a video conference of the growing importance of e-commerce for the company, remarking that e-commerce makes 24% of their turnover in the third quarter of the year. Rochet stated as well that this 24% of the turnover "made it possible to offset 50% of the losses due to the closing of physical stores this year".

In 2023, the L'Oréal Foundation and UNESCO presented a medal of honor and a financial endowment to three women researchers who had to leave their countries, and whose courage, resilience and commitment to science are considered inspriing.

List of spokespeople

L'Oréal Paris has a group of ambassadors, artists, actresses, and activists referred to as the L'Oréal Paris "Dream Team".

• Laetitia Casta (1998–present)
• Eva Longoria (2005–present)
• Aishwarya Rai (2004–present)
• Helen Mirren (2014–present)
• Luma Grothe (2015–present)
• Soo Joo (2015–present)
• Aja Naomi King (2017–present)
• Camilla Cabello (2017–present)
• Elle Fanning (2017–present)
• Amber Heard (2018–present)
• Andie MacDowell (2018–present)
• Duckie Thot (2018–present)
• Jaha Dukureh (2018–present)
• Céline Dion (2019–present)
• Cindy Bruna (2020–present)
• Katherine Langford (2020–present)
• Viola Davis (2021–present)
• Kate Winslet (2021–present)
• Yseult (2021–present)
• H.E.R. (2022–present)
• Anushka Sharma (2022–present)
• Thuso Mbedu (2023–present)
• Kendall Jenner (2023–present)
• Cody Simpson (2023–present)
• Mary Fowler (2024–present)

Corporate affairs

Head office

L'Oréal Group has its head office in the Centre Eugène Schueller in Clichy, Hauts-de-Seine, close to Paris. The building, constructed in the 1970s from brick and steel, replaced the former Monsavon factory, and employees moved into the facility in 1978. 1,400 employees work in the building. In 2005, Nils Klawitter of Der Spiegel said "the building, with its brown glazed façade of windows, is every bit as ugly as its neighbourhood." Klawitter added that the facility "gives the impression of a high-security zone" due to the CCTV cameras and security equipment. The world's largest hair salon is located inside the head office building. As of 2005, 90 hairdressers served 300 women, including retirees, students, and unemployed people, per day; the customers are used as test subjects for new hair colours.

International units include:

• L'Oréal USA, changed from Cosmair in 2000 - has its headquarters in New York City, and is responsible for operations in the Americas.
• L'Oréal Canada Incorporated - Canadian operations, based in Montreal
• L'Oréal Australia - head office is in Melbourne
• L'Oréal Nordic - head office is in Copenhagen, Denmark
• L'ORÉAL Deutschland GmbH - legal seat is in Karlsruhe, head office is in Düsseldorf

Research and development facilities

L'Oréal has 21 worldwide research and development centers: three global centers in France: Aulnay, Chevilly and Saint-Ouen. Six regional poles include one in the United States: Clark, New Jersey; one in Japan: Kawasaki, Kanagawa Prefecture; in 2005, one was established in Shanghai, China, another in India: Mumbai, one other regional pole in Brazil: Rio de Janeiro and, lastly, another was established in South Africa: Johannesburg.

Corporate governance

Jean-Paul Agon is the chairman and Nicolas Hieronimus the chief executive officer of L'Oréal. Françoise Bettencourt Meyers and Paul Bulcke are vice chairmen of the board of directors.

Stockholders

As of 31 December 2020:

• Breakdown of share ownership: 33.17% by the Bettencourt family, 23.20% by Nestlé, 29.6% by international institutional investors, 7.87% by French institutional investors, 4.59% by individual shareholders, 1.57% by employees.

Business figures

Countries with L'Oréal products available

In 2003, L'Oréal announced its 19th consecutive year of double-digit growth. Its consolidated sales were €14.029 bn and net profit was €1.653 bn. 96.7% of sales derived from cosmetic activities and 2.5% from dermatological activities. L'Oréal has operations in over 130 countries, employing 50,500 people, 24% of which work in France. 3.3% of consolidated sales is invested in research and development, which accounts for 2,900 of its employees. In 2003, it applied for 515 patents. It operates 42 manufacturing plants throughout the world, which employ 14,000 people.

• Cosmetics sales by division breakdown: 54.8% from consumer products at €7.506 bn, 25.1% from luxury products at €3.441 bn, 13.9% from professional products at €1.9 bn, and 5.5% from active cosmetics at €0.749 bn.
• Cosmetic sales by geographic zone breakdown: 52.7% from Western Europe at €7.221 bn, 27.6% from North America at €3.784 bn, 19.7% from rest of the world at €2.699 bn.

In 2007, L'Oréal was ranked 353 in the Fortune Global 500. The company had earned $2,585 million on sales of $19,811 million. There were 60,850 employees.

By 19 March 2016, the company had a share value of 89,542 million euros, distributed in 562,983,348 shares. Its reported operating profit in 2016 was €4.54 bn, based on revenue of €25.8 bn.

In 2023, L'Oréal witnessed the highest sales growth in 20 years. Indeed, it posted net earnings of 6.2 billion euros which represented an increase of 8.4%. Later in in 2024, it was reported that L'Oréal became number one in luxury cosmetics.

Joint ventures and minority interests

L'Oréal holds 10.41% of the shares of Sanofi-Aventis, the world's number three and Europe's number one pharmaceutical company. The Laboratoires Innéov is a joint venture in nutritional cosmetics between L'Oréal and Nestlé; they draw on Nestlé's knowledge in the fields of nutrition and food safety.

Corporate social responsibility

Group-wide sustainability plan

In 2013, L'Oréal announced a new sustainability plan it called "Sharing Beauty With All", committing to reduce the environmental impact of all products. According to Marketing Week, L'Oréal's pledges included "aiming for 100 per cent of its products to have an environmental or social benefit; reducing the company's environmental footprint by 60 per cent; empowering “every L’Oréal consumer to make sustainable consumption choices while enhancing the beauty of the planet”; and giving L’Oréal employees access to healthcare, social protection and training wherever they are in the world."

In 2021, L'Oréal launches a new sustainability plan "L'Oréal for the future" which contains a series of goals to achieve within 2030 on topics such as biodiversity, resource management, climate change and circularity.

Sustainable development

In 2009, L'Oréal declared their intention to cut greenhouse gas emissions, water consumption, and waste by 50% over the period 2005-2015 – a reduction in carbon dioxide emissions that is to be in part achieved by the use of solar panels, biogas and electricity and hot water produced from the combustion of methane gas recovered from agricultural waste. In 2012, the company declared a 37.1% reduction in CO₂ emissions, a 24% reduction in water consumption and a 22% deduction in transportable waste, and was named a sector leader by Climate Counts for its practices and achievements in the management of carbon emissions.

In 2014, L'Oréal made the commitment to ensure that none of its products were linked to deforestation, and to source 100% renewable raw materials by 2020. The group was included in the Corporate Knights "Global 100" list of the 100 most sustainable companies. In March 2023, L'Oréal announced its investment in Genomatica (Geno), a biotechnology company, to develop and manufacture 'biotechnology-based alternatives' to critical constituents in the formulation of 'cosmetic, personal care and cleaning products'.

Position on animal testing

Since the 1980s, L'Oréal has invested €900 million in researching alternatives to animal testing for product safety, using methods such as reconstructed skin models, such as the Episkin model at their research centres in Gerland, France, and Pudong, China.

Nevertheless, this is complicated by markets such as China, where it is difficult to sell a beauty product without animal testing. Cosmetics by brands such as The Body Shop, which refuse to do animal testing, are thus not sold in China.

In 2013, L'Oréal was part of a consortium calling on the EU to invest more in research on alternatives to animal testing.

Promoting new methods for plastic recycling

In 2020, L'Oreal announced a cooperation with French biochemistry pioneer Carbios, aiming to establish a method of dissolving plastic waste by using enzymes.

Ukraine war

In 2022, L’Oréal Paris donated €1 million ($1.09 million) to charities supporting refugees from the 2022 Russian invasion of Ukraine. L’Oréal Paris also suspended all commercial activity in Russia, both retail and wholesale. The company also supplies hygiene products to hospitals, maternity homes, centers with forcibly displaced persons, homes for the elderly, the military, etc. L’Oréal Paris financially support employees in Ukraine, guaranteeing the payment of wages and providing additional financial assistance, and provide accommodation for employees who are abroad and assist with temporary employment in other L'Oréal branches.

Community involvement and awards

In 2014, L'Oreal was listed 61st among 1200 of India's most trusted brands according to the Brand Trust Report 2014, a study conducted by Trust Research Advisory, a brand analytics company.

In 2008, L'Oréal was named Europe's top business employer by the European Student Barometer, a survey conducted by Trendence that covers 20 European countries and incorporates the responses of over 91,000 students.

The L'Oréal-UNESCO Awards for Women in Science was established to improve the position of women in science by recognizing outstanding women researchers who have contributed to scientific progress.

The awards are a result of a partnership between the French cosmetics company L'Oréal and the United Nations Educational, Scientific and Cultural Organization (UNESCO) and carry a grant of US$100,000 for each laureate.

The same partnership awards the UNESCO-L'Oréal International Fellowships, providing up to US$40,000 in funding over two years to fifteen young women scientists engaged in exemplary and promising research projects.

L'Oréal organises the yearly L'Oréal Brandstorm, a business game for students in 46 countries. The game is related to marketing and has a first prize of $10,000, the second prize of $5,000 and the third prize of $2500.

L'Oréal is also a founding member of the "Look Good ... Feel Better" project, a charity which was formed over 16 years ago to help women combat the visible side effects of cancer treatment.

L'Oréal also holds a global competition known as "L'Oréal Brandstorm" each year to invite students from around the world to be creative, innovative, and build their own business plans based around different topics (for example: Brandstorm 2019 was about sustainability).

In 2015, Standard Ethics Aei gave a rating to L'Oreal in order to include it in its Standard Ethics French Index.

Research and innovation

Episkin

Episkin is a reconstructed skin model developed by engineers at L'Oréal France to provide an alternative to animal testing. Human skin cells leftover from breast surgery are developed under in vitro laboratory conditions to form sheets of reconstructed skin. This has advantages over animal testing other than the sparing of animals: it can be adapted to create reconstructions of a range of skin colors, as well as younger and older skin, meaning that safety tests give more relevant results for humans.

In 2006, the Episkin division acquired SkinEthic, a leading tissue engineering company.

The aim for L'Oréal is to produce products that cater to their diverse customers specifically, in the emerging markets that currently account for 53% of the entire global beauty market. Through these research methods L'Oréal aims to tap into one billion new consumers in these markets for the upcoming years.

In 2003, the L'Oréal Institute for Ethnic Hair & Skin Research was inaugurated in Chicago to continue their research on African American hair and skin among other ethnicities. The L'Oréal Group opened the Predictive Evaluation Center in Lyon, France in 2011. This center is devoted to evaluating the quality of the products without testing on animals. Additionally, L'Oréal built an international "Consumer Insights" division as well as, regional Research and Innovation centres in six countries: Japan, China, India, the United States, Brazil, and France. The aim of these centres is to collect information on their diverse consumers in order to develop products according to their various needs. In 2011, L'Oréal announced its intention to build a Research and Innovation Center in Bom Jesus Island Rio de Janeiro, Brazil. Estimated at 30 million euros (70 million reais), this project is expected to create about 150 jobs by 2015.

The L'Oreal Global Hair Research Centre, a facility in Paris Saint-Ouen, opened in March 2012. It serves as the headquarters for the international departments of hair color, hair care, and hairstyling. One of the largest investments in company R&I history, the 25,000m² Centre hosts 500 employees. These include chemists, physical-chemists, opticians, materials scientists, metrologists, rheologists, computer scientists, and statisticians. The facility offers automation, modelling, and sensory evaluation.

Human skin 3D printing

L'Oreal announced in May 2015 that it was partnering with bioprinting startup Organovo to figure out how to 3D print living, breathing derma that can be used to test products for toxicity and efficacy. "We're the first beauty company that Organovo has worked with", said Guive Balooch, global vice president of L'Oreal's tech incubator.

Modiface

On 16 March 2018, L'Oréal announced that it had acquired Modiface, a beauty tech company that uses augmented reality to allow users to digitally try on different makeup products and hairstyles. Later in 2020, L'Oréal Paris introduced their first line of virtual makeup for social media platforms called "Signature Faces", an augmented reality filter for Instagram, Snapchat, Snap Camera, and Google Duo. It was in part marketed as a way to engage consumers spending more time online due to the pandemic, as well as a way for consumers to try on makeup at home for online shopping.

Perso

This smart device creates custom formulas for lipstick, foundation, and skin care. Customers can use it through the Perso app, which uses AI technology, and is expected to get launched in 2021.

Hapta

At CES 2023, L'Oréal introduced its newly developed innovation, Hapta. This product, Hapta, consists of a 'computerized makeup applicator' which is devoted to people with limited hand and arm mobility. Indeed, it facilitates for them the process of applying lipstick. This new applicator would able to 'mimic' different movements of a beauty routine through 'customizable accessories'. The motive behind this innovation is to meet the beauty needs of people with limited hand and arm mobility. According to L'Oréal, Hapta is expected to be launched by Lancôme in 2023.

L'Oréal brow magic

Another innovation by L'Oréal was announced at CES 2023 which is L'Oreal Brow Magic. This innovation is considered to be the 'first at-home' electronic applicator to facilitate eyebrow-makeup. In fact, it offers its users with immediate special and 'bespoke' brows.

AirLight Pro hairdryer

At the 2024 Consumer Electronics Show (CES), L'Oréal introduced an AirLight Pro hairdryer for both professional stylists and at-home users which uses up to 31 percent less energy than a conventional dryer.

Brand portfolio

L'Oréal lipsticks

L'Oréal skincare product

Brands are generally categorized by their targeted markets, such as the mass, professional, luxury, and active cosmetics markets. Galderma is directly attached to the head office. L'Oréal also owns interests in various activities such as fine chemicals, health, finance, design, advertising, and insurance.

Consumer products division

L'Oréal luxe division

Professional products division

Active cosmetics division

See also

In Spanish: L'Oréal para niños