Senior L’Oréal executives at the investor presentation for FY25.

The world’s largest beauty multinational, L’Oréal Group, saw solid revenue growth of +4% like-for-like (+1.3% reported) in 2025, though net profit fell by -4.4%. The sales rise came despite headwinds in the travel retail channel in Asia.

Company revenue reached €44.05 billion/$51.85* last year and net profit slipped to €6.41bn. All four of the French company’s product divisions achieved LFL growth, led by professional products with a standout +7.5% rise.

Nicolas Hieronimus, CEO of L’Oréal, described 2025 as “a defining year”. He said: “We delivered strong results regardless of the context, while profoundly transforming the group. As we had promised, organic top-line growth accelerated quarter after quarter, boosted by the step-up in our launch plan and supported by a gradually improving beauty market. At +4%, L’Oréal grew, once again, ahead of the market.”

All five of the company’s geographical regions were also positive on a like-for-like basis, though North Asia – the company third largest after Europe and North America – was more or less flat at +0.5% (see chart below). This was partially offset by the smaller regions of SAPMENA – SSA, which includes South Asia Pacific, Middle East, North Africa, and Sub-Saharan Africa, up by +10.9%, and Latin America, up +8.3%.

L’Oréal FY25 revenue breakdown by product category and region.

Travel retail still tricky

Traditionally, L’Oréal’s travel retail fortunes have been entwined with its long list of luxury brands, among them Prada, Valentino, and Yves Saint Laurent. In 2025, the L’Oréal Luxe division posted growth of +2.8% like-for-like (and flat reported) but with momentum accelerating in the second half of the year when growth reached +3.6%.

L’Oréal’ said it was “close to +5% outside travel retail in Asia” where the company said “the situation remained challenging”. In 2025, this marked a new milestone “as the division became the number one player in North Asia – securing market leadership across all regions”.

That achievement comes despite sales in North Asia growing by only +0.5% like-for-like (-2.2% reported) which suggests rival beauty houses fared much worse. L’Oréal said: “Excluding travel retail, where the overall ecosystem remained challenging, growth improved from flat in the first half to +4% in the second half. The company again said that it outperformed in all markets, including travel retail, thanks to what it describes as its “unrivalled brand portfolio and step-up in innovation”.

L’Oréal boosted in second half

The improvement was driven by mainland China, where growth accelerated from low to mid-single digits over the period, supported by gradually stabilising market conditions. L’Oréal outperformed the market both online and offline. In a selective market that saw a clear recovery in the second half, the luxe continued to outperform, boosted by strong innovation.

In the luxe division, as Hieronimus described group-wide, second-half growth saw a sharp recovery and it continued to outpace the market. Drivers included innovations and new consumer experiences from Yves Saint Laurent, Prada, Maison Margiela and Aesop.

In North Asia, dermatological beauty posted double-digit growth while professional products outperformed the market, boosted by the strength of Kérastase and e-commerce.

Hieronimus noted the strong second-half recovery in L’Oréal’s two largest countries, the US and China and “continued our emerging (markets) conquest”. He added: “We made L’Oréal stronger than ever through our transformation and continued to advance on AI, strengthen our R&I capabilities and implement our IT transformation.”

The CEO also reminded analysts in an investor call that the company has embarked on its most strategic and transformational M&A offensive to date – Kering Beauté. “This will further bolster our leadership in luxury beauty, adding highly desirable brands with significant growth potential,” said Hieronimus.

In 2026, despite macro uncertainties, L’Oréal is optimistic about the outlook for the global beauty market. Hieronimus added: “We are confident in our ability to keep outperforming it thanks to L’Oréal’s multi-division category strategy and to achieve another year of growth in sales and profit.”

During the reporting period, L’Oréal announced the acquisition of an additional 10% stake in Galderma, bringing its ownership to 20%. This larger stake reaffirmed the company’s ambition to participate in the fast-growing aesthetics market. The deal was completed on 10 February.

* FX conversions at today’s rate.

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