L'Oréal: Q1 Revenue of €12.15 Billion, Despite Heavy Currency Impact
L'Oréal reported a revenue of €12.15 billion in the first quarter of 2026, marking a 3.6% increase in published data. Driven by an adjusted comparable growth of 6.7%, the group has had a strong start to the year, outperforming a dynamic beauty market. However, negative currency effects, estimated at 5.5% as of March 31, significantly reduce the displayed growth and temper the clarity of results for investors.
Financial Performance Breakdown
The group recorded a revenue of €12.15 billion, up 3.6% in published data and 7.6% on a like-for-like and constant exchange rate basis. The discrepancy between these measures reveals the extent of shifts: the net effect of structural changes represents 1.5%, while growth at constant exchange rates reaches 9.1%. The adjusted comparable growth of 6.7% includes an IT phasing adjustment of 3.4% in Q1 2026 compared to 2.5% in Q1 2025. All divisions are progressing. Professional Products show the strongest dynamics with an adjusted growth of 13.1%, while Consumer Products are up by 4.1% and Luxury by 5.6%. Dermatological Beauty records a growth of 10.2%. Geographically, SAPMENA - SSA performs best with an adjusted growth of 15.4%, followed by North America at 7.6% and Europe at 5.5%.
Currency Effects and Market Dynamics
The impact of currency effects stands at 5.5% in negative data as of March 31, 2026. CEO Nicolas Hieronimus notes that L'Oréal is outperforming a dynamic beauty market by accelerating its market share gains worldwide. Each division exhibits outperformance: Professional Products are advancing in double digits in each zone, while Dermatological Beauty significantly outperforms in all its areas, driven by La Roche-Posay, CeraVe, SkinCeuticals, and Vichy. L'Oréal Luxe outperforms its selective market everywhere, particularly with fragrances. Recent acquisitions, including Color Wow in Professional Products and Medik8 in Luxury, contribute to this momentum. In China, a major zone, growth is significantly accelerating compared to the previous year, outperforming a gradually recovering market. However, Asian Travel Retail remains tense, with slightly negative growth, as difficulties in mainland China only partially offset by recovery in Hainan.
Confidence for the Remainder of 2026
L'Oréal expresses confidence for the remainder of the year 2026. Nicolas Hieronimus states: 'Our multipolar model, the determination of our teams, and our innovation power make me confident in our ability to continue to outperform and achieve another year of revenue and profit growth.' The group anticipates revenue and profit growth despite current geopolitical and macroeconomic uncertainties. Monetarily, extrapolating the exchange rates as of March 31, 2026, over the entire year, the impact of currency effects would amount to approximately 1.3% negative on the 2026 revenue. The acceleration of the group's innovation plan remains central to the strategy: recent launches in hair care, makeup, and skincare are beginning to yield results, particularly in skincare where the group observes encouraging signs. The group's leadership in E-commerce allows it to capitalize on this winning channel with particularly strong results in emerging markets and all zones.
