L’Oreal: UK sales top £1.5bn for the first time
Sales at the UK arm of L’Oreal topped £1.5bn for the first time in 2024 as its profit continued to surge, it has been revealed.
The division of the French cosmetics giant has posted a turnover of £1.55bn for its latest 12 months, up from the £1.43bn it reported for 2023.
New accounts filed with Companies House also show that its pre-tax profit for the year grew from £220m to £248.3m.
L’Oreal said its turnover had increased because of “both value and volume related to market performance”.
It also put its profit rising because of “operational excellence with management of costs”.
L’Oreal UK’s sales and profit have been on the rise every year since they dipped in 2020 because of the pandemic.
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A statement signed off by the board said: “In 2024, the beauty market grew across all categories. The shift to e-commerce witnessed during the pandemic remains with market growth in the online business growing almost three times faster than bricks and mortar.
“In terms of sell-out, L’Oreal UK had a good performance in 2024, gaining market share across all channels and in fragrances, haircare and make up.”
During the year a dividend of £168.4m was paid to L’Oreal UK’s parent company, up from £148.6m.
A further dividend totalling £185.1m has also been proposed for its latest financial year.
Also in the year, the average number of people employed by the division rose from 3,366 to 3,451.
On its future, L’Oreal said: “Following in the previous years’ trend, 2024 remains dynamic and complex, with persistent inflationary pressures and interest rate hikes impacting consumer spending.
“The ongoing conflict in Ukraine, geopolitical tensions in other regions, and associated shifts continue to affect supply chains and contribute to cost volatility.
“In response, we have implemented proactive strategic measures to safeguard our profitability and mitigate these external challenges.
“We will continue to monitor the global situation and adapt our strategies as needed.
“We continue to perform well in our market and are also confident in the prospects of good growth despite the macro-economic circumstances.
“We expect our profit margins to be maintained at healthy levels nd there are no significant risks to the cash position.”