L'Oréal, the leading cosmetics group globally, has been given a Neutral rating by UBS.
The company has a diverse product portfolio, with skin care products accounting for 39.9% of its sales, followed by makeup at 19.7%, hair care at 15.4%, fragrances at 12.6%, hair coloring at 8.3%, and other products at 4.1%.
L'Oréal's net sales are divided into consumer cosmetics (36.9%), luxury cosmetics (36.2%), active cosmetics (15.6%), and professional products (11.3%). Key brands include L'Oréal Paris, Lancôme, La Roche-Posay, and Kérastase, among others.
The company sells its products through various channels, such as mass distribution, selective distribution, beauty salons, and pharmacies. In terms of geographical distribution, Europe accounts for 31.6% of L'Oréal's net sales, followed by North America at 27%, North Asia at 25.9%, Asia/Pacific/Middle East/Africa at 8.4%, and Latin America at 7.1%.
L'Oréal plans to strengthen its position in the global cosmetics market by operating 37 manufacturing sites worldwide by the end of 2023.