Loreal 2015 Annual Report Download - page 6

Growth trends in the New Markets were contrasted, ranging
from difficulties in Brazil to very strong growth in countries
like Turkey and India.
And in terms of profit?
Operating profit grew strongly by +12.8%, with operating
margin reaching a record 17.4%. The year was also marked
by a strong increase of +15.7% in earnings pershare, at
6.18euros, and in the dividend proposed tothe Annual
General Meeting. Once again, these results demonstrate
the quality and robustness of our business model.
Last year you spoke about a more universal,
more digital and more sustainable L’Oréal.
How much progress has been made on these
strategic transformations?
In our sector, beauty – and indeed in other industries –
everything is changing at lightning speed: consumers,
communications, distribution and competition. So we have
stepped up our metamorphosis: the New L’Oréal is more
universal, more digital and more sustainable.
These are profound transformations that require huge efforts
from our teams, but this is quite simply essential to enable us
to adapt and strengthen our leadership over the coming
years. In fact, this is one of L’Oréal’s greatest strengths: we
never stop challenging and reinventing ourselves. At the
same time, we remain true to our fundamentals: a clear
mission statement, Beauty for All; adistinctive strategy,
Universalisation; a commitment to Research and Innovation;
a diversified portfolio of brands; a unique corporate culture;
and humanistic values.
What does a “more universal
L’Oréal” mean?
It means offering innovations perfectly
adapted to local aspirations and
needs. All over the world there is a
powerful appetite for beauty. At the
same time, people want products that
are suitable for their skin and hair type,
products that fulfil their desires, and
match their culture and beauty
routines. Thanks to our regional
Research and Marketing hubs, now at
full speed, our brands can be both
aspirational worldwide, and totally
relevant at local level. We will continue on the same pathin
2016, with the opening of a new Research Centre in
SouthAfrica.
And in digital, what progress have you made?
We made swift and substantial progress in 2015. Our online
sales totalled 1.3 billion euros, an increase of +38%.
E-commerce is now equivalent to
thegroup’s number five country. In
China e-commerce already accounts
for more than 20% of our Consumer
Products Division sales. And a quarter
of our media spending now goes to
digital communications.
Our digital presence reinforces our
competitive edge and extends our
leadership. It opens up thrilling new
horizons for our industry in direct and
personalised consumer relationships.
Just look at the success of NYX
Professional Makeup, our new digital
native make-up brand, and how brands
like REDKEN, LA ROCHE-POSAY and
KIEHL’S have amplified their momentum through digital
initiatives. It is up to us to surf as far and as fast as possible
on the online and connection waves.
INTERVIEW
Our objective
is to outperform
the market and
continue to deliver
solid growth
and profits
...
Jean-Paul Agon on a visit to Brazil.
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