L’Oréal posts sales growth with signs of China demand recovery; share rise

Published 30/07/2025, 10:36

Investing.com -- L’Oreal SA (EPA:OREP) shares rose about 4% in Wednesday morning trade after the French cosmetics giant reported a rise in sales for the first half of 2025, with early signs of recovery in mainland China.

L’Oréal said on Tuesday that like-for-like sales rose 3% in the first half of 2025.

The French cosmetic company noted improving signs in both the U.S. and mainland China markets. Emerging markets demonstrated particularly strong performance with double-digit growth during the period.

Growth in mainland China - adjusted for the phasing related to the IT transformation - reversed from a slight decline in the first quarter to around +3% in the second with all Divisions positive, the French cosmetic company said.  

Morgan Stanley (NYSE:MS) analysts indicated that while expectations may have increased in some quarters following strong U.S. scanner data, this improvement will likely be reflected in third-quarter organic sales growth instead.

L’Oréal said net profit excluding non-recurring items rose 1% to €3.78 billion.

The company expects the global beauty market to continue improving in the second half of the year.

Currency headwinds weighed on results, with exchange rate movements reducing sales by 1.9% in the first half.

If current rates persist, the company expects a 3.7% full-year drag from currency effects.

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