LOREAL_Registration_Document_2017
1 Presentation of the Group Integrated report
GOOD GROWTH MOMENTUM FOR SHARED, LASTING DEVELOPMENT*
NET PROFIT AFTER ATTRIBUTABLE TO OWNERS OF THE COMPANY: €3,581 MILLION The finalisation, on 7 September 2017, of the disposal of The Body Shop leads to account for the businesses sold, for 2017, in accordance with the IFRS 5 accounting rule on discontinued operations.
Evolution 2016/2017
2017
2015
2016
€ millions
Net profit excluding non-recurring items after non-controlling interests
3,489.8
3,647.2
3,748.7
+2.8%
Non-recurring items net of tax
-192.4
-541.4
-167.2
Net profit from non-continuing operations
-
-
-
NET PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY
3,297.4
3,051.7
3,581.4
+15.3%
Cash flow statement, Balance sheet and Cash position Gross cash flow amounted to 4,972 million euros, an increase of 5.4%. The working capital requirement decreased by 261 million euros. Investments amounted to 1,263 million euros, representing 4.9% of sales. The net cash flow (1) , came out at 3,969 million euros, a strong increase of +19.6%. The balance sheet remains particularly solid with shareholders’ equity amounting to 24.8 billion euros, and net cash at 1,872 million euros at 31 December 2017.
Proposed dividend at the Annual General Meeting of 17 April 2018 The Board of Directors has decided to propose to the Shareholders’ Annual General Meeting of 17 April 2018 a dividend of 3.55 euros per share, an increase of +7.6% compared with the dividend paid in 2017. The dividend will be paid on 27 April 2018 (ex-dividend date 25 April 2018 at 0:00 a.m., Paris time). Share capital As of 31 December 2017, the capital of the company is formed by 560,519,088 shares, each with one voting right.
Operating profit, by operational division and geographic zone
BY OPERATIONAL DIVISION The finalisation, on 7 September 2017, of the disposal of The Body Shop leads to account for the businesses sold, for 2017, in accordance with the IFRS 5 accounting rule on discontinued operations.
2017
2015
2016
€ millions
% sales
€ millions
% sales 20.0%
€ millions
% sales 20.3%
Professional Products Consumer Products
678
689
669
20.0% 20.0% 21.9% 22.6% 20.8%
2,386 1,497
20.1% 2,417 20.7% 1,623
20.2% 2,419 21.2% 1,856
L’Oréal Luxe
Active Cosmetics
415
22.8%
431
23.2%
471
COSMETICS DIVISIONS TOTAL
4,976
20.5% 5,160
20.7% 5,415
Non-allocated (1)
-643
-2.6%
-654
-2.6%
-739
-2.8%
TOTAL GROUP AFTER NON-ALLOCATED 18.0% Non-allocated items consist of the expenses of Functional Divisions and fundamental research, stock option and free grant of shares costs, which are not allocated to the (1) Cosmetics Divisions. This item also includes non-core activities, such as insurance, reinsurance and banking. 4,333 17.8% 4,506 18.1% 4,676
After a difficult 2017, the profitability of the Professional Products Division came out at 20.0%. The profitability of the Consumer Products Division came out at 20.0%, representing a slight decrease of 20 basis points compared with 2016.
The profitability of L’Oréal Luxe, at 21.9%, strongly increased in 2017, which is an increase of 70 basis points. At Active Cosmetics Division, profitability came out at 22.6%. Non-allocated expenses increased by 2.8% of sales, mainly due to the increase in digital costs.
Net cash flow = Gross cash flow + changes in working capital - capital expenditure. (1)
REGISTRATION DOCUMENT / L'ORÉAL 2017
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