The letter to shareholders - N°78 - Spring 2021

Annual General Meeting


Chief Executive Officer of L’Oréal(1)


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“I would like to take this opportunity to present the roadmap for the Group and its teams who deserve the utmost respect for their unfailing commitment in these difficult times. Taking up the reins of your company after Jean-Paul Agon is an honour; an honour for which I am obliged to you dear shareholders, to the Board, and to each of L’Oréal’s 85,000 employees. 


I would like to expand on three key concepts that will punctuate and shape the Group’s roadmap over the next few years, with a watchword that reflects the thrilling task ahead: creating the future of beauty.


The first concept I would like to share with you today is continuity. Continuity in the transition between Jean-Paul Agon and myself. Over the past few decades, and especially over the past eight years, Jean-Paul and I have built a very close relationship and partnership. I have been actively involved alongside him in each of the Group’s transformational decisions. There could not have been a better preparation for this transition. Together, we are an effective team, and our relationship will continue to evolve on different terms, but in the same spirit of connection and proximity.

Continuity also concerns the pursuit of our performance goals. Top line growth is what will allow us to pursue and strengthen our investments in Research & Innovation and in our digitalisation as well as in data, tech, and, of course, human capital. Despite our leadership, our global market share is only around 13%, which gives us significant scope to grow.


My second source of conviction stems from my immense confidence in L’Oréal’s unique business model. We believe beauty comes from a combination of science and creativity. In the beauty industry we are the biggest investor in Research & Innovation, which represents 3.4% of total sales, and nearly one billion euros. Our brand portfolio is stronger than ever. It comprises billionaire brands including L’Oréal Paris, the world’s number one beauty brand, along with smaller brands that are growth drivers for the future. We have built a model based on universalisation in a world that is more fragmented and at times divided than it was, we roll out global brands which we adapt to local requirements. L’Oréal’s strength also comes from the competitive advantage we derive from the solidity and stability of our shareholder base, from its ability to constantly evolve, anticipate, change, and adapt.


The third idea is the prospect of a huge and thrilling challenge ahead: creating the future of beauty. The post-pandemic beauty market will be different because Covid has accelerated some very powerful trends, most of which pre-existed the crisis. They will have a longer term impact on the beauty market. These trends obviously involve digital, the need to protect the environment, the priority given to health and product transparency, and the importance of the values and purpose of the Group and its brands. And lastly, we have the return of science and technology, now centre stage at finding solutions to the world’s most pressing issues. 

For our part, we are ready to create the future of beauty.


The beauty of the future will be diverse and inclusive, in keeping with L’Oréal’s values. It will be sustainable, significantly supported and sustained by Green Sciences(2), largely driven by tech and the full array of possibility it offers. We will continue to shape the future of beauty by continuously reinventing ourselves. With the strength and passion of L’Oréal teams and with your help, together we will create the beauty that moves the world.”


(1) Since 1 May 2021. (2) Disciplines L’Oréal is moving towards to meet its sustainable development goals all while providing consumers with unprecedented levels of product performance.