2024 universal registration document

6.5 Notes to the financial statements of L’Oréal S.A.

6. 2024 parent company financial statements

6.5 Notes to the financial statements of L’Oréal S.A.

6.5 Notes to the financial statements of L’Oréal S.A.

TABLE OF CONTENTS TO THE NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

Highlights of the financial year

Reorganisation

As part of the ongoing simplification and streamlining of its activities in France during 2023, L'Oréal conducted the following transactions effective 1 January 2024:

  • merger of Soproréal (Aulnay-sous-Bois plant); followed by
  • partial asset transfer of the Soproréal and Open Manufacturing (OMA) units to a newly-formed Soproréal entity.
Acquisition of non-controlling interests

In August 2024, L'Oréal Groupe acquired a 10% interest in Galderma Group AG, allowing L'Oréal and Galderma to work towards forming a strategic scientific partnership and leveraging their undisputed expertise: Galderma across a broad range of dermatological solutions, and L'Oréal in skin biology, diagnostic tools and evaluation methods.

Other events

On 6 November 2024, L’Oréal placed a dual tranche bond offering for a total nominal amount of €1.25 billion (see note 18). The offering comprised two tranches:

  • a €750 million tranche with a 3-year maturity, with a fixed-rate coupon of 2.50% per year;
  • a €500 million tranche with a 7-year maturity, with a fixed-rate coupon of 2.875% per year.

Note 1 Accounting principles

The 2024 annual financial statements of L’Oréal SA have been prepared in accordance with French law and regulations, as set out in Regulation ANC 2014-03 (French Chart of Accounts) and generally accepted accounting principles and basic assumptions designed to provide a true and fair view of the company:

  • going concern basis;
  • consistency of methods between financial periods;
  • accrual basis of accounting.

Items recorded in the financial statements are valued using the historical cost method, except for fixed assets that have been revalued for statutory purposes.

The main accounting methods used are described below.

The comparability of results between financial years 2024, 2023 and 2022 has been impaired by two partial asset transfers (i) on 1 July 2023 to L'Oréal France and L'Oréal International Distribution, and (ii) on 1 January 2024 to the newly-formed entity, Soproréal.