L'Oreal : Lancome maker L'Oreal hit by 320 million euros French tax charge
September 20, 2019 at 01:03 pm EDT
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PARIS (Reuters) - Cosmetics maker L'Oreal said on Friday it had reached a settlement with French tax authorities regarding three of its subsidiaries, including one linked to its luxury Lancome brand, resulting in a charge of around 320 million euros.
The world's biggest beauty manufacturer, behind labels like Maybelline and Armani lipsticks, gave no further details about the basis of the dispute, only saying it corresponded to a five year period between 2014 and 2018.
L'Oreal was not immediately available for further comment.
The settlement would be reflected in its 2019 results as an exceptional charge, and would "have no significant recurrent impact in the future", the company said in a statement.
(Reporting by Matthias Blamont; Writing by Matthieu Protard, Editing by Sarah White and Chizu Nomiyama)
L'Oréal is the world leading cosmetic group. The group offers skincare products (39.9% of sales), makeup products (19.7%), haircare products (15.4%), fragrances (12.6%), hair colouring products (8.3%) and other (4,1%). Net sales break down by family of products as follows:
- consumer cosmetics (36.9%): L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Essie Niely, Dark and Lovely, Mixa, MG and Carol's Daughter brands;
- luxury cosmetics (36.2%): Lancôme, Kiehl's, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Biotherm, Helena Rubinstein, Shu Uemura, IT Cosmetics, Urban Decay, Ralph Lauren, Mugler, Viktor&Rolf, Valentino, Azzaro, Prada, Takami, A?sop, etc.;
- active cosmetics (15,6%): La Roche-Posay, Vichy, CeraVe, SkinCeuticals, Skinbetter Science, etc.;
- professional products (11,3%): L'Oréal Professionnel, Kérastase, Redken, Matrix and PureOlogy brands.
Products are marketed through mass distribution and distance selling, selective distribution, hair salons and pharmacies.
At the end of 2023, L'Oréal has 37 production sites worldwide.
Net sales are distributed geographically as follows: Europe (31.6%), North America (27%), North Asia (25.9%), Asia/Pacific/Middle East/Africa (8.4%) and Latin America (7.1%).
L'ORÉAL 
