The consolidated financial statements of L’Oréal and its subsidiaries (“the Group”) published for 2025, have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted in the European Union as of 31 December 2025.
On 12 February 2026, the Board of Directors closed the consolidated financial statements at 31 December 2025. The financial statements will not become final until they have been approved by the Annual General Meeting of shareholders to be held on 24 April 2026.
The Group did not anticipate any standards or interpretations not mandatorily applicable in 2025.
In April 2024, the IASB published IFRS 18 Presentation and Disclosure in Financial Statements, applicable from 1 January 2027 and adopted by the European Union on 13 February 2026. The Group is currently analysing the impacts of the standard.
The preparation of the consolidated financial statements in accordance with international accounting standards requires that the Group make a certain number of estimates and assumptions that may affect the value of the Group’s assets, liabilities, equity and net profit (loss).
These estimates and assumptions mainly relate to the estimated amounts deducted from net sales, the measurement of goodwill and other intangible assets, operating lease terms, provisions, non-current tax liabilities, pension obligations and share-based payments. Estimates used by the Group in relation to these different areas are made based on information available when the accounts are prepared and are described in detail in each specific associated note.
All companies included in the scope of consolidation have a financial year ending 31 December or close their accounts on that date.
All companies directly or indirectly controlled by the parent company L’Oréal have been fully consolidated.
Group companies that are jointly controlled with a limited number of other shareholders under a contractual agreement are consolidated under the equity method in accordance with IFRS 11.
Associates over which the Group has a significant influence have been accounted for by the equity method.
The assets and liabilities of foreign subsidiaries are translated at closing exchange rates. Income statement items are translated at average exchange rates for the year.
The resulting translation difference attributable to the Group is entered directly under equity under the item Cumulative translation adjustments, while the translation difference attributable to non-controlling interests is recognised under the Non-controlling interests item.
Goodwill generated on foreign companies is considered to form part of the assets and liabilities of the foreign company, and is therefore expressed in the entity’s functional currency and translated using the closing exchange rates in effect at the closing date. Goodwill recorded before 1 January 2004 continues to be recorded in euros.
