1.4.1.5 L’Oréal’s investment policy responds to long-term objectives
L'Oréal is a growing manufacturing company thanks largely to two types of investments:
- scientific and manufacturing investments, which are described in several sections (see mainly sections 1.3.4.1 and 1.3.4.3); and
- marketing investments, which are made on an ongoing basis and are inherent to the Group's activities in the beauty industry. Indeed, winning new market shares requires in-depth and situation-specific studies, as well as advertising and promotion expenses attuned not only to the familiarity of brands and their competitive position, but also to constant changes in consumers' aspirations - something that the subsidiaries' sales and marketing teams monitor constantly. Lastly, investments in point-of sale (POS) advertising materials ensure optimal presence for our brands in points of sale.
For reasons related to strategy and competition, L'Oréal cannot therefore provide any systematic information on future investments.
In 2025, the Group's investments totalled €1,495 million, or 3.4% of its sales. This level reflects the Group's constant efforts to improve manufacturing efficiency, research and digital development performance and enhance brand value.
Investments in 2025 can be analysed as follows:
- production and physical distribution, accounting for around 22% of total investments;
- marketing investments, including moulds, point-of-sale (POS) advertising and stores, accounting for 38% of total investments;
- IT investments, broken down into each of these categories, accounting for 26% of total investments; and
- research investments and investments in various local head offices, for the remainder(1).
Despite their strategic nature, none of these investments taken individually is material enough at Group level to warrant more detailed disclosure.
