Good morning to all, and thank you for joining us for the presentation of our first half 2026 results. I'm here with our CEO, Nicolas Hieronimus...

Hello.

...our CFO, Christophe Babule...

Hello. ...and

our Head of Corporate Finance and Financial Communications, Laurent Schmitt.

Hello, good morning.

As always, Christophe will comment the first half results. Nicolas will then share his key highlights from the first 6 months and tell you why we remain confident in the outlook for the rest of this year and beyond.

After that, we'll open for Q&A. You can find the slides of both presentations on our website already.

You will be able to access the replay of this call later today, and the half-year report will be available at the beginning of next week. With that, over to you, Christophe.

Thank you, Eva. Ladies and gentlemen, good morning.

L'Oreal delivered an excellent first half. My 4 key highlights are the very robust adjusted like-for-like growth of 6.5%, the strong gross margin of 74.8%, up 10 basis points, the record operating margin of 21.3%, up 20 basis points, and the operating net cash flow of more than €3 billion, up 13.9%.

Sales increased by 5.8%, and foreign exchange had a negative 2.8% impact as the euro appreciated against most of our key currencies. If the exchange rates on the 30th of June were extrapolated until the 31st of December, the full-year impact on sales would be a negative 0.6%.

This is a clear improvement over the negative 2.5% we had anticipated at the start of the year. The change in scope of consolidation contributed 1.8%.

It reflects the acquisitions of Dr.G, Color Wow, Medik8, and Kering Beaute. It also includes the impact of hyperinflation accounting in Argentina and Turkey.

Note that excluding the impact from exchange rates, growth stood at 8.6%. Plus, on a like-for-like basis, growth came to 6.8% with a positive contribution from volume and value, especially mix.

As you can see on the left, like-for-like growth adjusted for the impact of our IT transformation amounted to 6.5%, pursuing the gradual acceleration from 3.2% in the first half and 4.9% in the second half of last year. On the right, you can see that growth was very similar between the first and second quarter of this year, despite the tougher comparison base in the second quarter.

As we are on the subject of our IT transformation, let's have a quick look at where we are in the process. This year, we continued our IT transformation in 3 additional clusters.

Australia, New Zealand, and UK, Ireland went live at the end of March; the US went live in early June; and by the end of the year, we'll have completed around 60% of our total IT transformation. Let's move on to look at our divisions.

Each of them grew on an adjusted basis. Professional Products posted exceptional growth of 11.6%, boosted by the ongoing boom in premium hair care.

Consumer Products grew 4.3%. L'Oreal Paris delivered exceptional growth driven by hair care.

Luxe advanced 5.1%, boosted by the recovery in China and the continued dynamism of fragrances. At 10.6%, Dermatological Beauty delivered a third consecutive quarter of double-digit growth with both skin care and hair care contributing.

Let's now move to growth by region. All 3 developed regions posted solid adjusted like-for-like growth.

At 6.1%, Europe remains very robust. All countries grew, and all divisions contributed.

At 6.7%, North America maintained its strong rhythm, thanks in particular to Professional Products and Dermatological Beauty. In North Asia, sales grew 4.6%, and 6.1% without travel retail.

The key contributor was the acceleration in China driven by the continued recovery in Luxe. Emerging markets was the most dynamic region, growing at close to 10%.

SAPMENA-SSA advanced at an impressive 13.8%, and in a more challenging context, Latin America grew at 5.2%. Finally, let's look at our categories.

Each of them progressed. With growth of 15.6%, hair care was the most dynamic.

Each division contributed strongly, growing in double digits. Fragrances maintained their double-digit pace at 10.3% with strong contributions from Prada, Valentino, and Aesop.

Skin care accelerated strongly to 5.8% as Dermatological Beauty maintained its double-digit rhythm and Luxe gradually improved. Hair color advanced by 3.5%, driven by Consumer Products; Professional Products gradually accelerated.

Finally, makeup grew by 2.5%, which was penalized by service levels in the Americas. Next, I would like to share our e-commerce performance with you.

E-commerce grew by 18%, almost twice as fast as the market, and reached €7.4 billion in sales. Compared to the first half of last year, that's an increase of over 200 basis points for the group.

In emerging markets, the weight of e-commerce rose by more than 400 basis points. Meanwhile, our brick-and-mortar business grew 2.5%, thanks to strong partnerships with key retailers.

Let's now move to the P&L. In a context of ongoing economic and geopolitical tensions, we delivered strong results.

Gross profit amounted to almost €18 billion, resulting in a very strong margin of 74.8%. Research and innovation expenses, coming in at nearly €700 million, broadly stable at 2.9% of sales, in line with the long-term average.

Advertising and promotional expenses stood at almost €8 billion, or 32.6% of sales, a 70 basis point increase to put fuel behind driving our innovations and supporting our newer brands. SG&A expenses of €4.3 billion decreased by 70 basis points in relative terms, reflecting our continued focus on cost control and operational efficiencies.

Operating profit increased by 6.8% to €5 billion. The operating profit margin advanced by 20 basis points, reaching a new first-half record of 21.3%.

First, let me remind you that L'Oreal is managed on an annual basis. Therefore, the profitability of the group and the divisions in the first half cannot be extrapolated to that in the full year.

Each of our divisions reported operating margins above 22%. The margin of Professional Products stood at 23.3%, up an impressive 90 basis points.

The Consumer Products margin increased by 20 basis points to 22.7%. The margin of L'Oreal Luxe stood at 22.1%, 20 basis points below last year, due to the small dilutive impact stemming from the first-time consolidation of Kering Beaute.

The Dermatological Beauty margin increased by 20 basis points to 28.4%. Non-allocated expenses, consisting mainly of corporate and fundamental research costs, were stable at 2.3% of sales.

The net financial charge came in at €187 million. Total dividends received amounted to €366 million.

Income tax, excluding non-recurring items, stood at €1.3 billion, an increase of 7.2%, representing a rate of 24.5%. Net profit, excluding non-recurring items, amounted to €4 billion, and therefore, diluted earnings per share came in at €7.40, up 4.8% compared to last year.

Non-recurring items amounted to a negative €413 million, in line with the first half of 2025. First, other income and expenses stood at €301 million and included €50 million related to various restructuring projects, €169 million related to product liability lawsuits, and €42 million mainly of acquisitions related costs.

Second, non-recurring tax items came in at €112 million, including the exceptional €188 million, the surcharge approved by French Parliament. Considering all non-recurring items, net profit attributable to owners of the company came out at €3.5 billion, an increase of 5.3% year-on-year.

Gross cash flow of €4.8 billion was up 9.7%. Our working capital amounted to €952 million, up from €861 million last year.

Capital expenditure stood at €760 million, or 3% of sales. Therefore, operating net cash flow of €3.1 billion increased by 13.9%.

Following the payment of our 2025 dividend, as well as the acquisitions of Kering Beaute and the additional 10% stake in Galderma, residual cash flow was a negative €9.8 billion. The balance sheet remained robust, with shareholders' equity of €33.9 billion, or half of the total balance sheet.

Last, at the end of June, net debt amounted to €12.7 billion, and to €10.3 billion excluding financial lease debt. The gearing ratio stood at 37.4%, and the financial leverage at 1.2 times.

The financial situation remains healthy, and all else being equal, we estimate that our leverage will be below 1 turn at the end of the year. Thank you for your attention.

Thank you, Christophe, and good morning to you all. I'm now happy to comment on our results for the first half.

Our second quarter kept the strong rhythm of the first, and we delivered the promised acceleration versus 2025. Let me share with you how stepping up our innovation game has led to delivering this strong first half, why we are confident in the second half, and why we are stronger than ever to keep winning.

We delivered a strong first half. Since the start of last year, adjusted like-for-like growth has been accelerating semester after semester, from 3.2% to 4.9% to plus 6.5% in the first half of this year.

Global market growth has been accelerating since the start of last year, and stands at around plus 4.5% in the first half of 2026. The grimmer the economic and geopolitical headlines, the more consumers crave an affordable, feel-good treat, or as I like to call it, the dopamine effect of beauty.

By region, market growth was well above last year's in North America and North Asia. Europe and SAPMENA kept their rhythm.

The only region which growth was below last year was Latin America, and we are starting to see first signs of stabilization there. In that context, we increased our outperformance and expanded our market share.

Let me give you some of my personal highlights. By region, the clear winner was SAPMENA.

It delivered broad-based, mid-teen growth, despite the ongoing crisis in the Middle East. Special shout-out to Vietnam, up over 50%, and to India, which saw a strong acceleration at plus 17%, well ahead of the market.

North Asia accelerated semester after semester, driven by the ongoing recovery of the Luxe Division in China, which advanced by 10%. By division, PPD maintained its stellar momentum.

It grew almost plus 12%, outperforming the professional market more than twofold. LDB is back in the game, having delivered a third consecutive quarter of double-digit growth led by CeraVe.

When I look at growth by brands, I'm very happy to see that many of our historical brands have kept the spring in their steps. L'Oreal Paris was the number one growth contributor to the group.

Kerastase, created by us 60 years ago, was up in the high 20s. La Roche-Posay and YSL, both in the L'Oreal family for decades, advanced in mid-teens.

I think that should kill the myth that L'Oreal grows only thanks to its acquisitions. It doesn't mean that more recently added brands have not been on a roll, take Prada with growth over 30%.

By category, hair care continued to grow in double digits on the back of strong launches in all relevant divisions. Did fragrances, driven by a combination of strong pillars like YSL Libre, now the number one female fragrance worldwide, and successful new launches like Prada Paradoxe and Armani Power of You.

What's behind this successes? Number one, of course, our innovation.

Since our beauty stimulus plan kicked into gear at the start of last year, the change in sales contribution from new products has been accelerating each semester, from 100 basis points to 200 basis points in '25 to 250 basis points in the first half of 2026. There have been many successes, and you can see a selection of them on this slide.

Second, our e-commerce leadership. Online contributed to be the fastest-growing channel for beauty globally.

It is a channel where we over-index and where we outperform. In the first half, we grew plus 18%, almost twice as fast as the market.

We continued to win on Amazon and accelerate on TikTok Shop, among many other platforms. At the same time, we grow in brick-and-mortar importance, as it's the in-store experience that creates the magic in beauty.

Three, our consumer engagement, which is at the heart of what we do and which we are winning thanks to the unique combination of our scale and agility. In an increasingly fragmented landscape, we master every facet of consumer engagement, from our one-of-a-kind Lorealistars community that brings together thousands of influencers worldwide to AI-based innovations that pioneer the way people experience beauty.

We are continuously growing our share of beauty influence, which stands at approximately 29%, and we are building the future of the consumer journey. Fourth is our multi-division category conquest, and let me give you 2 examples.

We continue to double down on hair care as the category becomes more sophisticated, and thanks to our broad-based innovation strategy, our brands are winning in each division, whether Elseve in mass, Kerastase in professional, or Dercos and CeraVe in derma. All are growing well into double digits.

Skin care is on its way up, contributing 1/3 of our growth in the first half, and confirming last year's acceleration, LDB delivered double-digit growth led by CeraVe. Luxe was boosted by the ongoing recovery in China, where Helena Rubinstein is going from strength to strength.

In Europe, Mixa delivered another semester of growth well into the 20s. There is a lot more to come as opportunities abound in this category.

Fifth, our P&L. Christophe has already commented on our very virtuous first-half P&L, and as you saw, our finance teams continue to exercise strict control over our SG&A.

This allowed us to increase our A&P by 70 basis points, mostly behind the innovation surplus of our beauty stimulus plan, as well as the rebound of China. This allowed us to finish the first half strongly, and is a good omen for the rest of the year.

That's why we are entering the second half with confidence and intend to keep our pace. In the full year, we expect the global beauty market to grow somewhere between 4.5% and 5%, and we expect to keep outperforming this market.

Far, July is off to a very good start, and our teams are confident for the rest of the year. Why?

First, because our beauty stimulus plan will remain in full swing. We continue to roll out our launches of the last 12 months, and we have another strong lineup across all our divisions ahead.

Second, skin care will affirm its comeback, as I just described. In addition, we're rolling out some of our smaller brands: Dr.G, the number one skin care brand in Korea, will travel to China and the US in the second half; and Medik8, a star performer since its acquisition, will start its global expansion, the brand is currently present in just 2 countries.

Third, acquisitions will pull their full weight. Creed will be consolidated for the whole of the second half, and the brand is currently growing double digits.

We will, once closed, consolidate Innovist, our acquisition in India. Fourth, North Asia will continue to support growth.

The recovery in China continues; it is driven by Luxe, which clearly plays to our strengths. In addition, we expect a return to normal in travel retail Asia over the course of the second half, especially in the fourth quarter.

We are more ready than ever to keep winning in the long run. First, beauty runs on 2 engines: dopamine, or pleasure; and health, feel good and live well.

Dopamine is beauty as indulgence: a scent you love, a texture you enjoy. Health is beauty as wellness: a quest for longevity and skin rejuvenation.

L'Oreal is well-positioned to fire on both engines, and there is no other company that can do that. We have decades of olfactory science and texture innovation to fuel the indulgence of beauty at scale.

Our best-in-class R&I drives the extension of beauty into health. With over 15 years dedicated to longevity research, we're uniquely positioned to offer advanced beauty protocols like Lancome Longevity MD or Kerastase Chronologiste.

Or take GLP-1. Rapid weight loss leads to skin sagging and hair thinning, issues we address with launches like SkinCeuticals A.G.E.

Interrupter, Redken Acidic Bonding, and Kiehl's Collagen Shots. Second, we're only scratching the surface of our adjacencies.

In body care, where consumers are looking for more performing products, we continue to build on the strength of our derma brands, and Mixa. We leverage Aesop in the selective market of indulgence, and we're launching NYX in mass body oil.

In the first half, body care grew in double digits across all divisions. The entry of Vichy into beauty supplements is off to a promising start, and we will begin the Europe-wide rollout of Vichy Collagen from next year on.

Third, our portfolio is becoming ever stronger. In late June, we announced the anticipation of the Gucci license by 1 year.

This means that our teams will kick off the transition in September and launch the first products as early as 2028. I'm extremely excited about what lies ahead.

Gucci is one of the most iconic brands in luxury, and we have an unrivaled track record of turning beauty licenses into success stories. Prada and Valentino went from less than €100 million to over €700 million in sales in just 4 to 6 years.

YSL is a €3 billion brand in beauty, on par with fashion. The potential is huge, given that for Gucci, sales in beauty are only a fraction of those in fashion.

Fourth, AI. For us, AI means several things.

It means accelerated innovation. R&I is the metier that has been the most augmented by AI.

In the last 4 years, the number of molecules we analyze has increased exponentially. This allows us to launch more new products faster every year and to keep outperforming the global beauty market.

AI also means augmented imagination. In our CreaTech Studios, we create over 500,000 pieces of content each month to drive social-first engagement across our key platforms.

We were an early adopter of AI, and as with every tech disruption, we quickly accelerated its adoption across the entire organization. We better understand and influence consumer journeys, we augment all our metiers, and we augment our 90,000 employees.

Earlier this month, I took my full Comex on a learning expedition to the Silicon Valley, a trip that confirmed our belief in the huge benefits that AI will have for L'Oreal. I will stop there on that topic, because I know that many of you will come to Paris for an AI deep dive later this year, I do not want to spoil that.

Let me conclude. The global beauty market is dynamic, boosted by consumers' insatiable appetite for beauty and supported by favorable demographic trends.

We have every intention to keep winning. We are on a roll.

Our innovation engine is running at full steam. Our digital moat is further strengthened by our AI transformation.

The breadth of our portfolio allows us not just to seize all growth opportunities, but to amplify them across categories, channels, geographies, and price points. L'Oreal is truly one of a kind to me.

We are a unique blend of luxury, of dermatology, of consumer products, of tech, of professional services, and it's all about beauty, but beauty on steroids. I thank you for your attention, and we are ready for your questions.

Thank you very much, and good morning, Nicolas, Christophe, Laurent, and Eva. 2 questions...

Guillaume.

Hello.

2 questions for me, please. The first one on Europe, because it seems you keep on very materially outperforming the market there, and it's broad-based, all divisions outperforming.

Can you maybe shed some light on the L'Oreal winning playbook in the region, and particularly if you can touch on online, how big it is now for Europe and how fast it is growing? Then looking ahead, do you see this impressive 6% like-for-like as a sustainable run rate, or should we anticipate at some point some gradual normalization towards levels we've been more used to, more like a 3% 3% to 4%?

Then my second question is on Greater China, strong performance in the first half. Can you maybe help us unpack this performance, and particularly what you saw in Q2 around 618, how it played out for the industry as a whole and for L'Oreal in particular?

Again, if we think about the second half, you cycle tougher comps. Do you remain confident about further acceleration, or at this stage, just maintaining the current run rate would already be a strong achievement?

Maybe just a side question on China, but I saw that you mentioned Yue Sai in the press release, Yue Sai doing quite well. Does the success of Yue Sai make you want to own more local brands in China?

Thank you very much.

Guillaume, if I'm not mistaken, that's 4 questions, but we'll try to...

Apologies, sorry.

We'll try hard to indulge you. On Europe, I think you're right to say it's an impressive performance, because this is where obviously we have our highest market share, above 20%.

Let me try to unfold it. The great thing about Europe is that the market continues to be impressively dynamic.

It's up mid-single digits, which is great, considering everything which is around there, and once again, probably demonstrates that beauty is not only essential, but a great way to boost your morale and feel better in this crazy world. There are different dynamics in markets.

South of Europe, UK, Ireland are more dynamic, but France is positive. Mid-sized markets, which is more Eastern Europe, are very dynamic too, the market's dynamic.

We keep on outperforming it across all divisions quite significantly. Here, it's a mix of category.

Europe is one of the regions in the world where we have the biggest weight in hair care, and as hair care is pretty dynamic, that helps us. It is also, as you mentioned it, a contribution of e-commerce.

This is one of the regions where we have the biggest acceleration in e-commerce, with the development particularly of Amazon in this part of the world. Then, probably what you don't see is the fact that over the last 5 years, we've been transforming our organizations, our processes at high speed in Europe, both through clusters, regrouping countries, and therefore freeing some SG&A and having more resources to fuel our brands.

The transformation was done with our ERP, where Spain, Portugal were the first to go, and it has made them stronger and more agile, and we're seeing the same thing right now in UK and Ireland. It is good, and even our sell-in in Europe is slightly below our sell-out.

It's good, and I guess also I should never forget to mention that we have great teams in Europe, and they're working really hard. It's also a big fragrance region, fragrance and hair care are really doing good there.

That's the positive thing about Europe. I'll switch to Greater China before talking about the growth pace, the big question.

In China, we have seen indeed the market stabilizing at a growth of around 2% over the last quarters, but the good thing is that there's been a shift back to more premium. The mass market has turned negative, slightly negative, but negative, whereas whether it's the Dermatological Beauty or the luxury markets are close to a 7% growth, which is much better than what it used to be.

Clearly, it plays to our strengths, our strength in luxury, as we are the dominant player with, depending on the periods, around 30% market share, and we have been winning share, as you saw, on this 7% growth with a plus 10% in sell-in. It's true also on Derma Beauty, where we have 2 phenomenons.

We have the acceleration, I would say, of in Chinese terms the more affordable brands, which are CeraVe and La Roche-Posay, but really a striking performance of SkinCeuticals, which is a bit like Kerastase, a more premium part of the catalog. We were in a very negative combination if you look a year back, which was mass growing and all the Chinese brands growing, and we were fighting with our other divisions, and here, it's a reverse.

Many Chinese brands are declining steeply. It was very visible in 11.11 and on 618.

The premium brands were growing. As you were asking about 618, the market we're trying to compute in net sales, because there's a lot of returns happening, sometimes if you look at the GMVs that are published here and there, you don't have the right picture of the market.

Our estimation was that the market was up 10% in 618, which is pretty good, total market. We beat that growth slightly and retained our position, and we had the number one brand in each of our respective univers: L'Oreal Paris number one across all beauty brands, Lancome number one in selective, SkinCeuticals in derma, and Kerastase in professional.

We'll see on the second half. As always, we have to be careful, but I would say that Chinese consumer confidence, and especially Chinese with savings and money, is improving.

The stock market is being better. There's a big tech growth and hype in China, and I feel that at least consumers are a bit more eager to spend their money on premium products.

We bet on a continuation of this over the second part of the year. A quick word on Yue Sai: indeed, it has very significantly picked up after, I must say, years of not so great performance.

We seem to have found the recipe, and we're happy to have a Chinese brand. Whether we'll have more in the future, we'll see.

It's always a question of opportunity and of having the right targets, but there's nothing being planned. As far as the 6% you were referring to as the pace, should it be the pace, the only thing I can tell you is that we have every intention to keep that pace, and we'll try to do our best to make it happen.

Strong intention.

Yeah.

Very clear. Thank you very much.

Yes, good morning, everyone. Thank you for taking my questions.

I have 2. The first question relates to skin care.

You mentioned that the category accelerated in the first half. Could you provide a bit more granularity on the performance across the 3 divisions?

Also, it appears skin care accelerated within L'Oreal Luxe. Is this acceleration driven primarily by the ramp-up of Medik8, or are you also seeing broader strengths across the rest of the prestige portfolio?

On Medik8, quick follow-up question, if I'm not mistaken, the brand is planning a major launch with Sephora in the US. Do you believe you have the potential to replicate the success of that brand like CeraVe achieved, even so obviously they are not in the same category?

My second question relates to A&P that increased by 70 bps year-on-year, and at the same time, SG&A declined by roughly the same magnitude. Should we view the reduction of SG&A as structural, and how should we think about the increase in the A&P spending going forward, because I had initially expected this ratio to stabilize or eventually decline, particularly with the rollout of BETA AI?

Is the increase primarily driven by the changes in the sales mix with, for example, a greater contribution from fragrances, which tend to be probably a bit more A&P-intensive? Thank you.

Okay.

Yes, on skin care, indeed, we have seen improvement, and we are back to mid-single-digit growth. As you saw, it's close to plus 6%, and it's above the market.

It's not true across all our divisions. It's very obviously a very strong performance in LDB, and I'm very happy about that, because if you all remember, we had a few quarters of doubts on whether this dynamism that we've seen the previous year had reached a plateau.

As I told you, it just took a bit more innovation on CeraVe to bring the machine back to growth, and CeraVe is in mid-teens and doing great, the biggest driver of growth to LDB. La Roche-Posay is not far.

By the way, it's just a detail, but we launched CeraVe sun care this year, and it's doing great. If you haven't tried it, I invite you to try it.

The combination of great filters and ceramides is fantastic for skin. LDB is really very, very strong on skin care.

Luxe is improving, and for Luxe, it's a combination of 2 factors. One, indeed, is that you have a brand like Medik8, which is growing close to 50%, but it's still relatively small, but it is contributing, and I'll get back to your question around CeraVe.

You also have the fact that China, which is the biggest skin care market in the world, going back to growth, and us outperforming the Chinese market is clearly a contributor, with brands like Lancome, but also Helena Rubinstein doing very good in China. Luxe is back to positive, above its market, whereas CPD is slightly behind the market.

We have, of course, the opposite effect in China, because mass is not positive in China. I would say the Garnier Pocket Sun launch is doing well.

It was intended initially only for the emerging, and it started when we decided to launch it in Europe with great results. We have a few more initiatives on L'Oreal Paris coming in the second half.

As you've heard, next to the Mixa performance, Thayers performance, we have decided to accelerate the rollout of Dr.G. We keep on hearing about how Korean beauty is hot, and so on and so forth.

We have the number one skin care brand in Korea, I really told the team, "Guys, let's go fast on that one." Typically, Dr.G will be launched in the US at the end of the year.

It's already in China, but it's more a relaunch, because it was there a bit marginally before. It's doing good in Southeast Asia.

We have a number of initiatives, but it's fair to say that today, or at least in the first half, CPD is not delivering the acceleration yet in a significant way on skin care. As far as Medik8 compared to CeraVe, you said it yourself, they are 2 very different not brands, of course, but also distribution strategies.

CeraVe is a mass medical brand, the idea that you could roll it out in mass channels pretty quickly. Medik8 is more selective, but we have a lot of ambition in the US with the support of Sephora.

It's a brand that has fantastic formulas that consumers love, and so we'll focus on the big US opportunity, probably also Europe. It would probably not go as fast as CeraVe, but still, we have a lot of ambition for that brand, because it's a unique combination of premiumness and dermatology, which was a neat gap in our portfolio, and a fast-growing sub-category in the world of skin care.

I would say good progress on skin care overall, not equal across all divisions, the good news is that if we fix what's not doing great, it should get even better. As far as P&L, I will pass the mic to Christophe, and I'll add color to it if necessary.

Yes, Charles, you are mentioning this step-up in our investment financed in a certain way by our SG&A. First to answer your question regarding the SG&A, yes, of course, we want to keep working on the productivity of our organization.

Of course, 70 basis points first half cannot be projected on the full year, because depend on the phasing of certain project. Definitely, as that's why we are investing in our IT transformation, that's why we are investing in AI.

It's definitely to look for those synergies that we know where to find. Probably we could expect on a yearly basis, based on the past also experience, around 20 to 30 basis points improvement if we keep with the same rhythm of growth.

That's very important, because it helped, of course, to finance when there is the opportunity, finance the support of new launches, finance our new brands, and that's what we did in the first half. 70 basis points, it's to help on innovation that are extremely strong this first half, but also we have also some impact like the regional mix.

That when China wakes up and SAPMENA, it has an impact on the overall investment that we have, and some other mix like the distribution mix. It was really to push our new brands and our innovation, and some specific issues like the Prime Day that this year was in June and not in July.

Sometimes you have to be opportunistic. I still continue to believe that we are getting more productive on our A&P, but in the end, we had this surge of innovations, which are all doing great.

We had a good work and good news on the gross margin at 10 basis points, despite 20 basis points of negative impact of the tariffs, and we wanted to deliver 20 basis points of profit increase. We saw the opportunity, and we went for it.

That's also a way to increase our market share and to start the second half of the year launched, as one says, and with a good dynamic.

Thank you very much.

Good morning, Nicolas, Christophe, Eva. It's Warren here at Barclays.

I've got a few as well. First one is on SAPMENA.

Stunning performance in Q1 and again in Q2. Nicolas, you called out Vietnam and India.

Can you talk about the sustainability of this growth? Are we at the tipping points in places like Vietnam?

I'm just interested to know, not so much in percentage terms, but how big in absolute terms could SAPMENA be, and how are you allocating capital to this region? Then related to that, can you maybe talk about India specifically, and the acquisition of Innovist?

It looks interesting. Looks like a very high multiple.

Is it worth it? What's it bringing to the party?

Then finally on Gucci, this wasn't in the statement, but I saw in an interview that you were talking about tripling revenues on Gucci. What are the priorities, and how would you contrast it versus YSL, where I think you've 10x-ed that business?

Just interested to hear the compare and contrast on that when you get the license. Thank you.

Okay. On SAPMENA, it's clearly a priority.

As I said, emerging are the new growth relays. This is where most of the new consumers both to the market and to L'Oreal are going to be coming from.

That's why we are doubling down on this region, where we have also invested a lot. It was one of the first regions where we started developing our content factories boosted with AI and new types of organization to boost our e-commerce strength, because it's clearly a region where e-commerce is accelerating a lot.

We are really having very strong growth in e-commerce there. I'm not going to give you the weight SAPMENA represented L'Oreal, but it's true that we have overall in this region a market share that, if I'm not mistaken, is around 12% to 13%, when our global average is 16%, and of course Europe 20%.

We have lots of growth opportunities. In India, it's even a bit lower, clearly it's a focus.

The good news is that e-commerce is really doing great, and we are, I would say, getting better at playing the TikTok Shop game, which was probably a new playground where we had to understand how to make it work profitably. We see that typically in a country like Indonesia, we're doing much better with both content management and brand support.

The other good news is that all divisions are growing. Of course, it's more a mass and Dermatological Beauty play, because the products need to be more affordable, CeraVe is a great weapon of growth there.

Of course, we don't see SAPMENA today, you were asking about capital allocation, it's not a region that is massively dilutive to the group. In this region, you've got Australia and New Zealand, which are very profitable.

Overall, because it's mostly e-commerce driven, we manage to make this very sound in terms of economics. We don't have a lack of resources, and top-line growth really self-fuels the resources they need.

Of course, we monitor this on a monthly basis. I don't know if you want to add something on that, Christophe?

We have flagged, of course, India and the whole region as a strategic region for growth. That's why we are, of course, looking at any opportunity first to support the organic growth, and that's what we did in India with the launch of both Dermatological Beauty and Luxe division.

We are stepping up also our industrial capabilities there, and whenever there is an opportunity, of course, we go for some acquisitions, and that's what we did with Innovist.

Yeah. Just going back to Innovist, first of all, in the end, we have good positions in some categories in India.

Typically, we're strong in hair care, strong in makeup with Maybelline, which is a strong brand there. We're beginning to see a surge in fragrance usage there, and skin care is a category where we have to accelerate, and we have first of all a big drive right now on CeraVe.

We are opening CeraVe, I think right now we're probably around 7 or 8 cities in India and expanding, and there's very good response. We created some specific textures to match the Indian climate, which is hotter, needing lighter textures.

We have our existing international brands are growing, because the plus 20 we have in sell-out on a market that plus 10 or 11 year-to-date is made only with our existing portfolio. It's true that Innovist, and we've been looking at Indian opportunities for a while, and what we like about Innovist is that, first of all, it's got 2 brands that are very interesting and original: one is more skin care hygiene, and the other one more hair care.

It's also an e-commerce platform which has been very well-developed, well-crafted with good KPIs, which is both a source of growth for that brand, but also a learning curve for us on how to manage an even more dynamic e-commerce in India. All in all, I think it's a very promising acquisition.

You were talking about multiples. I can tell you that compared to the traditional multiples of the Indian market, which is a very expensive market as it relates to M&A, and compared to some others that we studied and passed upon, it is a very decent one, probably because we came in early enough, and it will be a great addition to our Consumer Products division.

The closing should happen in Q3, and then we'll start seeing how we can support them and how they can support us. That's for India and Innovist.

To finish on Gucci, well, the journalist from the FT put words in my mouth that I didn't pronounce. What I said was that I believe that Gucci has to become, because she asked me whether Gucci would become a billion-euro brand, and I answered, "It should be a multi-billion-euro brand," because if Saint Laurent is €3 billion, I guess Gucci has to get bigger at some point.

It will take time, because, first of all, now that we have anticipated the license, our team will be built and set up to start working on the 1st of September. We'll work on new projects that will probably appear in '28.

We'll get the products and turnover back in July '27. It will probably take time, but I am super ambitious for that brand.

It's a beautiful brand. I was happy to see I was a bit in the know, but that the Gucci numbers are getting a bit better, that the Demna takeover of the license of the couture is appealing to fashion addicts, and it's always good, that's why anticipation was important to synchronize the reacceleration of beauty with the reacceleration or rebirth of fashion.

It will take some time. As far as your question on how do we manage with the other fashion brands?

That's what we do. We make sure that each brand has a different persona, a different target, a different way to express beauty, and that we've developed Saint Laurent next to Armani, and we are now developing Prada and Valentino without any negative impact on the other brands.

Actually, there's a bit of emulation amongst our teams. I guess we'll do the same with Gucci.

It's too early to say, because we haven't really opened the trunk or seen what's in the engine, but we love the brand, and we have a very good partnership with Kering, I guess you should be very very positive. We only start working in September, you'll have to wait a couple of quarters to see the first impacts.

That's super, Nicolas. Thank you.

Hi, good morning. Thank you.

Firstly, I wanted to just follow up on something you were talking about earlier, Nicolas. You made some really interesting comments about the organizational changes with the clusters, how that's helped you be more agile and I guess ultimately grow faster in Europe.

I just wanted to push you a bit more on this. I would love to hear more about it.

I don't think you talk about it very much. Can you help to sort of bring it to life for those of us outside of the business, how specifically have those changes driven improvement, and maybe you can share a couple of examples?

Then my second question, it feels like a very exciting time for the business, huge number of opportunities. We see that in terms of how active you've been from an M&A perspective over the course of the past 12, 18 months.

I guess at the same time, it's also been 18 months, I think, now since you did anything with the Sanofi stake, a lot of capital tied up there, leverage has crept up a bit at the same time with all of this dealmaking, and there are still obviously a number of other potential deals waiting in the sidelines. I wonder, just in that context, can you give us a bit of a quick update on how you're thinking about the Sanofi stake, please?

Okay. I'll take the clusters, and I'll let Christophe think about what he can tell you on the Sanofi stake.

On the clusters, very clearly, we really doubled down on Europe particularly over the last 5 years, because clearly it's our biggest region, but it's also the region where we had the largest number of countries. Every Scandinavian country had its P&L.

Now we have a Nordics hub, which has 1 command, 1 P&L, and of course, a bit less high-ranked and high-paid leaders, and more people on the ground. We had UK and Ireland.

We did DACH, which is Germany, Austria, Switzerland. Some other companies had done that before, but we hadn't.

Spain, Portugal, we have also a few in Eastern Europe. If you accumulate the combination of the regroupment of these products, and you have some smaller countries that become satellites of the bigger ones that remain with people on the ground and really focusing on the specifics of their consumers, but they're benefiting from all the backbone, the power, the media, know-how, the quality of the teams of the big brothers.

It's very effective. If you add to that, which is where we see some more of it today, the benefit of having beyond 1 P&L, 1 common ERP, which is this SAP S/4HANA that we're moving to, which we've done in the UK and Ireland, which we've done in Spain and Portugal, and we will be doing in Germany.

This is also creating a lot of synergies, money saving, and more time to focus on the consumer. When I visited countries recently, I went to visit Spain, Portugal subsidiary, and for once, I decided not to do the visit in Madrid, but to go to Lisbon to visit stores.

What was great is that our brands were really stronger than ever, we are gaining share, but with less people in the country to some extent. We have very strong Portuguese team, but they are entirely focusing only on serving the consumer and the customer.

That's something that has proven very effective. We've done that also a bit in Latin America, with Colombia, the Andean region, and Ecuador.

We're doing this with Singapore and Malaysia. Of course, Australia, New Zealand.

We could say that we're a bit late on these things, but the fact that we're doing it, and just right after doing the IT simplification, gives us free some resources. SG&A in Spain are amongst the lowest scene, and therefore it frees a lot of money in the P&L to support our brands.

I would say it's been one of the recipes of capacity of Europe, where you had pretty high SG&A and lots of fragmentation, to become more lean, agile, and effective over the last couple of 4, 5 years. Okay.

On your second question, you are right to say that there are still plenty of opportunities when it comes to M&A, and believe me, we look at all of them as we usually do. Why?

Because we still have a very strong balance sheet, we have a very strong EBITDA, we have a very strong cash flow. Despite the acquisitions of Kering Beaute and Galderma, as I said before, the leverage of L'Oreal by end of 2026 will be already well below 1.

Sanofi, for us, it's, as you know pretty well, it's a financial asset, and just want to remind you that it's bringing €365 million of dividend, and net of taxes, it's nearly the same amount. Every time when we look at, first, do I need to transform this asset into cash?

Honestly speaking, not need right now. When I look at what it brings to the P&L, I think it's wise for the time being to keep it like this.

Very clear. Thank you both.

Thank you.

Bonjour, Nicolas, Christophe, Laurent, and Eva. First, I've got a housekeeping question for Christophe about the Galderma stake, the 20%.

How do you account for it, where does it appear, it doesn't seem to be in the share of associates. Then, I've got 2 questions really.

First, on marketing spend, that increased by about a bit more than half a billion incremental in H1, which is particularly impressive, reaching 32.6%. As you get more efficient, how should we think about this ratio going forward?

Could we go back towards the 31%, which was kind of the historical run rate? Then, a question on fragrances.

In a recent interview, your head of Luxe was expecting L'Oreal to outperform the fragrance category by a factor of 3. What are your expectations for the new fragrances launch in H2, such as Valentino Vendetta or Armani [unclear]?

How will it compare to Prada Paradoxe, for instance, considering that Armani or Valentino brands are much bigger than Prada?

Okay. Maybe I start with the technicalities of Galderma.

As when we took another 10% to reach 20%, we had to change the methodology of accounting, and apply the equity method. When an investor holds 20% or more of the voting power of a company, we have to apply IAS 28, which basically requires a purchase price allocation.

Therefore, we did our math, and at the acquisition, we have identified some assets where the fair value exceeds the carrying amount of the balance sheet, and this excess has to be amortized by L'Oreal. Actually, when you look at the way it is done, of course, we keep 20% of the net profit of Galderma, but on top of this expense, there is a PPA allocations or amortization, and this is why it is impacting the net amount at L'Oreal.

On top of that, in the first half, just for information, there is a one-off, which is the step-up of the cost, and this is happening only in first half. If you want to project a bit on the long term, what you have to understand is that on the net income of Galderma, there will be roughly $450 million that will be netted from this amount, and then, of course, we take the 20% of this amount.

Is it clear?

Yes, thank you, Christophe. Okay.

A&P and fragrances, somehow they could be related questions, because in the end, it's a question of what are the opportunities, what you can afford. I've said and I continue to say that the weight of A&P in the P&L of L'Oreal could very well go back down to around 31%, but it's true also that our objective is always the same: is to beat the market, increase our market share, and deliver regular improvements in profits of around 20 to 30 basis points.

Then, as we have a P&L where, with the level of gross margin we have, when top-line is very positive, it generates capabilities of investment, all the more when SG&A are under control. When you have the combination of the dynamism of the business that allows for it, many new brands and new products, and it could be new fragrance launches, then we can decide, and that's how we pilot the company with Christophe and the head of the divisions, to reinvest some of the money generated by the top-line growth and the SG&A control into our investment at some point in A&P, which is what we did at the end of Q2.

It doesn't mean that it's going to happen every time, but we are always very, very pragmatic, and that's why typically when we see something, a product, a launch, a brand that is starting very well, it's like a rocket. If you think you can take it higher with more fuel, we'll put more fuel in it.

Looking at the fragrances, right now, we are growing at twice the market speed, which is already pretty good. Thank you for informing me that my head of Luxe said 3 times, I know what to tell him next time he presents me some of his budgets.

Right now, we are twice the market speed, and we have indeed a few launches coming. It's very hard to predict in fragrance which fragrance is going to do better than the other one.

What I know is that all these launches have been crafted with the utmost care, the seeking complementarity in terms of olfactory notes between one and another. We have Vendetta that's coming with 2 launches: one masculine, one feminine.

We have a number of range extensions in our already very dynamic fragrances, whether on Prada, whether on Valentino. I would end by the claim of the new Armani fragrance is, "It's not about luck, it's about will."

I think it applies very much to our fragrance strategy, and so we'll do our best to put another of these launches, and maybe 2, in the top 10 the same way we did it with Prada and with YSL Libre. We'll see, but I think they are well-born, we'll see how they grow.

Thank you very much.

Thank you, and good morning, everyone. I have 2 questions.

Thank you. My first one is on the market growth that has accelerated.

I think in June, you are saying that the market was shy of 4, now it's 4.5. Can you say where is it that there has been deceleration, and where is it that you are expecting it to accelerate further in the second half of the year?

I know you already commented on China, where the market is going at 3, and I think you expect it to be stable at that level. North America, I think Ulta was talking about a bit of a slowdown through Q2, yeah, quite interested if you could particularly as well comment on the North American market, since there's been no question on the US so far.

Then my second question for Christophe, a lot of financial questions, hopefully I'll put everything in one. Thank you for the Galderma explanation.

Can you likewise explain the impact of Kering Beaute from a dilution perspective, because you said it would be dilutive year 1 and year 2? If you could explain the impact on margin and on EPS.

You said that Creed was growing double digit. Are we talking teens or 20s or more?

I don't know if you could spell out the number. Then tax and net financial came a bit below expectation.

Could you give us a guide for the year, please? Thank you.

Bonjour, Celine. I will take the market description.

We indeed, when we commented the first quarter, we said the market was shy of 4. As every time we speak to you, we have only a partial vision of the quarter, because we don't have all the data from all the countries.

It's constantly reassessed, and actually the first quarter was slightly above 4 rather than shy of 4. We see the first half around 4.5.

All regions were more or less at the same rhythm than at the end of last year. North America accelerated, it had accelerated in the first quarter and continued to do so in the second.

That kind of answers your question on North America, the US market is mid-single digits, and there are indeed shifts in categories: makeup is a bit slower, hair care is more dynamic, hygiene is also a bit better. There are fluctuations in this market, which can explain maybe why Ulta sees things with a slightly different perspective.

Overall, the market was at least until the end of Q2 pretty dynamic, around 5%. As I said, SAPMENA has continued to be a strong double digit, is Europe.

It's most countries stable. If you take China, it's the same as Q1, Q2, and not far from Q4 last year, but the beginning of last year was negative in China, so that creates a bit of acceleration.

As far as the second half is concerned, I don't see an acceleration of the market. I see something that is more in the line of what we saw in Q2.

I don't see any major change, but what I see is that people have this appetite for beauty and respond to stimulation, to new ideas, to new products, and which we'll try to contribute to. Second half I see it more as a continuation of Q2 than another acceleration.

Just on China, you said 3, the market is shy of 2, it's not 3%, but it's true that for some parts the market, like luxury, is close to 7, you have differences amongst channels. Regarding Creed, I think it's slightly above plus 10.

It's close to 10 or slightly above plus 10. Right now, we haven't done anything, by the way, it's a big brand in North America, and I think it will be a super profitable brand, we'll be able to pass behind it and hopefully continue to grow it.

All in all, and the good thing is that we are going back to the US, market's around 5, we are in sell-out around 7. We are gaining share in the 4 divisions, which was not always the case, with a particularly strong performance of CPD, say driven by hair care, which is really flying with Elseve or Elvive, as they call it, really, really strong.

I'll hand over to Christophe on the rest.

Yes. A few information: first on Kering Beaute.

Kering, as has been consolidated in the accounts since second quarter, we are still in the process of financing the step-up of the stocks, all the cost of integration, etc. If I project for the full year, first on the reps, it will be slightly relative of around 10 basis points at group level, and then on top of that, we have, of course, the dilution linked to the financial expenses.

This dilution will probably last till we be investing on the brand. When it comes to the EPS, it will be slightly negative in 2026, and probably back to very, very small growth in '27.

That's a bit the best estimate that I can provide to you.

Very obviously, when we take back brands, that's what we did with Prada and Valentino, you have to relaunch, you have to reignite. These brands now are worth €700 million, they were a couple of years where they were in terms of pure operating profits where they were very dilutive to L'Oreal Luxe, and other brands compensated until they reached a critical mass when suddenly it starts paying off, and then they can be extremely accretive.

It's how we work our portfolio. You have to have brands that contribute whilst to fund the acceleration and takeoff of the new ones.

To complement on what Nicolas is saying is, priority will be the growth of the brand, because, as you can understand, the impact on the rest of the group is very limited. I think you had 2 small questions: one was related to the financial interest.

Obviously, it's increasing. We have roughly €80 million more compared to last year, and of course, it's due to the payment of both Kering on one side and Galderma on the other side.

What I can tell you is that projection for the full year is around €400 million of financial expenses in 2026. When it comes to taxes, here there is a lot of plus and minus, slightly above last year, but mainly due to mix of geographies that is slightly impacting the tax rate.

Of course, in absolute amount, we have the exceptional taxes of the French government.

From dear French government.

Yes, absolutely.

Excellent. Thank you very much.

Thank you. Good morning.

2 questions, please. First on the outlook, you were previously talking about being optimistic, you're now talking about being confident.

Is there any subtle change in meaning that follows from that change in the wording? The second one, you were talking about the model and your desire to grow margins by 20 or 30 basis points a year.

Could you say a little bit about the additional volume leverage that you're getting? When you get an extra 1% or so of volume, what sort of margin do you expect to earn on that volume?

That's a tough one. I'll let Christophe think about the answer.

No, frankly, on the outlook, on the semantics, the only thing I could say is that when you start the year, you have 12 months ahead of you, you are optimistic. When you have 6 months in the bag, you start being confident.

When you know what's ahead and you see what your teams are telling you and their own level of confidence, you can move from one to the other. Hopefully, at the end of the year, I'll tell you that I'm happy.

Looking at the second question, but first, just as a reminder, you know that the weight of the cost of goods in our P&L is quite small, because with a gross margin at nearly 75%, I let you guess what is the impact of that cost of goods. Therefore, increasing the volume by 1%, of course, it has always a marginal benefit on the added value of the factory, but is not meaningful.

It's always welcome, but is not critical in the margin of the group. There are many, many other factors that may impact the margin before the increase of volume.

Christophe, are we saying that an extra 1% volume really we should just assume comes through at the same sort of average margin as the group?

Yes,

yes. Brilliant.

Thank you.

Morning, everybody. Thank you.

Just are you able to say what the volume component of growth was Q1, Q2? Would you be able to say what the sun care contribution to growth was, again, perhaps Q1, Q2?

Just with LLM adoption, I know you're going to go into AI later in the year, but is that at the moment or do you think that will stop indie beauty companies taking share, please?

I'm not sure I understood your last question, Tom. Can you try to rephrase?

As people adopt LLMs, and in theory, there's these curated lists of a narrower number of brands, do you see those large brands at the moment actually taking share? Is there any statistics you can point to improved conversion rates when brands appear in those curated lists?

Do you see it at the moment, or expect in the future that that curtails the growth of smaller indie beauty brands relative to larger brands, please?

Okay. I'll take that one first.

Clearly, first of all, the younger generation are shifting massively to using LLMs for their product queries, and beauty is probably one of the biggest categories where they have conversations and they're asking, and it's longer interactions, actually, it takes more time. Search is not over, and by the way, you also that Google added an AI layer to their search bar, the 2 are actively emerging.

What we see today, and we have clearly several task force, a lot in the US, also in Europe, on how to constantly analyze and understand where the LLMs are driving their responses from. What we see is clearly that there is aside from the size of the brand, which of course famous brands may pop up more, but it's really more about the quality of the data and particularly the science behind the products, the endorsement of products by professionals, and we see typically that if I take skin care, LLMs are really benefiting our LDB brands, because they have both size, the awareness, but also they have a lot of publications, endorsements from doctors.

It's true also for professional brands. It's a bit more fragmenting on mass.

Overall, as on everything, we have multiple teams working on that, and we're optimizing every week, and the simplest answer to your question is, yes, I think it will benefit us, the brands of the group, because we have this combination of science, data, professional endorsement, and brand scale that will allow us to prevail. That's also why we've signed various partnerships with OpenAI, which we announced at VivaTech.

As I said, I took my whole ExCom to the Silicon Valley, and we had very exciting discussions with the Google teams and Nvidia to clearly work on that and on this optimization. Even though it's still a moving target, it will be beneficial to us in the years to come.

That's something that I feel I'm pretty convinced about. All the experiments we did on our own sites tends to prove that.

On volumes, I don't think we have it per quarter, and I think it's bit irrelevant, because you have this big swings linked to the stocking of our ERP platforms. Our volumes are roughly around 20% of our growth, and the rest is a bit of value and some mix too, volumes are around 20%.

I don't remember what was the third one.

Suncare. Suncare,

suncare, I don't have the data.

Suncare, what I can say is that it's a category that is increasing double-digit growth, slightly above 10%. It's still a few part of the total sales of L'Oreal, it's less than 3.5% sales.

It's doing quite well and... The the thing

the thing you can say about suncare, you really can assess the suncare season at the end of August, September, because you always the way it works is that you always, and we'll be more careful, I would say, this year than we had 2 years ago when it kind of beat us, but you you place your first orders, and then basically depending on the weather and, of course, the success of your brand, you got reorders that come in in, let's say, August. We're still in the first part of the season.

The only thing I can say is that, well, the weather's been pretty sunny, people have needed protection. The other thing I can say is that CeraVe sun care, which is an entirely new brand, is starting very, very well.

It is it bites a little bit on on Vichy, which was not great, was not a big brand. Overall, you have the combination of La Roche-Posay and CeraVe, which is doing very good.

Also, we're celebrating the 90 years anniversary, 90th years anniversary of Ambre Solaire, invented by our founder in 1936, which is more French and Spanish brand, but we have a lot of innovations there. Too soon to tell.

The only thing I can say that the placement was was good without being forced, and that the weather's been good so far. For the rest, we'll see next time we speak, we'll have more information on sun care.

Great. Thank you very much.

Good morning, everyone. Just one sort of housekeeping question, and just back to the PPA on Galderma.

I think, Christophe, that you mentioned the number of $450 million. What is that number, or to rephrase on an annual basis, what will be the PPA that will go through the P&L for Galderma, offsetting the sort of underlying share of the profits?

If you could give us that number, that would be great, if indeed it is a different number from the 450. Thank you.

Yes, of course. In fact, when I was speaking to those $450 million, I specified US dollars, this is the yearly amount that will be deducted from the net result of Galderma, okay?

When you deduct those $450 million, then, of course, I will keep only the 20%. That's why there is an impact this year, because it is, on top of that, impacted by the one-time cost linked to the step-up.

Starting from next year, and this amount, by the way, will be quite fixed, because it's the amortization of different kind of assets. I think the minimum in terms of years of amortization is 7 years, you can expect this amount of $450 million to be deducted from the net result of Galderma every year before applying the 20% share.

Very clear. Thank you, Christophe.

Clear? Thank you.

morning. Thanks for squeezing me in.

I've got just got 1 question. In the presentation, you referred to the 29% share of kind of influence online.

Maybe you could talk a little bit more about that metric. Where was it historically?

Is it growing? Is it relatively stable?

How you can be confident that that's the kind of that's the right number? Then also how you feel that that share of influence sort of translates into your market share, given you know the share of sort of 30% is roughly double your kind of global market share of of beauty?

Just a bit more context and color on that would be very useful. Thanks.

That's going to be a tough one for me to answer, because first, I don't master all the the the ways this is computed. We work with a number of of companies that are specialized in to in in in measuring that our share of influence, which is always a combination of of of the measurement of number of views and and and engagement, i.e., people who like or who share or who or who respond.

What it what it is is that it is in in higher than our share of voice in media, because we have really our share of voice in media has always been higher than our than our market share, it's always, 20s, low 20s. In influence, we've we've really doubled down, because that's where that's where you win the game on online against indies, on platforms like TikTok, where you have to increase the quantity of content, and of course the quality of content, that you share with that you push towards towards the market.

That's why we created this Lorealistars force, where you offer influencers who need revenues to have access to the whole portfolio of L'Oreal brands, not not just one, and therefore they know that they can at least at the same time promote, CeraVe, L'Oreal Paris, or YSL, which is very attractive to them. Then there are, companies that are measuring these these influencers, this like, and these views.

It is a technology or I say a technique that is getting more and more accurate, but as it's something that you have, billions of contents out there, I'm careful about the accuracy of the number. What I can tell you is that it has been increasing for L'Oreal, and you have to be in that game in order to to to to win share in this market.

That's how we do it, but at the same time, and that's that's very important, is that we never give up, and that's also why sometimes we have a boost in A&P, on on what I would call more the equity-building advertising, where you have, the more traditional or more branded piece of of content, which are not necessarily as instantaneous in terms of of purchase generation, influencers tend to be often more reactive, as do promotions, but they are the ones that build the brand equity over time. That, creates the the capacity of any brand to prevail over decades, which is what we do, we build brands.

Having L'Oreal Paris being the number one contributor to the group's growth in the first half is a sign that it's not just about the the the new fun stuff that appears on the market, it's also about brands that have equity. I I apologize for not being able to give you the accurate way to calculate, and I whilst acknowledging it's not perfect, I can confirm it is improving, and it it is important for us to to be able to to compete in this landscape.

Thank you. Very very interesting context.

Great. I think that concludes the conference call.

Thank you very much, all of you, for attending, and we wish you a very good summer.

With good sun care. Have a great one.

Thank you so much.

Thank you.