- L'Oréal's like-for-like sales rebounded by 33.5% in Q2 2021, after a trough prior-year quarter, and was 8.4% higher than in 2019.
- L'Oréal grew significantly ahead of market, though growth rates differed by region and category, with some showing weakness.
- The strong year-on-year growth was largely a rebound from the COVID-impacted 2020; compared to 2019, total H1 sales were 6.6% higher.
- L'Oréal shares are trading at 50.8x 2019 EPS, and H1 2021 EPS was just 5.7% ahead of H1 2019. We believe the P/E is too high.
- With shares at €393.85, we expect them to be flat in the next few years, with the dividend giving a 1% annualized return. Avoid.
For further details see:
L'Oréal: Strong Q2 Rebound From Prior Year Trough, But 51x P/E