This sum represents a little less than 10% of the net profit recorded in 2018 (3.89 billion euros) by the French cosmetics giant.
A big check to settle the accounts. Friday, September 20, the L’Oréal group announced that it would pay 320 million euros to the French tax authorities for “Settle a dispute” related to the payment of corporate tax between 2014 and 2018. This sum represents a little less than 10% of the net profit recorded in 2018 (3.89 billion euros) by the French cosmetics giant, which provides in a communicated that the transaction will have no “Significant recurring impact on the future”.
The charges will be recorded in the exceptional items of the 2019 financial year, adds the company, which specifies that the agreement is not accompanied by penalties. In detail, the charge amounted to 47 million euros for Lancôme Parfums et Beauté, 115 million euros for Active Cosmetics International and 158 million euros for Prestige and Collections International. A total which therefore amounts to 65 million euros per year during the period concerned.
The group was recently qualified as the most “powerful” French brand by a study by Brand Finance, based in London. In the top 10 of this ranking, we also find Lancôme (5th) and Elsève (9th), two brands in the L’Oréal portfolio.