Françoise Bettencourt Meyers, the world’s richest woman and heiress to the L’Oréal fortune, has experienced a significant financial setback of $13.1 billion in 2024.
Over the first seven months of the year, her net worth has decreased by $13.1 billion, reflecting the broader challenges facing the luxury beauty and fashion sectors.
According to the Bloomberg Billionaire Index, Bettencourt Meyers’ wealth now stands at $86 billion, down from nearly $100 billion at the start of the year.
This decline mirrors the difficulties encountered by other luxury sector billionaires, including Bernard Arnault, who leads the Louis Vuitton Moët Hennessy empire.
The pressures facing Bettencourt Meyers are largely tied to her substantial stake in L’Oréal, the global cosmetics giant, which has been adversely affected by a slowdown in the Chinese market. L’Oréal shares have fallen by 14.25% year-to-date, reflecting investor concerns over the company’s growth prospects in key markets.
Loreal’s response to dwindling share value
In response to these market challenges, L’Oréal has been actively seeking to diversify its portfolio. One notable move is its planned acquisition of a 10% stake in Swiss skincare company Galderma, a deal valued at $1.85 billion.
This acquisition, as reported by the Wall Street Journal, involves purchasing shares from Sunshine SwissCo AG, a consortium that includes Swedish private equity firm EQT, the Abu Dhabi Investment Authority, and Auba Investment Pte. Ltd. This strategic investment is part of L’Oréal’s broader effort to strengthen its position in the global skincare market and reduce its dependence on more volatile luxury segments.
Moreover, L’Oréal has continued to invest in its workforce through the expansion of its Employee Share Ownership Plan. Launched in 2018, the plan has been rolled out in 63 countries where feasible, offering employees the opportunity to purchase L’Oréal shares at a 20% discount.
The initiative, which has seen participation from over 37,000 employees, is designed to align the interests of employees with the long-term growth and values of the company. According to Nicolas Hieronimus, Chief Executive Officer of L’Oréal Groupe, the plan reflects the company’s commitment to fostering a sense of shared ownership and responsibility among its employees.
What to know about Francoise Betterncourt
Bettencourt Meyers controls approximately one-third of L’Oréal, the world’s largest cosmetics company. She serves as chairwoman of the holding company that manages the family’s stake, a position she assumed following the death of her mother, Liliane Bettencourt, in 2017. Under her leadership, L’Oréal has continued to thrive, generating €41.2 billion ($44.5 billion) in revenue in 2023. The Bettencourt family has received more than €10 billion ($11.2 billion) in dividends from L’Oréal over the years, based on analyses of company filings and market data.
Beyond her business acumen, Bettencourt Meyers is also deeply involved in philanthropy. She oversees her family’s charitable foundation, which is dedicated to advancing French sciences and arts. Notably, following the 2019 Notre Dame Cathedral fire, the Bettencourt Meyers family, along with L’Oréal, donated $226 million towards the restoration efforts. This philanthropic commitment underscores Bettencourt Meyers’ broader influence, not only in the business world but also in cultural and social spheres.
As L’Oréal navigates the complexities of the current market environment, Bettencourt Meyers remains a central figure in the luxury industry, with her wealth and influence continuing to shape the future of the sector.(Nairametrics)
