By Kayode Sanni-Arewa
Francoise Bettencourt Meyers, World’s Richest Woman, Loses $13 Billion in 2024. Françoise Bettencourt Meyers, the world’s wealthiest woman and heiress to the L’Oréal fortune, has faced a significant financial setback in 2024, losing $13.1 billion of her net worth over the first seven months of the year. This decline, which brings her fortune down to $86 billion from nearly $100 billion at the start of the year, reflects broader challenges within the luxury beauty and fashion sectors.
The Bloomberg Billionaire Index reports that Bettencourt Meyers’ wealth reduction mirrors the difficulties faced by other luxury industry titans, such as Bernard Arnault, the head of Louis Vuitton Moët Hennessy (LVMH). Read Also : EFCC Detains NAHCON Chairman, Secretary Over N90 Billion Hajj Subsidy Scam The downturn in Bettencourt Meyers’ fortune is closely tied to her substantial stake in L’Oréal, the global cosmetics giant, which has been adversely impacted by a slowdown in the Chinese market. As a result, L’Oréal shares have fallen by 14.25% year-to-date, stoking investor concerns over the company’s growth prospects in key markets.
L’Oréal’s Response to Market Challenges In response to the challenges facing the luxury market, L’Oréal has been actively working to diversify its portfolio. One significant move is the planned acquisition of a 10% stake in the Swiss skincare company Galderma, valued at $1.85 billion. This strategic investment, which 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.—is part of L’Oréal’s broader effort to strengthen its position in the global skincare market and reduce its reliance on more volatile luxury segments.
Additionally, L’Oréal has continued to invest in its workforce through the expansion of its Employee Share Ownership Plan, launched in 2018. This plan, now available in 63 countries, allows employees to purchase L’Oréal shares at a 20% discount. Over 37,000 employees have participated in the initiative, which aims to align their interests with the company’s long-term growth and values. Nicolas Hieronimus, Chief Executive Officer of L’Oréal Groupe, emphasized that this plan reflects the company’s commitment to fostering a sense of shared ownership and responsibility among its employees
About Francoise Bettencourt Meyers Françoise Bettencourt Meyers controls approximately one-third of L’Oréal, the world’s largest cosmetics company. She became chairwoman of the holding company that manages the family’s stake 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, according to analyses of company filings and market data.