Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Estée Lauder Cos. Inc., consolidated income statement

US$ in millions

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Net sales	15,910)	17,737)	16,215)	14,294)	14,863)	13,683)
Cost of sales	(4,564)	(4,305)	(3,834)	(3,552)	(3,387)	(2,844)
Gross profit	11,346)	13,432)	12,381)	10,742)	11,476)	10,839)
Selling, general and administrative	(9,575)	(9,888)	(9,371)	(8,637)	(8,857)	(8,556)
Restructuring and other charges	(55)	(133)	(204)	(73)	(216)	(231)
Goodwill impairment	—)	—)	(54)	(812)	(68)	—)
Impairments of other intangible and long-lived assets	(207)	(241)	(134)	(614)	(22)	—)
Operating expenses	(9,837)	(10,262)	(9,763)	(10,136)	(9,163)	(8,787)
Operating income	1,509)	3,170)	2,618)	606)	2,313)	2,052)
Interest expense	(255)	(167)	(173)	(161)	(133)	(128)
Interest income and investment income, net	131)	30)	51)	48)	58)	56)
Other components of net periodic benefit cost	12)	2)	(12)	(4)	(2)	—)
Other income, net	—)	1)	847)	557)	71)	—)
Earnings before income taxes	1,397)	3,036)	3,331)	1,046)	2,307)	1,980)
Provision for income taxes	(387)	(628)	(456)	(350)	(513)	(863)
Net earnings	1,010)	2,408)	2,875)	696)	1,794)	1,117)
Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest	(4)	(18)	(5)	(12)	(9)	(9)
Net earnings attributable to The Estée Lauder Companies Inc.	1,006)	2,390)	2,870)	684)	1,785)	1,108)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Revenue exhibited a general upward trajectory between 2018 and 2022, peaking at 17.74 billion USD before experiencing a contraction to 15.91 billion USD in 2023. Net earnings showed significant volatility over the same period, reaching a peak of 2.87 billion USD in 2021 and subsequently declining to 1.01 billion USD by 2023.

Revenue and Gross Margin Analysis: Net sales grew from 13.68 billion USD in 2018 to 17.74 billion USD in 2022, representing a period of expansion that was interrupted briefly in 2020. Gross profit margins remained consistently strong, although they tracked closely with sales volume, peaking at 13.43 billion USD in 2022. The 2023 fiscal year marked a reversal in this trend, with gross profit falling to 11.35 billion USD, mirroring the decline in net sales.
Operating Expense Trends and Impairments: Selling, general, and administrative expenses rose from 8.56 billion USD in 2018 to a peak of 9.89 billion USD in 2022, indicating an increase in operational overhead to support growth. A significant spike in operating expenses occurred in 2020, driven largely by non-cash charges, including 812 million USD in goodwill impairment and 614 million USD in impairments of other intangible and long-lived assets. While these impairment charges subsided in later years, they contributed to a sharp temporary reduction in operating efficiency during the 2020 period.
Operating and Net Income Volatility: Operating income fluctuated considerably, falling to a low of 606 million USD in 2020 before recovering strongly to 3.17 billion USD in 2022. However, this recovery was short-lived, as operating income dropped to 1.51 billion USD in 2023. Net earnings attributable to the parent company peaked in 2021 at 2.87 billion USD, aided by a relatively lower provision for income taxes (456 million USD) compared to previous years. By 2023, net earnings contracted to 1.01 billion USD, reflecting the combined impact of lower sales and sustained operating costs.
Financial Income and Interest Obligations: Interest expenses remained relatively stable between 2018 and 2022, ranging from 128 million USD to 173 million USD, but saw a notable increase to 255 million USD in 2023. This increase in borrowing costs coincided with a rise in net interest and investment income, which peaked at 131 million USD in 2023, partially offsetting the higher interest expense.

AI Ask an analyst for more

Download chart

Estée Lauder Cos. Inc. (NYSE:EL)

Income Statement