L’Oréal reports “encouraging first-half growth” – 12/07/04

FRANCE. The L’Oréal Group has reported first half sales of €7.4 billion, a +6.4% increase on a like-for-like basis. Growth in the second quarter was +7.5%.

Currency fluctuations amounted to -4.5% at the end of March, and -1.8% in the second quarter. Over the half-year up to the end of June, the total impact of currency fluctuations was -3.3%.

The net impact of changes in consolidation (in China, the consolidation of Mininurse and Yue Sai; and in Japan the 100% consolidation of Shu Uemura) was +0.5% at the end of June.

L’Oréal Chairman and Chief Executive Officer Lindsay Owen-Jones commented: “After gathering speed in the second quarter, L’Oréal achieved encouraging first-half sales growth, in line with our expectations. The good organic growth achieved by our brands, our continuing rapid expansion in new markets and the numerous initiatives planned for the second half make us optimistic about the full-year figures. We confirm our sales and earnings targets for 2004.”

Geographically, on a like-for-like basis, in the first half sales grew +1.7% in Western Europe (€3,902 million); +6.2% in North America (€1,823 million); +22.1% in Asia (€626 million), +17.9% in Latin America (€344 million); and +33.4% in Eastern Europe (€256 million).

By operational division, Luxury Products sales rose +6.9% to reach €1,640 million. Key drivers were the new Life Pearl anti-ageing treatment from Helena Rubinstein, the Oleosource range from Biotherm, and Color ID make-up and Hypnôse mascara from Lancôme.

This division’s sales were also boosted by the “upturn in air travel”, noted the group.

MORE STORIES ON THE L’ORÉAL GROUP

L’Oréal Paris unveils new Montreal stand-alone store – 06/07/04

The L’Oréal group unveils Armani Mania – 27/05/04

Viktor Rolf to make debut for L’Oréal as 2004 launch programme shows no sign of let-up – 10/02/04

L’Oréal and Néstle relationship is revamped following landmark agreement – 04/02/04

Food & Beverage The Magazine eZine