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L’Oreal Reports 8.4 Percent Sales Gain

<CS:BOLD>PARIS -- French beauty giant L'Oreal posted consolidated sales for 2001 of $12.09 billion, up 8.4 percent over the previous year, and "in line with the group's expectations."<BR><BR>Dollar figures have been converted from the euro at current...

PARIS — French beauty giant L’Oreal posted consolidated sales for 2001 of $12.09 billion, up 8.4 percent over the previous year, and “in line with the group’s expectations.”

Dollar figures have been converted from the euro at current exchange rates.

At constant group structure and exchange rates, group sales would have grown by 7.1 percent, L’Oreal said in a statement.

Exchange-rate fluctuations, which had had a positive 0.5 percent effect on the group’s figures up to the end of September, had a negative effect of 0.3 percent on the yearend results. The growth rate, excluding exchange-rate fluctuations, was 8.7 percent.

The positive net impact of disposals and acquisitions in 2000 and 2001 amounted to 1.6 percent for the year. Up to the end of September 2001, it was 2.4 percent.

The group made two acquisitions during the course of 2001 — skin care company Biomedic and the Brazilian mass-market makeup brand Colorama.

By sector, sales at L’Oreal’s cosmetics division grew 8.7 percent over 2000 to reach $11.82 billion. Sales for the dermatology division — in which it has a 50 percent stake — grew 11.3 percent to $257.8 million. At constant conditions, growth would have been 9.1 percent and 10.9 percent, respectively.

By geographical zone, group sales in Western Europe grew by 5.6 percent to $5.81 billion, North American sales were up 14 percent to $3.75 billion and sales in the rest of the world were up 8.8 percent to $2.25 billion. At constant conditions, these growth rates would have been 5.8 percent, 11 percent and 14.9 percent, respectively.

For the fourth-quarter sales were “satisfactory,” up by 6.2 percent on a like-for-like basis. By region, Western Europe was up by 5.8 percent and North America was up by 2.2 percent, while the rest of the world was up by 13.8 percent.