PARIS — L’Oréal announced Tuesday its first-half net profits rose 10.8 percent and confirmed it expects to outperform the market this year.
This story first appeared in the August 29, 2012 issue of WWD. Subscribe Today.
The French beauty giant’s net profits for the six months ended June 30 were 1.63 billion euros, or $2.11 billion. Company operating profits increased 11.4 percent to 1.9 billion euros, or $2.46 billion.
As reported, L’Oréal posted first-half sales of 11.21 billion euros, or $14.55 billion, a 10.5 percent gain. In comparable terms, they climbed 6 percent.
Dollar figures were converted at average exchange for the period.
“With strong growth in sales and results, the first half of 2012 confirms the group’s good dynamics,” said Jean-Paul Agon, L’Oréal chairman and chief executive officer. “L’Oréal is continuing to strengthen its positions, and thus reinforcing its leadership of the worldwide cosmetics market.”
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He continued, “The growth in results confirms the relevance of our business model: Although it is important to emphasize that half-year figures are not particularly representative, this performance reflects the group’s ability to build solid and profitable growth.
“Bolstered by these results and despite the uncertainties of the economic environment, we confirm for 2012 our ambition to outperform the market and achieve another year of growth in sales, results and profitability,” stated Agon.
L’Oréal also said its board has decided to buy back company shares for a maximum amount of 500 million euros, or $628.3 million at current exchange, by Dec. 31 after which date they will be canceled.