PARIS — L’Oréal registered a 17.6 percent rise in 2012 net income and said it is “well-prepared” to outpace the beauty market’s growth this year.
The firm’s net profits reached 2.87 billion euros, or $3.69 billion, in the 12 months ended Dec. 31, it said Monday after the Paris Bourse closed. L’Oréal’s operating income was up 12.3 percent to 3.7 billion euros, or $4.75 billion.
Company sales in the period increased 10.4 percent to 22.46 billion euros, or $22.88 billion. On a like-for-like basis, revenues advanced 5.5 percent.
Dollar figures are calculated at average exchange for the period to which they refer.
The full-year operating profits and organic sales were in line with UBS’ estimate, according to analyst Eva Quiroga in a research note published Monday.
Jean-Paul Agon, L’Oréal chairman and chief executive officer, said that 2012 “was a good year for L’Oréal on many fronts. The group achieved strong sales growth and once again demonstrated its ability to outperform the beauty market and to gain market share, even in the more difficult markets of Western Europe and the United States.”
Agon lauded innovation stemming from each of the company’s divisions and major business segments, and he highlighted that “2012 also marked a milestone in the acceleration of the group’s internationalization, as the ‘New Markets’ became the number-one geographic zone.
“Lastly, the profits and cash flow have grown very strongly, reaching record levels and confirming the power of our business model,” he continued.
L’Oréal’s fourth-quarter 2012 sales grew 9 percent to 5.73 billion euros, or $7.43 billion. On a like-for-like basis, the French beauty giant’s revenues gained 5.3 percent in the three months.
The quarterly top-line growth was “slightly ahead of consensus (5.1 percent) and our expectations (4.7 percent),” according to initial perspectives published by Andrew Wood, an analyst at Sanford C. Bernstein & Co. “In [fourth-quarter 2012], L’Oréal saw most regions and businesses deliver above expectations.…only dermatology and luxury were below, the latter being a bigger worry given that it has been the major driver of L’Oréal growth in recent quarters.”
In the period by geographic zone, sales rose 3.2 percent in Western Europe, 14.8 percent in North America and 11.3 percent in new markets. In division terms, revenues gained 5.3 percent for professional products, 8.7 percent for consumer products, 12.3 percent for L’Oréal Luxe and 8.6 percent for active cosmetics. The Body Shop’s sales were up 9.8 percent, while dermatology revenues grew 4.8 percent.
L’Oréal said it will propose at its next annual general meeting on April 26 a new share-buyback plan amounting to 500 million euros, or $669.3 million at current exchange, in the first half of this year.
“We are facing the future with optimism and confidence,” stated Agon. “The group is thus well-prepared to outperform the market in 2013 and to achieve another year of sales and profit growth.”
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
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Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast