By  on July 12, 2010

PARIS — L’Oréal’s second-quarter sales rose 12.4 percent to 4.95 billion euros, or $6.3 billion at average exchange rates, spurred on, in part, by business in emerging markets and positive exchange rate fluctuations.

On a like-for-like basis, revenues in the three months ended June 30 gained 5.2 percent.

For the first half, L’Oréal posted revenue gains of 10.2 percent to 9.67 billion euros, or $12.82 billion. They increased 6.3 percent on a comparable basis.

“The strong first-half sales growth reflects a return to a good like-for-like sales trend and a very positive exchange rate impact, which might increase in the course of this year,” stated Jean-Paul Agon, L’Oréal’s chief executive officer. “All divisions are recording dynamic trends, thanks to major innovations, which are proving very successful: the rollout of the new Inoa hair colorant from L’Oréal Professionnel is continuing in salons all over the world, Yves Saint Laurent is experiencing a complete renaissance, with one of the highest growth rates among major luxury brands, and Maybelline, the world leader in makeup, is growing strongly across all continents.”

L’Oréal’s professional products division’s sales grew 11.9 percent to 1.36 billion euros, or $1.81 billion, in the half. Its consumer products revenues gained 9.5 percent to 4.82 billion euros, or $6.4 billion, and its luxury products division posted sales of 2.1 billion euros, or $2.79 billion, up 12 percent. Meanwhile, active cosmetics generated revenues of 773.1 million euros, or $1.03 billion, a 7.9 percent increase.

“L’Oréal has once again strengthened its geographic positions, thanks to the group’s good performance in North America, and major breakthroughs in the new markets, particularly in China, Brazil, Russia, India and Indonesia,” continued Agon.

By geographic zone, the company’s business in Western Europe registered sales of 3.71 billion euros, or $4.92 billion, up 2.6 percent. In North America, it came to 2.12 billion euros, or $2.81 billion, an 8.8 percent uptick, and the new markets rang up 3.23 billion euros, or $4.28 billion, a 22 percent gain.

“These results bear out our major strategic choices and mean that we can tackle the second half with confidence,” stated Agon.

To continue reading this article...

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus