L’OREAL REPORTS RECORD PROFITS
PARIS — L’Oreal, the world’s largest cosmetics company, had much more than a good year.
The company’s net profits grew 24.2 percent in 2000, to $940 million, the group said Thursday. (All dollar figures are converted at current exchange rates.)
“2000 was a historical year,” said Lindsay Owen-Jones, chairman and chief executive officer of L’Oreal, in a statement. “L’Oreal achieved an absolute record in terms of profit growth — the highest for almost 20 years. Similarly, group sales showed their highest growth alone since the consolidation of our American subsidiaries in 1994.”
Owen-Jones attributed the growth to several factors, including the increasing international development of strategic brands, especially in Japan, North America and in several other markets, including Korea, Poland, Russia, Turkey and Brazil.
In North America, Owen-Jones said, overall sales grew by 31.4 percent, and in the U.S., group sales exceeded $3 billion for the first time. In Japan, sales increased by 46 percent, which he attributed to the success of Maybelline in that market.
As reported, the beauty giant published sales figures for 2000 up 10.5 percent, to $11.7 billion, after adjusting for currency fluctuations. Operating profits were up 21.7 percent, to $1.4 billion, or up 20.4 percent, to $1.35 billion, after adjusting for currency fluctuations. By division, the cosmetics category showed a profit increase of 19.3 percent, to $1.3 billion. Dermatology’s profits were $52.4 million, up 45.2 percent. The group’s tax charge increased by 15.4 percent.
