L'Oreal's first-half 2012 results reflect 'ability to build strong profitable growth'
PARIS — L'Oréal Paris posted an increase in first-half 2012 sales and expects to achieve another year of growth in sales, results and profitability.
“Our performance during the first half of the year, as you've seen, has grown strongly. Operating income is up 11.4%, and net income is up 10.8%. And this performance confirms the robustness and relevance of L'Oréal's economic model. It is important to stress that half year, our figures are not particularly representative. This performance, however, reflects the group's ability to build strong profitable growth,” said Jean-Paul Agon, chairman and CEO of L’Oreal, during a conference call to discuss the financial results.
When speaking about its consumer products division, Agon said that L'Oréal Paris continues to strengthen its position in hair care. Maybelline has strengthened its global leadership with its new SuperStay 14HR Lipstick and the new Illegal Length mascara.
He also touched upon Garnier and Essie, saying that, “Garnier is accelerating fast with the launch of new products that are highly original and highly consistent with the brand. The new BB cream product, that is a global sensation — not forgetting the Dark Spot Corrector facial care product, which is No. 1 on the U.S. market and which is currently being launched in Europe. And also, the latest projects in the hair color market, Nutrisse Color mousse and Color Sensation. And lastly, the runt of the litter, Essie. Essie is riding on the back of a major global trend in terms of the nail polish market, and sales have increased by a factor of four since the acquisition in 2010.”
He added, “Thanks to all of those efforts, the division has grown on every continent. It has also been able to strengthen its positions in its most competitive historical markets, such as the U.S.”
Based on reported figures, the group's total sales, at June 30, 2012, amounted to 11.21 billion euros, an increase of 10.5%. Like-for-like (i.e. based on a comparable structure and identical exchange rates) the sales growth of the L'Oréal group was 6%.
In North America, sales rose 17.8% based on reported figures and 7.3% on a like-for-like basis.
The beauty company’s consumer products division experienced an 8.1% boost in sales on a reported basis and a 4.7% increase on a like-for-like basis.