Strong Growth for L'Oréal in First Half of 2012

L’Oréal has reported strong sales growth for the first half of 2012 sales, coming in at €11.2 billion, which represents an increase of 10.5% based on reported figures (+6.7% excluding current fluctuations) and a like-for-like rise of 6%.

Commenting on the figures, Jean-Paul Agon, chairman and CEO of L'Oréal, said, "L'Oréal recorded a good first half. In a market which reflects contrasting trends but is favorable overall, all branches, divisions and geographic zones achieved growth.

“L'Oréal Luxe is confirming its very good performance, thanks to the major successes of Lancôme, Yves Saint Laurent, Kiehl's and the Designer Fragrances. Active Cosmetics is accelerating significantly, driven by its international dynamics. The consumer products division has achieved solid growth. The rejuvenation of The Body Shop is generating more substantial growth.

“The rise of the new markets, now our No. 1 geographic zone, is continuing, driven by the dynamism of Asia and Africa, Middle East. North America is growing fast, with large market share gains and the strategic acquisition of Clarisonic. Eastern Europe is continuing its recovery, and the group is improving its positions in the major countries of Western Europe.

“The first half confirms the relevance of our strategic thrusts, and the innovative power of L'Oréal. Our initiatives plan is solid. Despite the uncertain economic environment, we are confident in the group's ability to outperform the market in 2012, and to achieve another year of solid growth in both sales and profits," he concluded.

The company's professional products division posted growth of 2.9% like-for-like and 7.3% based on reported figures. The first-half highlight was the division's good performance in the new markets, particularly in Asia and Eastern Europe.

For the consumer products division, the company saw sales growth of 4.7% like-for-like, and 8.1% based on reported figures, and made substantial market share gains in Western Europe and North America.

Sales of the L'Oréal Luxe division increased by 10.4% like-for-like. Growth based on reported figures came out at 17.9%, reflecting the impact of the acquisition of Clarisonic. L'Oréal Luxe is growing in all categories, and is making substantial market share gains.

Also in the first half, the active cosmetics division delivered growth of 5.4% like-for-like and +6.6% based on reported figures. The division's sales are accelerating in North America and the new markets.

The Body Shop recorded like-for-like growth at 5.4% and +0.8% based on reported figures for the period, growing strongly in the new markets, particularly in Southeast Asia where the dynamic sales trend is continuing in India and Indonesia, and sales are accelerating in Russia and in Saudi Arabia. At June 30, 2012, The Body Shop has a total of 2,781 stores.

And Galderma's sales increased by 11.0% like-for-like, and 19.9% based on reported figures. The Asia, Pacific and Latin America zones, with double-digit growth, were the main contributors to sales growth in the first half. Growth was particularly strong in Brazil and South Korea, where the product ranges in Galderma's three fields of activity (prescription drugs, OTC drugs and aesthetic and corrective products) are proving highly successful with health professionals.

More information on this financial report from L'Oreal is available here.

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