L'Oréal Reports Growth Despite Difficult Market
Published on Aug 10 2012 11:21 AM in A-Brands
The Group's figures show a like-for-like increase of 6 per cent in group sales for the first half of the year, to €11.21 billion, with the consumer products division racking up sales of €5445.2 million, a like-for-like growth of 4.7 per cent. By far the most lucrative segment, consumer products had a like-for-like sales boost of 4.2 per cent in the second quarter, with sales of €2675.7 million.
In the first six months of the year, growth was slow in western Europe due to a "flat to slightly negative market", with a like-for-like sales increase of 0.8 per cent, or 1.9 per cent based on reported figures. The French company said it had good performance in the United Kingdom, France and Germany, with market share gains in Italy and Scandinavia, while "negative trends" affected business in southern Europe. Eastern Europe provided a like-for-like sales growth of 3.1 per cent with particular success in Russia and Ukraine.
A slowdown was reported in South Korea, Taiwan and China, but growth figures for the Asia, Pacific zone showed like-for-like growth of 12.5 per cent.
Sales have been driven by Garnier's Miracle Skin Perfector (BB Cream), which has had "spectacular success" in Europe according to the group. Jean-Paul Agon, chairman and CEO, said "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." (10 Aug)