L'Oréal Shares Rise After Cosmetics Group Posts Sales Rebound
L'Oréal's shares have risen after the world's biggest cosmetics group reported higher-than-expected revenue growth for the fourth quarter.
L'Oréal's shares were up 1.2% in early session trading, among the best performers on France's benchmark CAC-40 index .
The French group reported late on Thursday that sales had reached €7.88 billion euros in the October to December period, flat from a year earlier on a reported basis but a rise of 4.8% on a like-for-like basis, without currency effects and acquisitions, beating forecasts.
Thanks to the outstanding commitment of its employees, L’Oréal has traversed this crisis in the best possible condition and has even grown stronger," commented Jean-Paul Agon, chairman and chief executive. "As anticipated and announced, the group returned to growth in the second half, with a fourth quarter in acceleration at +4.8%, and won significant market shares."
Agon also praised the group's growth in e-commerce, which was up 62% across all divisions and regions.
"Thanks to its strength in digital and e-commerce, which has again increased considerably during the crisis, L’Oréal has been able to maintain a close relationship with all its consumers and compensate to a large extent for the closure of points of sale," he added.
"L'Oréal's industry outperformance demonstrates the power of its well diversified and high-quality brand portfolio," wrote investment bank Jefferies, which kept a "hold" rating on the stock.