L’Oréal profits up 11.4%
However it says global economic weaknesses may have an impact in the second half of the year
L'Oréal has reported an 11.4% rise in operating profits to €1.89bn for first half of 2012 and says that despite the economic crisis it is confident of its prospects for the year. Net earnings went up 10.8% to €1.62bn. First half sales rose 10.5% to €11.2 billion.
While not commenting on results expected through the rest of this year, L'Oréal has maintained its intention of exceeding world cosmetics market growth rates which are set to turn out at around 4%. Meanwhile, the second half of 2012 is likely to be markedly affected by world economic weakness, the downturn in Asian markets and the crisis in the EU.
The company already surprised the markets at the end of July when after a slight dip in second quarter sales went higher than expected, helped by its deluxe cosmetics division and improved results from the US.
L'Oréal's president Jean-Paul Agon said that despite the economic uncertainties the group had outpaced the market in every region of the world. In Europe, however, sales in second quarter dipped 0.1% compared with a rise of 1.7% at the start of 2012. Asian sales also slowed from 11% to 9% in second quarter. Agon has interpreted the Asian trend as "an end to Asian overheating".