L'Oréal posts strong first half growth
Emerging markets and euro rates boost results
L'Oréal has posted a rise of 10.2% in first half 2010 sales to €9.7bn with a 12.5% increase to €4.9bn in Q2 but lower organic growth in the quarter of 5.2%. Jean-Paul Agon, group director general, said the growth was largely a reflection of favourable euro rates and penetration of emerging markets in Russia, Brazil and China. Sales in western Europe went up by only 1.1% and rose 4.2% in North America. Growth in the emerging markets as a whole was around 11.1% with increases of 11% in Asia and 18.4% in Latin America. The most marked growth – some 7.6% – was generated by luxury cosmetics sales of the Lancôme, Yves Saint Laurent and Helena Rubinstein divisions of the group. Agon said YSL was expanding strongly and the make-up products company Maybelline was showing strong growth across several continents. Mass market sales from L'Oreal Paris and Garnier went up 4.1% while professional hairdressing products generated sales of 4.7%.
Body Shop sales in contrast dipped 0.1%. L'Oréal has expressed confidence in performance during the current second half year.
