L'Oréal posts positive first quarter

- Last updated on GMT

Related tags: Cent, Profit

L'Oréal has announced a good start to 2004 following the release of
its first quarter results. The company saw growth in all of its
cosmetic divisions despite a high base of comparrison against last
year's results. The dermatology business suffered however following
a downturn in the company's core market.

"All the cosmetic divisions have made a good start to the year and the achievements in each geographical zone are in line with our expectations,"​ said L'Oréal's CEO Lindsay Owen-Jones.

L'Oréal reported consolidated sales of €3.7 billion, up 5.4 per cent - based on constant group structure and exchange rates - in comparrison to a year earlier for the first quarter of 2004 ended 31 March. The impact of currency fluctuations resulted in a drop of 4.5 per cent however for the same period.

The active cosmetics division showed the greatest growth overall with a 15.7 per cent increase to €273 million in comparrison to the previous year. Consumer sales remained the most profitable division for the company achieving €2 billion in sales despite a fairly stagnant growth in comparrison to a year earlier.

"These figures seem extremely encouraging even if we attach only relative importance to the performance of a single quarter. It should be noted that the first quarter of last year was particularly strong reflecting the decision at the time to bring forward launches notably in the Consumer Division,"​ said Owen-Jones.

In West Europe growth remained stagnant but progression came on top of a particularly high base of comparison for the previous year claimed the company - when the region turned out L'Oréal's best operating profit of 14.8 per cent.

In North America, L'Oréal's core market, sales growth fell by 5.7 per cent but continued to be successful in light of the 12.9 per cent profit margin achieved for the year in 2003.

"In the coming months a more favourable historical comparison should allow us to further improve our growth rate. The impact of currency fluctuations, once again strongly negative at the end of March, should be noticeably reduced over the rest of the year, based on present exchange rates,"​ said Owen-Jones.

The rest of the world achieved double-digit rates of growth with Asia returning €313 million in sales, a 13.3 per cent growth in comparrison to the previous year.

The acquisition of the controlling interest in Shu Uemura in Japan, and of Mininurse in China, led to a net structural impact of 0.4 per cent.

However the company's dermatology business was confronted with difficult conditions in the United States - L'Oréal's core market. Sales growth in the US dropped by 12.6 per cent in comparrison to the same quarter in 2003.

L'Oréal​, the maker of Maybelline and Lancome make-up, posted a 13.5 per cent rise in annual net operating profits for 2003, from €1.46 billion in 2002 to €1.65 billion, outperforming the analyst forecast of €1.61 billion.

Related topics: Business & Financial, Fragrance

Related news

Show more

Related products

show more

Kickstart your Digital Makeover with PLM

Kickstart your Digital Makeover with PLM

Centric Software® | 04-Aug-2021 | Application Note

Digital Transformation is key for cosmetics and personal care brands, manufacturers and retailers looking to keep up with evolving market challenges and...

Uncover the secrets behind Rockstar CFOs

Uncover the secrets behind Rockstar CFOs

Oracle NetSuite | 13-Apr-2021 | Technical / White Paper

CFOs have never worked harder, but what makes a successful CFO such a rockstar? High-performing CFOs understand the mission, goals and objectives of the...

Lebermuth’s S/S 2022 Fragrance Trend Report

Lebermuth’s S/S 2022 Fragrance Trend Report

The Lebermuth Company | 09-Dec-2020 | Research Study

Explore your senses from around the world and uncover 8 new fragrances by Lebermuth's perfumers that were inspired by Spring & Summer 2022 consumer...

Scent Expedition: Madagascar

Scent Expedition: Madagascar

Symrise | 15-Jul-2020 | Product Presentation

With 90% of its plants and animals found nowhere else, Madagascar is a wealth of biodiversity like no place else on earth. This island off the coast of...

Related suppliers

Follow us


View more