L'Oréal announces a strong increase in results
High level of operating margin at 17.3% of sales
Strong increase in results:
- Operating profit: +21.4%
- EPS*: +15.3% at 2.39 euros
- Cash flow**: +20.9%
Good quality results:
- Significant improvement in gross profit
- Good control of selling, general and administrative expenses
- Sustained advertising and promotional investments
The group is tackling the second half with confidence
News release of August 25, 2010
Commenting on the figures, Mr Jean-Paul Agon, Chief Executive Officer of L'Oréal, said:
“The strong organic growth of our four divisions, all geographic zones and all categories, is bearing out our major strategic choices: concentrating on high value-added innovations at accessible prices, opening up new product categories, accelerating international expansion and determined investment in advertising & promotion and in R&D.
The results have also increased strongly, although once again it is important to emphasise that half-year figures are not particularly representative. Operating profit has grown twice as fast as sales, enabling margin to reach a record level. The significant improvement in gross profit and the very strict control of selling, general and administrative expenses reflect the efforts made over the last two years to achieve a thorough transformation, and have enabled increased investments in R&D and in the advertising & promotion business drivers which are paving the way for the future.
The results underpin the group's “virtuous circle” of growth and confirm the vitality of L’Oréal’s business model.
We are tackling the second half with confidence, and intend over the full year to keep on strengthening our worldwide positions and the profitability of our businesses.”
* diluted net earnings per share, based on net profit excluding non-recurrent items attributable to the group.
** Net cash provided by operating activities.
August 25, 2010
