When exchange rates aren't in their favor, multinationals really like "like-for-like." That was the case at L'Oréal, which reported first half results today. The company noted that on a like-for-like basis, sales rose 3.8%, but on a reported basis, sales declined 1.5% to E11.17 billion.
In the second quarter, on a like-for-like basis, sales 4.1%, but as reported they fell 0.7% to E5.5 billion.
By division, for the first half, professional products rose 3.0% like-for-like and -1.7% based on reported figures. The division's growth was weaker in Asia, but has been confirmed in Western Europe and the US.
Consumer product sales rose 2.0% like-for-like, but fell 4.2% based on reported figures.
L'Oréal Luxe sales rose 7.4% like-for-like and 2.7% as reported.
Sales of active cosmetics rose 8.1% like-for-like and 3.2% as reported.
Finally, The Body Shop's sales fell 1.7% like-for-like and 1.4%as reported.
The company noted that first-half sales showed contrasts by distribution channel. L’Oréal Luxe is growing rapidly, driven by the vitality of the novel brands Urban Decay, Kiehl’s and Clarisonic and by the success of fragrances with Lancôme, “La Vie est Belle” and Giorgio Armani, "Sì". The Active Cosmetics Division also delivered a very good performance thanks to La Roche-Posay, which this year once again is growing very strongly, the continuing recovery of Vichy, and the roll-out of SkinCeuticals. The Professional Products Division is confirming its gradual improvement across all its brands. The Consumer Products Division’s growth is held back by a sluggish American market and, to a certain extent, by a slowdown in the New Markets, but remains solid in Western Europe, according to chairman Jean-Paul Agnon.
"In an uncertain economic and monetary environment, we are confident in the Group's ability to once again outperform the market in 2014 and to post another year of like-for-like sales growth, improved profitability and increased net earnings per share," he concluded.