L’Oréal reported that first-half earnings rose 7.7% and confirmed its full-year targets, fueled by emerging markets. According to reports, operating income climbed to €2.04 billion ($2.7 billion). Operating profit as a percentage of sales reached 17.4%, a record for a six-month period.
The company is expanding in developing regions such as Asia-Pacific and Latin America, and last month agreed to buy China’s Magic Holdings, as previously reported in Happi. First-half sales rose 4.7% to 11.7 billion euros ($15.6 billion), according to the French beauty giant.
“Although market growth has been slightly slowing down, L’Oréal continued to demonstrate its good dynamics and recorded a solid first half,” said Jean-Paul Agon, chairman and CEO of L’Oréal. “Each division and zone is growing and outperforming its market.”
“The consumer products division and L’Oréal Luxe are growing strongly, driven by L’Oréal Paris, Garnier, Lancôme, Giorgio Armani and Kiehl’s. The professional products division, still held back by a difficult market, is picking up slightly. The active cosmetics division is performing very well, particularly in Western Europe, while accelerating its international roll-out.”
According to Agon, trends of the Group’s flagship brands are favorable, and major product initiatives are really making a difference.
“They are enabling significant breakthroughs in Western Europe and North America. And in the new markets, the four regions are achieving strong growth and are contributing to improve our positions,” said Agnon. “In view of these dynamics, we remain confident in our ability to achieve another year of growth in both sales and profits.”