L’Oreal Sees Double Digit Growth for 2003

L’Oreal SA, Paris, chief executive Lindsay Owen-Jones said that the world’s biggest cosmetics maker believes it is on track for a 19th straight year of double-digit profit growth in 2003 despite gloomy trading conditions. “In spite of the difficulties, we’re targeting double-digit profit growth again this year,” Mr. Owen-Jones said. Net profit rose 19% last year.

Speaking to analysts after the maker of Maybelline, Garnier and L’Oreal brand goods said revenue dipped 1.1% in the first quarter on a 12% hit from currency fluctuations, Mr. Owen-Jones said that the impact through 2003 would ease off as 2003 progresses but over the full year it would be at least as negative in 2002.

Last year, the growing strength of the euro ended up trimming 4.8% off revenue, L’Oreal said. Mr. Owen-Jones identified the company’s ability to continue to improve operating margins as a basis for believing it can deliver double-digit profit growth yet again. However, he described the impact of currency fluctuations as one of the two major challenges facing L’Oreal this year, citing economic uncertainty as the other.