L'Oreal puts 4.5-percent shine on net profit

15th February 2007, Comments 0 comments

PARIS, Feb 15, 2007 (AFP) - Cosmetics group L'Oreal reported a 4.5-percent rise in net profit to 2.061 billion euros on Thursday, but said that profit excluding exceptional items had surged by 11.9 percent to 1.833 billion euros (2.4 billion dollars).

PARIS, Feb 15, 2007 (AFP) - Cosmetics group L'Oreal reported a 4.5-percent rise in net profit to 2.061 billion euros on Thursday, but said that profit excluding exceptional items had surged by 11.9 percent to 1.833 billion euros (2.4 billion dollars).

The underlying profit figure met the group's target of achieving double-digit profit growth by this measure in 2006, and marked the 22nd year in a row of such growth above 10 percent.

L'Oreal, the biggest cosmetics group in the world, said that profitability had increased in all divisions and in all regions of the world.

Company managing director Jean-Paul Agon said that emerging countries offered "a historic opportunity for strong and lasting growth".

Earnings per share, excluding exceptional, or non-recurrent, items rose 14.7 percent to 2.98 euros, also in line with the company's forecast.

But the recurrent profit total of 1.833 billion euros fell short of the figure of 1.877 billion euros expected by analysts and the price of shares in the group slipped by 0.67 percent to 81.10 euros in an otherwise steady market.

Operating profit rose by 12.1 percent to 2.541 billion euros, and sales advanced by 8.7 percent to 15.79 billion euros, or by 5.8 percent on a basis of unchanged exchange rates.

Agon said that "these overall results and the dynamics they represent give us confidence for 2007".

In particular, the acquisition of British group The Body Shop, for which the results havd been consolidated since July 1 had made a positive contribution, the group said.

Copyright AFP

Subject: French news

0 Comments To This Article