L'OREAL
A CONTRASTED MARKET
ENCOURAGING PROSPECTS
TARGETS CONFIRMED
Sales: 16.56 billion euros - Published sept 30 2014,
+3.3% like-for-like
-0.4% based on reported figures
Commenting on the figures, Jean-Paul Agon, Chairman and CEO of L'Oréal, said:
"In the third quarter, L'Oréal recorded low growth because of a slight contraction in the Consumer Products Division, as the mass market hit an air pocket in Western Europe.
On the other hand, there has been a succession of good news since the end of the summer:
In view of these factors, we think the Group's like-for-like growth should reaccelerate in the fourth quarter, particularly in the Consumer Products Division. This trend should be amplified by an extremely positive currencies effect.
A CONTRASTED MARKET
ENCOURAGING PROSPECTS
TARGETS CONFIRMED
Sales: 16.56 billion euros - Published sept 30 2014,
+3.3% like-for-like
-0.4% based on reported figures
Commenting on the figures, Jean-Paul Agon, Chairman and CEO of L'Oréal, said:
"In the third quarter, L'Oréal recorded low growth because of a slight contraction in the Consumer Products Division, as the mass market hit an air pocket in Western Europe.
On the other hand, there has been a succession of good news since the end of the summer:
- a steady mass market improvement in the United States
- continuing market growth in emerging countries
- the resumption of our market share gains in the mass market in Western Europe during the third quarter
- continuing good momentum in our Selective Divisions
- and lastly, the favourable turnaround in the monetary environment.
In view of these factors, we think the Group's like-for-like growth should reaccelerate in the fourth quarter, particularly in the Consumer Products Division. This trend should be amplified by an extremely positive currencies effect.
Meanwhile, we are actively pursuing the strategic strengthening of our portfolio thanks to targeted acquisitions of complementary brands whose development will fuel the Group's like-for-like growth: brands with strong local presence such as Magic in China and Niely in Brazil, and brands with high international potential such as NYX, whose digitally-based business model is also a source of inspiration for our brands.
All in all, 2014 should be another year of improved economic performance for L'Oréal, with the Group slightly outperforming the worldwide cosmetics market, improving operating profitability, and increasing its net earnings per share, thanks in part to the accretive impact of the strategic transaction with Nestlé. This transaction will also ensure very strong growth in net income, thanks to a capital gain of about 2 billion euros."
All in all, 2014 should be another year of improved economic performance for L'Oréal, with the Group slightly outperforming the worldwide cosmetics market, improving operating profitability, and increasing its net earnings per share, thanks in part to the accretive impact of the strategic transaction with Nestlé. This transaction will also ensure very strong growth in net income, thanks to a capital gain of about 2 billion euros."
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