PARIS, Sept. 4, 2001 (PRIMEZONE) -- L'OREAL (Paris Stock Exchange:OR)
-- The group's consolidated net sales at June 30, 2001 amounted to E
6.98 billion. Sales growth was 13.5% compared with the 1st half of
2000.
-- Net profit before capital gains and losses after minority
interests, used to compute earnings per share, amounted to E 587.1
million, growing by 26.3%. This figure does not include non-
recurrent items, and in particular the net capital gain recorded
on the disposal of the investments in Marie-Claire and Lanvin.
This gain is included in the net book profit after minority
interests, which amounted to E 700.7 million, an increase of
52.9%.
According to Mr. Lindsay Owen-Jones, Chairman and Chief Executive Officer of L'Oreal, "Despite the less favorable economic climate in the main markets, L'Oreal was able to maintain strong growth in sales and profit. While these figures cannot be extrapolated directly, they are extremely encouraging, and allow us to look forward to get another year of strong internal growth and improvement in margins. The 2001 fiscal year should therefore be a very good year for L'Oreal."
Strong Growth in Sales
New products
-- The brands concentrated their product launches on the group's core
business segments: colorants, make-up, hair care, skin care and
perfumes. Amongst others, there were successful launches for the
colorants open by L'Oreal Paris and Lumia by Garnier, Smooth
Result foundation by Maybelline, the Oleo-Relax hair care line by
Kerastase, Age Fitness skin care from Biotherm and the Emporio
White fragrance by Giorgio Armani.
-- Following the success of the Age Perfect skin care line by
L'Oreal Paris, several other products were launched to take
advantage of the high potential of the "baby boomers" market:
Absolue by Lancome, Novadiol by Vichy and the new shampoo line
Elseve Regenium by L'Oreal Paris.
Sustained Growth in the United States
acquisitions, and by gaining large market shares, particularly in
colorants and in perfumes, where for the first time ever
L'Oreal succeeded in putting four of its women's perfumes into the
top ten chart.
Major Successes in New Markets
-- In China, where the group's sales increased by more than 20%,
Lancome became the number one brand in the main department stores,
while Maybelline further consolidated its leadership in mass-
market make-up.
-- The group has achieved exceptional success in several other
markets: Mexico (+30%), Russia (+65%), Thailand (+30%), India
(+29%).
-- The group is continuing to systematically introduce its core
brands into new countries: Garnier in Korea, Vichy in Mexico, La
Roche Posay in Hungary, and Helena Rubinstein in China.
In the cosmetics sector, sales trends by geographical zone at June 30, 2001 were as follows:
At June 30, 2001 Growth Growth
(E millions) on a comparable based on
basis consolidated
figures
Western Europe 3,462.7 +4.6% +4.8%
North America 2,104.3 +9.3% +29.8%
Rest of the World 1,227.9 +14.5% +15.0%
Cosmetics Total 6,794.9 +7.7% +13.4%
Strong Increase in Operating Profit
Adjusted operating profit increased by 23.0% to E 814.4 million. It represented 11.7% of consolidated sales, compared with 10.8% at end-June 2000.
Adjusted operating profit (a) by sector
At June As % of sales At June As % of sales
30, 30,
2000 2000
Cosmetics E 631.3 m 10.5% E 790.3 m 11.6%
Dermatology(b) E 32.9 m 28.1% E 25.7 m 18.8%
Consolidated
total E 661.9 m 10.8% E 814.4 m 11.7%
(a) Operating profit including exchange rate gains and losses.
(b) Group share, i.e. 50%.
The net financial charge, excluding exchange rate gains and losses, amounted to E 87.3 million, compared with E 60.2 million at end-June 2000, due to acquisitions carried out mainly in the second half of 2000.
Consequently, the pre-tax profit of fully consolidated companies amounted to E 727.1 million, an increase of 20.8%.
Corporate taxes at group level increased 16.6% to E 261.4 million.
Net profit before capital gains and losses of the fully consolidated companies was thus, E 465.7 million, an increase of 23.4%.
Substantial Contribution from Equity Affiliates
The group share of net profit of equity affiliates amounted to E 126.2 million. The contribution of SANOFI-SYNTHELABO to consolidated profit was E 125.7 million, an increase of 47.5%.
Main Half-year Indicators:
At June 30, 2000 (b) At June 30, 2001 Growth
in E millions
Consolidated
sales 6,149.9 6,978.3 +13.5%
Operating profit 690.2 792.4 +14.8%
Adjusted operating 661.9 814.4 +23.0%
profit (a)
Pre-tax profit of
fully consolidated
companies 601.7 727.1 +20.8%
Net profit of fully
consolidated
companies 377.6 465.7 +23.4%
Group share of
net profit of equity
affiliates 91.0 126.2 +38.6%
Net profit before
capital gains and
losses and
minority
interests 468.6 591.9 +26.3%
Net profit before
capital gains and
losses after
minority interests 464.9 587.1 +26.3%
(a) Operating profit including exchange rate gains and losses.
(b) Some subsidiaries have reclassified their accounts to comply with
the group's accounting plan. These reclassifications do not
affect the group's earnings levels.
For more information, please contact your bank, stockbroker or financial institution, or consult your usual newspapers and the Internet site for shareholders and investors http://www.loreal-finance.com; alternatively, call the local-rate number: 0 800 66 66 66 - L'OREAL - 41 rue Martre - 92117 CLICHY-France