The organic growth of L'Oreal slows in Q2
L'Oreal reported a slowdown in organic growth in the second quarter compared to the first, despite a very strong sales growth in emerging countries.
The global cosmetics giant has seen its sales climb 12.4% to EUR 4.945 million, slightly above the consensus of analysts polled by Reuters writing (Euros 4,897,000) which has benefited from the positive effects the decline of the euro.
Its organic growth has in turn emerged at 5.2% against 5.6% forecast by analysts, on average, marking a slowdown from 7.4% in the first quarter had benefited from more favorable basis for comparison (- 4.3% first quarter 2009 and -2.1% in the second).
Citing "important breakthrough" in the new markets, including China, Brazil, Russia, India and Indonesia, the group said in a statement to "tackle the second half with confidence."
While sales in Western Europe have increased modestly (+1.1% on a comparable basis), they increased by 4.2% in North America and, especially, have jumped from 11.1% in emerging countries, with increases of 11% in Asia and 18.4% in Latin America.
Sales of luxury products (Lancome, Armani, Helena Rubenstein and Yves Saint Laurent Beauty) have signed the largest increase (+7.6%) of the four major divisions.
These consumer products (L'Oreal Paris, Garnier) rose 4.1%, those of professional products for hairdressers took 4.7% and the products sold in drugstore rose 6.7% .
Against the trend, The Body Shop chain has seen sales stagnate (-0.1%).
The L'Oréal closed Monday down 0.86% to 82.09 euros on the Paris Stock Exchange for a market capitalization of 49.2 billion euros. The sign value up 5.2% since January, while the CAC down 9.37% over the period and the diverse European index of consumer goods ahead of 12.05%.
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