February 23th, 2000
Preliminary 1999 consolidated results
Sales: +12.1% pro forma. Net profit before capital gains/losses and after minority interests: +15.1%
The Board of Directors of L'ORÉAL met on 23rd February, 2000 under the chairmanship of Mr Lindsay OWEN-JONES, Chairman and Chief Executive Officer, and was notified of the group's preliminary consolidated financial statements for 1999.
Main annual group indicators| at 31st December, 1998 pro forma in millions of FF in millions of euros |
at 31st December, 1999 in millions of FF in millions of euros |
Growth as % | |
|---|---|---|---|
| Consolidated sales | 62,892 9,588 |
70,520 10 751 |
+ 12.1 |
| Operating profit | 7,256 1,106 |
8,569 1 306 |
+ 18.1 |
| Adjusted operating profit* | 7,341 1,119 |
8,333 1 270 |
+ 13.5 |
| Profit on ordinary activities before taxation and employee profit sharing |
6,613 1,008 |
7,576 1 155 |
+ 14.6 |
| Net profit on ordinary activities before capital gains/losses of fully consolidated companies |
3,961 604 |
4,569 696 |
+ 15.3 |
| Group's share of net profits of associated companies | 776 118 |
895 136 |
+ 15.3 |
| Net profit before capital gains/losses and after minority interests | 4,714 719 |
5,428 827 |
+ 15.1 |
| * including exchange gains and losses | |||
The consolidated sales of L'OREAL worldwide amounted, in 1999, to FF 70.5 billion (EUR 10.7 billion). Sales growth compared with 1998 was 12.1% based on published pro forma figures, i.e. excluding Synthélabo which merged with Sanofi in 1999.
Sales growth amounted to 11.7%, excluding the 0.4% positive impact of currency fluctuations.
As there was a positive structural impact of 0.4% on L'OREAL sales due to the consolidation of new cosmetics and dermatology subsidiaries on the American continent, like-for-like growth was +11.3% compared with 10.6% in 1998 excluding Synthélabo.
Consolidated profit on ordinary activities before taxation, employee profit sharing and capital gains/losses rose by 14.6% to FF 7,576 million (EUR 1.2 billion) on a pro forma basis.
The following performances were achieved in the group's main branches:
Main annual branches indicatorsSales growth amounted to 11.7%, excluding the 0.4% positive impact of currency fluctuations.
As there was a positive structural impact of 0.4% on L'OREAL sales due to the consolidation of new cosmetics and dermatology subsidiaries on the American continent, like-for-like growth was +11.3% compared with 10.6% in 1998 excluding Synthélabo.
Consolidated profit on ordinary activities before taxation, employee profit sharing and capital gains/losses rose by 14.6% to FF 7,576 million (EUR 1.2 billion) on a pro forma basis.
The following performances were achieved in the group's main branches:
| Cosmetics | Dermatology (1) | |||
|---|---|---|---|---|
| in millions of FF in millions of euros |
Growth | in millions of FF in millions of euros |
Growth | |
| Sales | 68,751 10 481 |
+ 11.9 % | 1,303 199 |
+ 31.6 % |
| Profit before taxation and employee profit sharing | 7,326 1 117 |
+ 13.2 % | 233 36 |
+ 53.6 % |
| (1) Group share, i.e. 50% | ||||
The group's tax charge has increased by 14.3%.
Net profit on ordinary activities before capital gains and losses and after minority interests, which is used to calculate earnings per share, is estimated at FF 5,428 million (EUR 827 million), up by 15.1%.
The Board of Directors is verifying these provisional accounts in liaison with the Statutory Auditors, and will certify them on 5th April, 2000.
In other respects, the Board of Directors noted the resignation of Mr Pascal CASTRES SAINT MARTIN from his directorship. The Board expressed its warm thanks to Mr. Pascal CASTRES SAINT MARTIN and, following the Chairman's proposal, the Board decided to provisionally appoint Mr Michel SOMNOLET as a director. Mr Michel SOMNOLET has been Vice-President in charge of Administration and Finance since 1st January, 2000.
Net profit on ordinary activities before capital gains and losses and after minority interests, which is used to calculate earnings per share, is estimated at FF 5,428 million (EUR 827 million), up by 15.1%.
The Board of Directors is verifying these provisional accounts in liaison with the Statutory Auditors, and will certify them on 5th April, 2000.
In other respects, the Board of Directors noted the resignation of Mr Pascal CASTRES SAINT MARTIN from his directorship. The Board expressed its warm thanks to Mr. Pascal CASTRES SAINT MARTIN and, following the Chairman's proposal, the Board decided to provisionally appoint Mr Michel SOMNOLET as a director. Mr Michel SOMNOLET has been Vice-President in charge of Administration and Finance since 1st January, 2000.
