- Improvement in gross profit at 71.5%
- Sustained investments in R&D and Advertising & Promotion
- High operating margin, at 16.8% of sales
- Net profit excluding non-recurring items after non-controlling interests:€1,506m, +6.7%
- Net profit after non-controlling interests: +11.6%
- EPS** at 2.52 euros: +5.4%
Confidence in the improvement of profitability for 2011.
Commenting on the figures, Mr Jean-Paul Agon, Chairman and CEO of L'Oréal, said:
“Organic growth in the first half of 2011 has confirmed the good dynamics of the group, which is further strengthening its worldwide positions, particularly in North America, in Latin America and in Asia Pacific.
The first-half results are up, solid and of good quality. Gross profit is improving, despite the higher cost of raw materials. Operating margin is at a high level, and net profit is growing strongly. At the same time we are continuing to pave the way for the future with our ongoing policy of sustained investments in R&D and advertising & promotion business drivers. Finally, the group’s debt is particularly low.
These performances reflect the quality and solidity of the L’Oréal business model, based on powerful innovation, the vitality of our brand portfolio and a vast potential for internationalisation. In an uncertain economic environment, these fundamentals make us more confident than ever in the group’s ability to build sustainable and profitable growth.
For 2011, we confirm our ambition to outperform the market and improve the group’s profitability.”
* net profit excluding non-recurring items after non-controlling interests.
** diluted net earnings per share, based on net profit excluding non-recurring items after non-controlling interests.
August 30, 2011