In a difficult environment, L'Oréal is proving resilient and continues to grow
Increase in Sales to 17.542 billion euros
+ 2.8% based on reported figures
+ 3.1% like-for-like
+ 6.6% at constant exchange rates*
Rise in net earnings per share(1) to 3.49 euros
+ 3.8% based on reported figures
+ 6.8% at constant exchange rates*
Strengthened worldwide market share**
15.8% (15.2% in 2007)
Growth in dividend*** to 1.44 euro
+ 4.3%
Commenting on the figures, Mr Jean-Paul Agon, Chief Executive Officer of L'Oréal, said: “In an environment made very difficult in 2008 by the economic crisis, L'Oréal is proving resilient and is continuing to grow in terms of sales, net earnings per share and market share.
With annual sales growth of +3.1% like-for-like and +6.6% at constant exchange rates, L’Oréal continued to strengthen its positions in 2008 and increased its worldwide market share.
In a year when the downturn in markets was combined with the adverse impact of currency fluctuations and costs in raw materials, the group's net profit held up well, and growth in net earnings per share of +3.8% based on reported figures and +6.8% at constant exchange rates is practically in line with the target announced in October.
We are tackling 2009 with realism, confidence and resolve. Realism because the economic environment will certainly still be difficult and we are prepared for this. Confidence because the cosmetics market has always shown resilience at times of crisis, and because L'Oréal's fundamentals are strong and our financial situation is robust. But also resolve, because thanks to our product innovation momentum, the unique quality of our brand portfolio, our possibilities for geographic expansion and our determination to strengthen our business drivers and control our costs, we are confident in L'Oréal's ability to successfully weather this adverse economic climate and to even emerge stronger than before.”
Sir Lindsay Owen-Jones said: “The group's 2008 results reflect the remarkable resilience of the L'Oréal business model, the quality of the management of Jean-Paul Agon and his teams in an exceptionally difficult environment, and the determination to prepare for 2009 in the best possible conditions. The Board of Directors' proposal to pay a dividend of 1.44 euros expresses our confidence in the group's solidity, and our concern to achieve the right balance.”
* based on constant translation rates: 2008 data at 2008 rates / 2007 data at 2008 rates** L’Oréal estimate. 2008 with YSL Beauté over a full year*** proposed at the Annual General Meeting on April 16th, 2009(1) diluted net earnings per share, based on net profit excluding non-recurrent items attributable to the group.
February 16, 2009
