With solid, good quality results L'Oréal has prepared itself well for a return to growth in 2010
2009 sales: 17.5 billion eurosGood quality operating profit - Improvement in gross profit rate
- Reduction in selling, general and administrative expenses
- Increase in R&D and advertising & promotion expenses
Strong growth in cash flowNet earnings per share* at 3.42 eurosGrowth in dividend** to 1.50 euro (+4.2%)Commenting on the figures, Mr Jean-Paul Agon, Chief Executive Officer of L'Oréal, said:
“After a difficult start to the year due to a contraction in sell-out and drastic inventory reduction by the trade, the cosmetics market has gradually improved and ended up slightly positive. In this context, L’Oréal has weathered the crisis well and confirmed its position as the world leader in beauty.
2009 has been an exceptional vintage for innovation, and a year of very strong dynamism in Consumer Products, along with the conquest of a large number of new hair salons and rapid growth in new markets. The group ended the year with good quality operating results, record cash flow and a very robust financial situation.
We have also devoted the year to preparing for the future with three major strategic changes: the broadening of the consumer base with the target of winning a billion new consumers, a thorough transformation of the company to make it stronger and more flexible, and finally, a determined increase of investments in R&D and advertising & promotion to accelerate growth.
Overall, L’Oréal has emerged from 2009 stronger, and has prepared itself well for a return to sales and results growth in 2010.”
Sir Lindsay Owen-Jones said: “2009 has ended with good quality results, in a truly exceptional economic context. Thanks to the energy, imagination and combativity of Jean-Paul Agon and his teams, the group has succeeded in renewing itself and preparing for the future. The proposal by the Board of Directors to pay a dividend of 1.50 euro is an expression of our confidence in the solidity of L'Oréal and of our legitimate and particular concern to achieve the right balance.”
Read the full press release published on February 15, 2010
Watch the video of the information meeting held on February 16, 2010
16 février 2010
* diluted net earnings per share, based on net profit excluding non-recurrent items attributable to the group.
** proposed at the Annual General Meeting of April 27th, 2010.
