L’Oréal Paris 2012 net profit surges 17.6%

Global cosmetics manufacturer L’Oréal Paris has reported a 17.6% rise in net profit to €2.87bn for the full year 2012, up from €2.43bn during the same period in 2011.

The firm posted net sales of €22.46bn, an increase of 6.2% for the current year from €20.34bn in the corresponding year.

L’Oréal’s operating profit for the full year increased to €3.69bn, compared to €3.29bn in the same period of 2011.

L’Oréal Paris chairman and chief executive officer Jean-Paul Agon said in 2012 the group achieved strong sales growth, and once again demonstrated its ability to outperform the beauty market, and to gain market share, even in the more difficult markets of Western Europe and the US.

"2012 also marked a milestone in the acceleration of the Group’s internationalisation, as the "New Markets" became the number one geographic zone. Lastly, the profits and cash flow have grown very strongly, reaching record levels, and confirming the power of our business model," Agon added.

L’Oréal’s sales in the Asia-Pacific region rose by 9.6% on a like-for-like basis and 18.4% on a reported basis.

Latin American sales grew by 8.7% on a reported basis, and by 17.6% in Africa and the Middle East.

The company also managed to improve its performance in North America, where sales surged 18.3% on a reported basis, and by 2.1% in Western Europe despite the eurozone debt crisis.

L’Oréal said in 2012 The Body Shop sales grew by 4.9% like-for-like and +11.4% based on reported figures.

The brand, which launched its new "Beauty with Heart" identity in 2012, started rolling out the new "Pulse" store concept.

Apart from this, The Body Shop continued its multi-channel approach with a strong increase in e-commerce.

Accoording to the group, Galderma sales increased by 5.9% like-for-like basis and 12.9% on reported basis.

L’Oréal Group is a France based cosmetics manufacturer whose portfolio includes hair care, skin care, sun protection, make-up and perfumes.

The company is active in the dermatological, tissue engineering and pharmaceutical fields and also a nanotechnology patent-holder in the US.

Image: Cosmetics giant L’Oreal says its net profit growth in the beauty segment was boosted by hair oils, luxury brands and with the recent launch of Initialiste, the first beauty serum with plant stem cells . Photo: Tangopaso (talk).