L'Oréal broadly confirms its objectives






World number one cosmetic L'Oréal has reported net profit up 1.5% in the first half, and generally confirmed its 2014 growth targets turnover, but stating "comparable basis" and the results



 
Net income rose to 1.7 billion euros for a turnover down 1.5% to € 11.2 billion, hit by a negative foreign exchange effect, the group said in a statement

At constant scope and exchange rates, sales increased by 3.8% over the period

In the second quarter alone, sales were down 0.7% to € 5.5 billion, and up 4.1% on a comparable basis

Growth was driven by divisions L'Oréal Luxury Products and Active Cosmetics, both up more than 7% in the last quarter on a comparable basis

While noting "an uncertain economic and monetary environment", CEO of L'Oréal, Jean-Paul Agon, said in a statement, said he was "confident in the group's ability to outperform the market again in 2014."

He expressed his confidence in the fact that L'Oréal would "achieve another year of growth in sales on a comparable basis, improve profitability, and growth in earnings per share."

The group has confirmed its overall objectives earlier this year, but added that the goal of sales growth was now expected organic

In the first half, the negative impact of exchange rates had a negative impact for 5.1% of sales, and the group expects that this impact should be about 3.5% for the full year

The band recorded in the first half operating margin of 18.2% of revenue, up 3 points from the previous year

L'Oréal has announced, following the completion in early July its strategic transaction with Nestlé, the Swiss sale of its 50% stake in Galderma would result in a net capital gain tax of about 2, 1 billion euros in the second half

The group also noted that the operation canceled 48.5 million shares acquired from Nestlé during this operation would have a positive effect of more than 5% of its full-year earnings per share
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