L’Oréal : 9 Months’ Sales Growth And Final First Half Results Group

Consolidated sales for the L'Oréal Group during the first nine months of 1997 were FF 51.16 billion. Growth compared with the same period in 1996 was 14.6 % on published figures and 8.5 % on a comparable basis, excluding the impact of movements in Group structure and exchange rates.

The difference between published and comparable figures is primarily a result of fluctuations in exchange rates. Nevertheless, the scope of consolidation was slightly broader, reflecting the consolidation of Maybelline, Giuliani SA and Henning Berlin GmbH over the full nine month period in 1997.

First-half 1997 consolidated sales were up 13 % on published figures and 8.1 % on a comparable basis.

Operating profit for the six months to 30 June 1997 was up 15.9 % to FF 3.868 billion.

After interest expenses resulting from the acquisitions made by the Group as well as the impact of exchange rate fluctuations, 1997 interim profit as of June 30 1997, on ordinary activities before taxation, employee profit sharing and capital gains and losses was up 15.5 % to FF 3.564 billion.

Over the full year, the Group hopes to achieve an increase in sales and profit before taxation, employee profit sharing and capital gains and losses at least equivalent to the rise recorded in the first half, provided there is no substantial deterioration in exchange rates between the French franc and leading currencies.

With the same proviso, the increase in 1997 net profit before capital gains and losses, after minority interests, should be higher than in 1996, despite the significant rise in corporate income tax.