The merger between Synthélabo, a 56.6% subsidiary of L'ORÉAL, and Sanofi, will be submitted for approval to the shareholders of both pharmaceutical groups on 18 May 1999. Conditional upon this approval, L'ORÉAL will consolidate Sanofi-Synthélabo by the equity method starting on 1 July 1999. For the sake of consistency, L'ORÉAL has consolidated Synthélabo by the equity method from 1 January 1999. The increases indicated below have been calculated on the basis of Synthélabo's consolidation by the equity method in first quarterly 1998.
Consolidated sales of the L'ORÉAL Group at 31 March 1999 totalled FRF 17.1 billion (EUR 2.6 billion).
The increase compared with first quarterly 1998 on a pro forma basis is 9.5% for reported figures and 14.6% excluding the effects of foreign exchange.
Foreign exchange had a negative impact of 5.2%, compared with a positive 2.2% a year earlier.
On a structural level, the consolidation of the new cosmetics and dermatology subsidiaries had a positive effect of 0.9%
On an unchanged basis, that is, with identical structure and exchange rates, the consolidated sales of the Group, excluding Synthélabo, rose 13.7%.
The increase in Group sales per main branch was as follows:
Including Synthélabo, first quarterly sales would have been FRF 20.3 billion (EUR 3.1 billion), up 12.9% excluding the currency effect.