L'Oréal Group's first-half profit reached 1.506 billion euros

A few days ago, L'Oreal announced its operating conditions for the first half of this year. As of June 30, 2011, the group achieved global sales of 10.15 billion euros, an increase of 5% over the same period of last year. In the first half of the year, profits reached a record high for the same period, reaching 1.506 billion euros. The gross profit margin further improved to 71.5%, and the operating profit rate reached 16.8%.

L'Oréal Group Chairman and CEO Mr. An Gong said in his assessment of the operating conditions in the first half of the year: “The organic growth in the first half of 2011 reflects the good growth momentum of L'Oréal Group. The Group is further consolidating its market position globally, especially North American, Latin American and Asia Pacific markets."

L'Oreal said that the group’s performance in the first half of this year was upward, stable and of high quality. Although raw material costs are higher, gross profit is improving. The operating margin is at a high level and profit growth is strong. “We continue to implement policies for continuous investment in R&D, advertising and promotion, paving the way for the Group's future development. At the same time, the Group's liabilities are at a very low level.”

“In 2011, we can confirm the goals and ambition to achieve an average increase above the market and improve the profitability of the Group.” An Gong concluded that L'Oréal’s business model is based on strong innovation driven, dynamic brand portfolio and great potential for internationalization. The above outstanding performance reflects the quality and robustness of this model. In an uncertain economic environment, these foundations have made L’Oréal more confident than ever before in its ability to achieve sustained and profitable growth.