Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Euronext Paris  >  L'Oréal    OR   FR0000120321

L'ORÉAL (OR)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Luxury cosmetics boost fourth-quarter sales at L'Oreal

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/08/2018 | 10:17pm CET
View of the entrance of cosmetics company L'Oreal's new World hair research centre in Saint-Ouen

PARIS (Reuters) - Strong demand in Asia for L'Oreal's (>> L'Oréal) luxury cosmetics like Lancome fuelled sales growth in the fourth quarter, as the world's biggest beauty products maker faces more muted appetite for its mass market labels, especially in the United States.

PARIS (Reuters) - Strong demand in Asia for L'Oreal's (>> L'Oréal) luxury cosmetics like Lancome fuelled sales growth in the fourth quarter, as the world's biggest beauty products maker faces more muted appetite for its mass market labels, especially in the United States.

Make-up brands around the world are tapping into booming demand from a growing Chinese clientele and from young consumers often influenced by trends they spot on social media.

Demand for premium skin or hair care products is also on the rise alongside a broader revival in the luxury goods industry equally driven by Asian consumers.

L'Oreal and major rivals like U.S.-based Estee Lauder (>> Estee Lauder Companies) are reaping the benefits even though the French firm makes most of its money from its lower-end consumer products, like Garnier shampoo and Essie nail varnish.

L'Oreal's mass market business grew three percent in the fourth quarter, year-on-year, crimped by a tough U.S. market but up slightly from the third quarter. Meanwhile, the luxury business notched up near 10 percent growth on a like-for-like basis, which strips out currency swings and acquisitions.

CEO expects "significant growth"

The beauty industry "should remain dynamic and contrasted" in 2018, L'Oreal Chairman and Chief Executive Jean-Paul Agon said in a statement, adding he was confident of significant growth in like-for-like sales.

Operating profitability should increase, Agon said. It hit a record 18 percent in 2017, after L'Oreal sold off the Body Shop, where margins were low.

L'Oreal - which has previously not ruled out buying Nestle's (>> Nestlé) 23 percent stake in the firm should its Swiss shareholder want to sell - would have the resources to do so, Agon said separately on Thursday in an interview with the Financial Times.

"We have all the resources for that. We are cash rich," Agon was quoted as saying. He also pointed to L'Oreal's 9 percent stake in drugmaker Sanofi (>> Sanofi), which analysts have long said could be sold to fund such a purchase.

An agreement between Nestle and L'Oreal's biggest investors, the Bettencourt family, not to increase their stakes expires in mid-March, following the death last September of matriarch Liliane Bettencourt.

That stirred speculation Nestle could sell out or even look to launch a takeover of L'Oreal, though Agon has previously said the status quo was unlikely to change in the medium-term.

L'Oreal is due to hold an earnings news conference on Feb. 9.

ONLINE ON THE RISE

Overall, L'Oreal's sales rose by a better-than-expected 5.5 percent in the fourth quarter on a comparable basis, and revenues for the whole of 2017 reached 26 billion euros (22.89 billion pounds), up 4.8 percent like-for-like, compared to 4.7 percent growth in 2016.

The share of products sold online increased, reaching 7.7 percent of all sales at year-end, up from 5 percent two years earlier. Operating income grew 3 percent in 2017, to 4.7 billion euros.

L'Oreal shares closed down 2.16 percent at 171.8 euros on Thursday before it released earnings. They have fallen 7.1 percent so far this year, after rising 6.7 percent in 2017.

Many of L'Oreal's peers have also posted better-than-expected revenues or profits for the last three months of 2017, including Clinique owner Estee Lauder and U.S. cosmetics producer Coty (>> Coty).

(Editing by Adrian Croft and Elaine Hardcastle)

By Sarah White and Pascale Denis

Stocks treated in this article : L'Oréal, Sanofi, Estee Lauder Companies, Nestlé, Coty
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on L'ORÉAL
12:40pStronger European Earnings Augur More M&A, Higher Dividends
DJ
02/16L'OREAL : L’Oréal’s new faces for 2018
PU
02/15Growth formula eludes under-fire Nestle, L'Oreal stake unchanged
RE
02/15Nestle Net Profit Declines; Won't Renew L'Oreal Shareholder Pact -- Earnings ..
DJ
02/15NESTLE : sales disappoint, doesn't plan L'Oreal stake increase
AQ
02/15Nestle Net Profit Declines; Won't Renew L'Oreal Shareholder Pact
DJ
02/14L'OREAL : L’Oréal in the Top 10 “Most digital friendly employers&rdq..
PU
02/13L'OREAL : Top stylists show they're worth it
AQ
02/13L'OREAL : 2017 annual results
AQ
02/12L'OREAL : L’Oréal named as one of the World’s Most Ethical Companies..
PU
More news
News from SeekingAlpha
02/17STOCKS TO WATCH : Retail Heavyweights To Center Stage 
02/09L'Oreal Co. ADR 2017 Q4 - Results - Earnings Call Slides 
02/09L'Oreal reports FY results 
02/08L'Oreal wants to buy Nestle's stake in itself 
01/25Tracking Ken Fisher's Fisher Asset Management Portfolio - Q4 2017 Update 
Financials (€)
Sales 2018 26 431 M
EBIT 2018 4 815 M
Net income 2018 3 845 M
Finance 2018 3 296 M
Yield 2018 2,12%
P/E ratio 2018 25,84
P/E ratio 2019 24,29
EV / Sales 2018 3,62x
EV / Sales 2019 3,41x
Capitalization 98 987 M
Chart L'ORÉAL
Duration : Period :
L'Oréal Technical Analysis Chart | OR | FR0000120321 | 4-Traders
Technical analysis trends L'ORÉAL
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 30
Average target price 189 €
Spread / Average Target 6,7%
EPS Revisions
Managers
NameTitle
Jean-Paul Agon Chairman & Chief Executive Officer
Barbara Lavernos Executive Vice President-Operations
Christian Mulliez Chief Financial Officer & EVP-Administration
Laurent Attal Executive Vice President-Research & Innovation
Martha Crawford-Heitzmann SVP-Advanced Research & Scientific Directorate
Sector and Competitors
1st jan.Capitalization (M$)
L'ORÉAL-5.54%122 662
KAO CORP2.16%36 258
SHISEIDO COMPANY, LIMITED16.44%23 985
AMOREPACIFIC CORP--.--%16 863
COTY6.84%15 927
KOSE CORPORATION12.95%11 172