L’Oréal posts weak Q2 growth | Progresiv
L’Oreal has reported weaker-than-expected sales growth for its fiscal second quarter, hurt by lower demand in North America. 
For the three months to end-June, sales were up 9.8% to 7.26 billion euros, while like-for-like sales were up 6.8%. The group recorded double-digit growth at its Active Cosmetics (+16.3%) and Luxe (+15.5%) divisions, but overall results were impacted by mild growth at its Professional Products (+5.4%) and Consumer Products (+5.9%) units.
The results meant L’Oréal’s sales for the first half grew by 10.6% to 14.8 billion euros, with LFL sales up 7.3%. Sales in its New Markets rose by 19.3% to 6.8 billion euros (LFL +16.6%), by 6.8% to 3.8 billion euros in North America (LFL flat) and by 1.9% to 4.2 billion euros in Western Europe (LFL +1%).
CEO Jean-Paul Agon however sounded a positive note, saying that the LFL sales growth for the first half was its strongest in more than a decade. Agon added that while North America “is still being held back by the slowdown in make-up”, sales are increasing in the “difficult” Western Europe market and growing “very strongly” in New Markets.
He added: “In a volatile and contrasted environment, this good first half gives us confidence in our capacity to outperform the market in 2019 and achieve another year of growth in sales and profits.” (www.kamcity.com)
