First-half 1998 profit on ordinary activities before taxation is estimated at FF 4.07 billion, up by 14.2%.

Consolidated sales for the period ended 30 June 1998 amounted to FF 37.96 billion, up by 11.6% on published figures, or by 11.1% excluding the impact of exchange rate fluctuations compared to first-half 1997 when sales amounted to FF 34 billion.

During the first-half, L'OREAL benefited from a slight exchange rate surplus (+0.5%) and a 1.2% increase in group structure as a result of the consolidation over the first-half of new cosmetic, dermatological and pharmaceutical subsidiaries mainly in Western Europe.

Main first-half indicators

At 30 June 1997
(FF millions)
At 30 June 1998
(FF millions)
Growth (%)
Consolidated sales 34,029 37,958 + 11.6 %
of which: Cosmetics 27,723 31,071 + 12.1 %
  Dermatology 350 483 + 38 %
  Pharmaceuticals 5,749 6,223 + 8.2 %
Pre-tax profit on ordinary activities 3,565 4,070 + 14.2 %
of which: Cosmetics 2,642 2,961 + 12.1 %
  Dermatology 55 81 + 47.3 %
  Pharmaceuticals 850 1,002 + 17.9 %
The Cosmetics sector enjoyed sustained growth during the first six months 1998 in the main areas. Excluding exchange rate fluctuations, the growth breakdown is as follows:
  • Western Europe: +10.6%

  • North America: +12.2%

  • Rest of the World: +14.0%.

Outlook for 1998

In view of the difficulties experienced in Russia since late June 1998 and the recent slowdown in Latin America, first-half performances cannot be extrapolated over the entire year.

However, continued growth in Western Europe and in North America will allow the Group to meet its objective for 1998 of attaining double digit growth in consolidated profit before taxation.

Net profit before capital gains and losses, after minority interests, used for calculating Earnings Per Share, should show growth similar to that of the profit before taxation.