Sales: up 9.1%
Pre-tax profit: up 13.1%
Consolidated net profit before capital gains and losses,
after minority interests: up 12.1%


At its meeting on 24 February 1999, chaired by Mr. Lindsay OWEN-JONES, L'OREAL's Chairman and CEO, the Board of Directors reviewed the preliminary consolidated financial statements for 1998.

Consolidated sales for 1998 totalled FF 75.4 billion (Euros 11.5 billion), an increase of 9.1% on 1997.

Excluding the 2.1% negative exchange rate impact, year-on-year growth stood at 11.2%.

On a like-for-like basis, the sales growth of L'OREAL amounted to 10%, excluding 1.2% for newly consolidated subsidiaries.
Sales
(in millions)
Growth
on published figures
Growth
excluding exchange rate impact
Cosmetics in FF 61,541 + 9.6 % + 11.9 %
in Euros 9,382
Dermatology (1) in FF 991 + 24.9 % + 25.3 %
in Euros 151
Pharmaceuticals in FF 12,530 + 6.8 % + 8.0 %
in Euros 1,910
(1) L'OREAL's interest, i.e. 50
Profit on ordinary activities before taxation and employee profit sharing increased by 13.1% to FF 8,780 million (Euros 1.3 billion).

Performances by sector were as follows:
Profit before taxation
and employee profit sharing
Growth
Cosmetics
(in millions)
in FF 6,478 10.2 %
in Euros 988
Dermatology (1)
(in millions)
in FF 152 55.5 %
in Euros 23
Pharmaceuticals
(in millions)
in FF 2,081 18.8 %
in Euros 317
(1) L'OREAL's interest, i.e. 50%
The Group's tax charge has increased by 15.4%.

Net profit before capital gains and losses, after minority interests, which is used to calculate earnings per share, is forecast at FF 4,714 million (Euros 718 million), a 12.1% rise.

The Board of Directors will verify the preliminary accounts in liaison with the Statutory Auditors. The accounts will be certified on 7 April 1999.