L’Oréal: Pro Forma Net Profit Before Capital Gains/Losses: + 14.9% At 30 June 1999

Main half-year indicators

  at 30 June 1998
pro forma
in millions of FF
n millions of euros
at 30 June 1999

in millions of FF
n millions of euros
Growth
Consolidated sales 31 735
4 839
35 241
5 372
+ 11,0 %
Operating profit 3 325
507
3 851
587
+ 15,8 %
Adjusted operating profit * 3 320
506
3 806
580
+14,6 %
Profit on ordinary activities
before taxation, and
employee profit sharing
3 029
462
3 469
529
+ 14,5 %
Group's share of net
profits of associated companies
374
57
437
67
+ 17,0 %
Net profit before
capital gains/losses
and after minority interests
2 167
330
2 489
379
+ 14,9 %
* including exchange gains and losses

The pro forma expansion of the group reflects the Sanofi-Synthélabo merger approved by the AGMs held on 18 May 1999. Until 1998, Synthélabo was fully consolidated. For the first half of 1999, Synthélabo has been consolidated by the equity method.

The group's consolidated sales up to 30 June 1999 amounted to FF 35.24 billion (5.37 billion euros), representing pro forma growth of 11% in reported figures and 13.8% excluding monetary effects.

The Cosmetics sector achieved strong sales in the main geographic zones. Excluding monetary effects, sales growth amounted to 13.5%, with the following figures for main zones:

Western Europe + 11,8%
North America + 16,5%
Rest of the World + 15,6%


As the equity consolidation of Sanofi-Synthélabo came into effect on 1 July 1999, the pro forma figure for the group's share of net profits of associated companies included, in the 1st half of 1999, 56.64% of Synthélabo's profits, amounting to FF 407 million. This amount may be compared with Synthélabo's pro forma contribution, in the 1st half of 1998, of FF 350 million.

Outlook for 1999 as a whole


In a statement issued as the figures were published, Mr Lindsay OWEN-JONES, Chairman and Chief Executive Officer of the L'OREAL Group, declared : "Once again, we expect to achieve strong growth in profits at all levels for the year as a whole".

In point of fact, continuing good levels of business in Western Europe and North America suggest that for 1999 as a whole the growth in sales and in profit on ordinary activities before taxation and employee profit-sharing, and in net profit before capital gains/losses and minority interests (the measure of which earnings per share are based) should be rather close to the growth achieved in the 1st half of 1999.