CLICHY (dpa-AFX) - L'Oreal Co (LRLCY.PK) on Thursday reported an increase in profit for the first half of 2015, driven by growth in North America and new markets, and favorable currency helping results.
The French cosmetics company said that on the back of comprehensive growth, it is making investments in the digital sphere and is poised for increased momentum in the second half.
L'Oreal reported first-half net profit of 1.88 billion euros or 3.34 euros per share, compared with 1.73 billion euros or 2.85 euros per share last year.
Excluding items, first-half adjusted earnings from continuing operations were 1.96 billion euros or 3.47 euros per share, compared with 1.77 billion euros or 2.92 euros per share a year ago.
L'Oreal's first-half sales rose 14.7 percent to 12.82 billion euros from 11.17 billion euros in the prior year.
L'Oreal noted that among the geographic zones, sales improved in Western Europe and North America. The new markets experienced solid momentum, excluding Brazil where the economic context is very unfavorable, it said.
In the first half, L'Oreal benefited from a 26 percent jump in sales in North America, and a 16.9 percent increase in new markets of Asia Pacific, Latin America, African and the Middle East, while Eastern Europe somewhat slackened. Sales in Western Europe were up 4.5.
On a like-for-like basis, L'Oreal's first-half sales were up 3.8 percent. Currency fluctuations had a positive impact of 9.7 percent on sales.
The company's margins were under some pressure: gross margin for the first half fell to 71.7 percent from 71.8 percent last year, and operating margin dropped to 18.1 percent from 18.2 percent.
For the second quarter of 2015, L'Oreal reported sales of 6.38 billion euros, up 15.3 percent from last year. On a like-for-like basis, sales were up 3.3 percent.
In Paris, the stock closed Thursday at 170.35 euros, up 0.45 euros or 0.26%.
Copyright RTT News/dpa-AFX