L’Oreal reported second-quarter sales that trailed analysts’ estimates amid a deceleration in emerging markets.
Sales excluding acquisitions, disposals and currency swings grew 3.6 per cent, the world’s largest cosmetics maker said Thursday after European markets closed. Analysts predicted 4 per cent, according to the median of 23 estimates compiled by Bloomberg. Revenue rose to €6.38 billion, in line with the €6.42 billion estimate.
The maker of Maybelline New York mascara is benefiting from the euro’s slump after adverse currency shifts held back growth in the past two years. Like-for-like sales at the consumer unit that includes Garnier shampoo and Essie nail polish rose 2 per cent, accelerating from the first-quarter’s 1.7 per cent gain. That division is L’Oreal’s largest.
The consumer division “is still being held back by a sluggish European market,” Paris-based L’Oreal said in a statement. “We are projecting an acceleration in growth in the second half.”
Sales in Europe rose 2.6 per cent, while growth in new markets slowed to 5.1 percent in the quarter, below the 7.3 per cent expected by analysts.
The French company confirmed it expects to outperform the market in 2015 and increase sales and profit. First-half operating profit rose 14.5 per cent to €2.3 billion, meeting analysts’ estimates.
News by Bloomberg, edited by ESM
