PARIS — On the back of a strong fourth quarter, L’Oréal increased 2005 sales 6.5 percent to 14.53 billion euros, or $17.6 billion at current exchange rates, year-over-year.
Sales grew 4.8 percent on a like-for-like basis in the year.
The French beauty giant reported fourth-quarter sales for the period ended Dec. 31, 2005, rose 12.2 percent, or 5.7 percent at constant group structure and current exchange. The company did not break out exact sales figures for the quarter, but said currency fluctuations had a positive impact of 6.1 percent.
L’Oréal said the net impact of changes in consolidation added 0.2 percent to annual sales, mainly a result of the acquisition of Skinceuticals in June 2005.
Commenting on the sales turnout, L’Oréal chairman and chief executive officer Lindsay Owen-Jones said in a statement, “As we had hoped, the fourth quarter saw an acceleration of our sales growth. Western Europe returned to growth and shows a positive result for the full year. North America and the other regions of the world continued to advance at a rapid pace.”
By region, L’Oréal’s sales in Western Europe rose 0.1 percent to 6.74 billion euros, or $8.17 billion, in the year. In North America, sales increased 8.3 percent to 3.87 billion euros, or $4.69 billion. In the rest of the world, including Asia, Latin America, Eastern Europe and “other countries,” sales spiked 18.4 percent to 3.61 billion, or $4.37 billion.
“Furthermore, the strengthening of the main currencies against the euro led to a positive exchange rate effect in the fourth quarter,” continued Owen-Jones in the statement. “In view of these figures, we can confirm our targets for full-year 2005 results.”
As reported, L’Oréal’s full-year objectives included earnings-per-share growth of more than 10 percent.
The company’s results will be presented on Feb. 16.