NEW YORK — A diversified brand lineup and strength in emerging markets helped L’Oréal overcome softness in Europe and report fourth-quarter and full-year 2004 sales advances.
The France-based beauty company said fourth-quarter revenues rose 3.4 percent to 3.7 billion euros, or $4.8 billion at average exchange. The increase would have been 6 percent in constant currencies.
Sales of cosmetics in the quarter rose 3.8 percent on a reported basis to 3.6 billion euros, or $4.6 billion, which would have been an increase of 6.3 percent in constant currencies.
By region, quarterly sales were strongest in Eastern Europe, Asia and Latin America on a reported basis. Meanwhile, sales rose 1.3 percent in Western Europe to 1.7 billion euros, or $2.3 billion, on both a reported and like-for-like basis. In North America, sales increased 0.7 percent on a reported basis to 990 million euros, or $1.3 billion, which would have been a 9 percent rise in constant currencies.
L’Oréal said U.S. sales strengthened by the end of the year, thanks to the success of its Fructis hair care line. Worldwide, however, the luxury products category faced challenging sales comparisons due to major perfume launches in the end of 2003.
Looking to all of 2004, total revenues were 14.53 billion euros, or $18.1 billion, an increase of 3.6 percent on a reported basis or 6.2 percent in constant currencies. L’Oréal said the total negative impact of foreign exchange was 3.2 percent in 2004.
Cosmetics sales for the year were up 3.8 percent at 14.2 billion euros, or $17.7 billion on a reported basis. The increase would have been 6.3 percent excluding currency fluctuations.
The strongest region of the year was Eastern Europe, with a 27.3 percent rise in sales to 524 million euros, or $651.8 million.