L'Oreal expects to outperform cosmetics market this year
today Apr 18, 2016
French cosmetics company L'Oreal pledged on Monday to outperform the market in 2016 and confirmed its ambition to achieve another year of sales and profit growth after first-quarter sales rose than expected.
The maker of Garnier shampoo and Maybelline makeup reported a stronger than expected 4.2 percent rise in like-for-like first-quarter revenue on Monday, helped by sales its consumer products division.
During a call with analysts, L'Oreal said overall 2016 results should be stronger than its first-quarter figures and it predicted the cosmetics market as a whole would grow by about 3.5 percent this year.
It said growth in its consumer products accelerated in North America and that it won market share in Asia, Pacific, Eastern Europe and Africa, Middle East. However, it said France was a "difficult market".
The division's results helped the overall rise in comparable revenue beat the consensus forecast for a 3.4 percent rise.
"We are confirming our ambition of achieving another year of sales and profit growth," Chief Executive Officer Jean-Paul Agon said in a statement.
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