Share Name Share Symbol Market Type
LOreal EU:OR Euronext Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -2.20 -0.59% 373.30 373.30 373.40 377.45 371.25 374.00 200,362 13:40:25

L'Oreal Shares Rise on 3Q Sales Beat, Outweighing Cost-Inflation Concerns

22/10/2021 8:58am

Dow Jones News

LOreal (EU:OR)
Historical Stock Chart

From Jul 2021 to Jan 2022

Click Here for more LOreal Charts.

By Giulia Petroni


L'Oreal's shares rose on Friday after the company reported a strong beat in third-quarter sales across the board, suggesting operating leverage would more than compensate for cost inflation.

The French cosmetics and consumer-products company's quarterly sales were up 13.1% organically, compared to consensus expectations of 7.6%. The beat was driven by the active, professional and luxe divisions.

At 0725GMT, shares trade 6.5% higher at EUR393.30.

According to analysts at Citi, the quarterly performance shows the company is able to rebalance its growth drivers geographically, with a broadbase expansion category-wise that should lead to a volume/mix run-rate in the mid teens by the end of the year.

The bank forecasts L'Oreal's organic sales growth at 9.4% in the fourth quarter and 15.6% in the full year, with margin at 19.6%.

"We expect a clear positive share price reaction, led by consensus earnings upgrades and lack of inflation-related margin worries given the operating leverage," says Citi.


Write to Giulia Petroni at giulia.petroni@wsj.com


(END) Dow Jones Newswires

October 22, 2021 03:43 ET (07:43 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

1 Year LOreal Chart

1 Year LOreal Chart

1 Month LOreal Chart

1 Month LOreal Chart
ADVFN Advertorial
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20220124 13:55:25