L'Oreal Net Profit Jumps on Double-Digit Growth in Luxe, Cosmetics

By Patrick Costello

L'Oreal SA (OR.FR) said Thursday that net profit for 2018 rose 8.8% in 2018, as the company saw double-digit growth in its Luxe and Active Cosmetics divisions for the year.

The French cosmetics and consumer-products company said net profit was 3.89 billion euros ($4.43 billion), compared with EUR3.58 billion the previous year. Analysts expected the company to post a net profit of EUR4 billion, according to a FactSet-compiled consensus.

Sales rose 7.1% on a like-for-like basis to EUR26.9 billion, making 2018 the company's best year of sales growth since 2007, L'Oreal said.

Revenue in the company's Luxe division was up 14.4% at EUR9.37 billion, and sales in the Active Cosmetics Division increased 11.9% to EUR2.28 billion.

Earnings per share rose 6.5% to EUR7.08, L'Oreal said.

The company said it would propose a dividend of EUR3.85 per share, an 8.5% increase from last year's dividend, to be paid on April 30.

L'Oreal Chief Executive Jean-Paul Agon said the company aims to outperform the beauty market in 2019, achieving another year of growth in both sales and profits.

The company also plans to extent the tenure of board member Sophie Bellon for four years and propose the appointment of Fabienne Dulac as a new independent director.

Write to Patrick Costello at [e-mail].

(END) Dow Jones Newswires

February 07, 2019 13:10 ET (18:10 GMT)

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