World’s biggest cosmetic company reports that their market share for western Europe shrank 6.3 percent and North America 0.8 percent but on the positive side Asia grew at an impressive 12.6 percent, Eastern Europe at 11.3 percent and Latin America with 11.2 percent.
Net income declined to 1.79 billion ($2.44 billion), or 3.07 a share, from 1.95 billion or 3.30 a year earlier.
“After a difficult start to the year due to a contraction in sell-out and drastic inventory reduction by the trade, the cosmetics market has gradually improved and ended up slightly positive,” said L’Oreal CEO Jean-Paul Agon in a press release.
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U.S. and European recession forced the consumers to cut back on expenses as company recorded a 3.5 % fall in fourth quarter sales. The personal care product manufacturer’s operating profit as percentage of sales fell across all of L’Oreal’s geographic zones as the company invested into advertising and research.
French company L’Oreal pledged to improve turnover and earnings in 2010 when posting fourth-quarter sales below forecasts, particularly luxury products such as Yves Saint Laurent make-up and Lancome creams. The fourth quarter sales are disappointing particularly in luxury and somewhat in professional products but consumer goods sales were a little bit better than expected. Company believes that it has emerged stronger from 2009 and has prepared itself well for a return to sales and results growth in 2010.