L’Oréal is celebrating a record operating margin for fiscal 2016 as the French beauty giant released its results for the financial year. Operating profit reached €4.54 billion, representing 17.6 percent of sales for fiscal 2016.
Sales were up 2.3 percent based on reported figures, or 5.1 percent at constant exchange rates and 4.7 percent like-for-like to €25.84 billion.
“L’Oréal achieved another good year, with significant growth in sales and robust profits,” said Jean-Paul Agon, Chairman and CEO. “All in all, the fundamentals of L’Oréal are unique advantages in the bright new world of beauty that is emerging: clearly defined mission and strategy, highly engaged expert teams, a global flotilla of emblematic brands, a long-haul investment in research and innovation, a critical engagement in digital, a unique, flexible and agile organisation, and a strong entrepreneurial culture.”
All divisions recorded sales growth, especially L’Oréal Luxe, which is ‘significantly strengthening its positions’. The Active Cosmetics Division also performed well, winning market share around the world and the Consumer Products Division outperformed the market.
Geographically, the group strengthened its leadership in the US and Europe and recorded solid growth in new markets.
Agon confirmed that the group was considering the possible sale of The Body Shop, as reported by Global Cosmetics News last week, stating that, following the acquisition of IT Cosmetics and the purchase of CeraVe that is currently in progress, ‘it has decided to explore all strategic options regarding The Body Shop’s ownership’.