L’Oreal sees profits surge

L'Oreal sees profits surge
Daniel Oines

L'Oreal, the world's largest cosmetics maker, said on Tuesday its first half net profit rose 11.6 percent from a year earlier to €1.47 billion ($2.11 billion) and confirmed its forecasts for 2011.

“We reaffirm our ambition for 2011 to outperform the market and to improve group profitability,” chief executive Jean-Paul Agon said in a statement.  

He said earnings improved despite the rise in raw material costs.  

Operating profit in the six months to June was €1.70 billion, with operating margins at 16.8 percent, down from 17.3 percent in the same period last year due to increased investment and advertising costs.  

Sales were up 5.0 percent to €10.15 billion.  

The group said it had reinforced its position around the world, including North America, Latin America and Asia.

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