L'Oréal Loses its Shine as Beauty Consumers Waver

02 September 2008

CLICHY, France: Beauty, it seems, takes a back seat when cash is hard to come by. The world's biggest cosmetics firm, L'Oréal, saw a lacklustre 6.6% rise in first half net profits to €1.26 billion ($1.84bn; £1.02bn), up from €1.18bn in the same year ago period.

Operating profit at the maker of the Garnier and Maybelline brands increased by a modest 3.4% to €1.5bn, as the company faces rising costs of raw materials.

Sales in Russia and China helped offset weaker performance in Western Europe and the USA.

The company's share price share price has slumped by nearly 30% since the beginning of the year over commodity costs and consumer spending concerns.

L'Oréal is, however, expected to up H2 marketing spend in anticipation of new products launched for the holiday season.

Data sourced from mad.co.uk; additional content by WARC staff