L’Oréal: Preliminary 1998 Consolidated Results
Sales: Up 9.1%
Pre-Tax Profit: Up 13.1%
Consolidated Net Profit Before Capital Gains And Losses, After Minority Interests: Up 12.1% Group

At its meeting on 24 February 1999, chaired by Mr. Lindsay OWEN-JONES, L'OREAL's Chairman and CEO, the Board of Directors reviewed the preliminary consolidated financial statements for 1998.

Consolidated sales for 1998 totalled FF 75.4 billion (Euros 11.5 billion), an increase of 9.1% on 1997.

Excluding the 2.1% negative exchange rate impact, year-on-year growth stood at 11.2%.

On a like-for-like basis, the sales growth of L'ORÉAL amounted to 10%, excluding 1.2% for newly consolidated subsidiaries.

 
Sales (in millions)
Growth on published figures
Growth excluding exchange rate impact
Cosmetics
in FF
in Euros
 
61,541
9,382
 
+ 9,6 %
 
 
+ 11,9 %
 
Dermatology (1)
in FF
in Euros
 
991
151
 
+ 24.9 %
 
 
+ 25.3 %
 
Pharmaceuticals
in FF
in Euros
 
12,530
1,910
 
+ 6.8 %
 
 
+ 8.0 %
 
(1) L'Oréal's interest, i.e. 50%

Profit on ordinary activities before taxation and employee profit sharing increased by 13.1% to FF 8,780 million (Euros 1.3 billion).

Performances by sector were as follows:

 
 
Cosmetics
Dermatology (1)
Pharmaceuticals
 
 
(in millions)
Growth
(in millions)
Growth
(in millions)
Growth
Profit before taxation and employee profit sharing
>in FF
6,478
10.2 %
152
55.5 %
2,081
18.8 %
in Euros
988
 
23
 
317
 
(1) L'Oréal's interest, i.e. 50%

The Group's tax charge has increased by 15.4%.

Net profit before capital gains and losses, after minority interests, which is used to calculate earnings per share, is forecast at FF 4,714 million (Euros 718 million), a 12.1% rise.

The Board of Directors will verify the preliminary accounts in liaison with the Statutory Auditors. The accounts will be certified on 7 April 1999.