L’Oréal : Preliminary 1999 Consolidated Results Sales: +12.1% Pro Forma Net Profit Before Capital Gains/Losses And After Minority Interests: +15.1% Group

The Board of Directors of L'OREAL met on February, 23rd, 2000 under the chairmanship of Mr Lindsay OWEN-JONES, Chairman and Chief Executive Officer, and was notified of the group's preliminary consolidated financial statements for 1999.

Main annual group indicators


  at 31 December 1998
pro forma
in millions of FF
in millions of euros
at 31 December 1999

in millions of FF
in millions of euros
Growth
as %
Consolidated
sales
62 892
9 588
70 520
10 751
+ 12,1
Operating profit 7 256
1 106
8 569
1 306
+ 18,1
Adjusted operating
profit *
7 341
1 119
8 333
1 270
+ 13,5
Profit on ordinary
pactivities
before taxation and employee profit sharing
6 613
1 008
7 576
1 155
+ 14,6
Net profit on ordinary
activities before capital gains/losses of fully consolidated companies
3 961
604
4 569
696
+ 15,3
Group's share of net
profits of associated companies
776
118
895
136
+ 15,3
Net profit before
capital gains/losses and after minority interests
4 714
719
5 428
827
+ 15,1
* including exchange gains and losses

The consolidated sales of L'OREAL worldwide amounted, in 1999, to FF 70.5 billion (EUR 10.7 billion). Sales growth compared with 1998 was 12.1% based on published pro forma figures, i.e. excluding Synthélabo which merged with Sanofi in 1999.

Sales growth amounted to 11.7%, excluding the 0.4% positive impact of currency fluctuations.

As there was a positive structural impact of 0.4% on L'OREAL sales due to the consolidation of cosmetics and dermatology subsidiaries on the American continent, like-for-like growth was +11.3% compared with 10.6% in 1998 excluding Synthélabo.

Consolidated profit on ordinary activities before taxation, employee profit sharing and capital gains/losses rose by 14.6% to FF 7,576 million (EUR 1.2 billion) on a pro forma basis.

The following performances were achieved in the group's main branches:
Main annual branches indicators


  Cosmetics Dermatology (1)
  in millions of FF
in millions of euros
Growth in millions of FF
in millions of euros
Growth
Sales 68 751
10 481
11,9 % 1 303
199
+ 31,6 %
Profit before
taxation and
employee profit sharing
7 326
1 117
+ 13,2 % 233
36
+ 53,6 %
(1) Group share, i.e. 50%

The group's tax charge has increased by 14.3%.

Net profit on ordinary activities before capital gains and losses and after minority interests, which is used to calculate earnings per share, is estimated at FF 5,428 million (EUR 827 million), up by 15.1%.

The Board of Directors is verifying these provisional accounts in liaison with the Statutory Auditors, and will certify them on April, 5th, 2000.

In other respects, the Board of Directors noted the resignation of Mr Pascal CASTRES SAINT MARTIN from his directorship. The Board expressed its warm thanks to Mr. Pascal CASTRES SAINT MARTIN and, following the Chairman's proposal, the Board decided to provisionally appoint Mr Michel SOMNOLET as a director. Mr Michel SOMNOLET has been Vice-President in charge of Administration and Finance since 1st January 2000.