L'Oreal FY13 Profit Up - Update

(RTTNews) - French cosmetics giant L'Oreal SA (LRLCY.PK), Monday reported an increase in profit for the full year, driven largely by improved demand for its products in North America and new markets.

L'Oreal's full-year profit rose to 2.96 billion euros or 4.87 euros per share from 2.87 billion euros or 4.74 euros per share a year ago. Adjusted earnings for the year improved to 5.13 euros per share from 4.91 euros per share.

Sales for 2013, grew 2.3 percent to 22.98 billion euros from 22.46 billion euros last year. On a like-for-like basis, revenues were up 5.0 percent.

Sales in North America rose 2.8 percent to 5.36 billion euros from last year. Sales from Western Europe inched up 1.1 percent to 7.48 billion euros. Sales from new markets grew 3.3 percent, reflecting increases across Asia Pacific, Eastern Europe, Latin America, and Africa and Middle East.

Cosmetic segment sales for the year climbed 2.4 percent, driven mainly by growth across consumer products, L'Oreal Luxe, and active cosmetics businesses.

Body Shop segment sales dropped 2.3 percent and dermatology was up 3.9 percent.

Gross margin, or gross profit as a percent of sales, improved to 71.3 percent from 70.7 percent last year.

Commenting on the results, Chief Executive Jean-Paul Agon said, "2013 was another year of robust growth for L'Oréal. The Group achieved sustained sales growth and, in a market whose expansion was more moderate in 2013, accelerated its outperformance versus the market. L'Oréal is strengthening its worldwide positions across all divisions and all geographic zones."

L'Oreal reported fourt-quarter sales of 5.76 billion euros, up 0.6 percent from last year. On a like-for-like basis, sales were up 5.4 percent.

The board has decided to propose to the Annual General Meeting for the payment of a dividend of 2.50 euros per share, an increase of 8.7 percent from last year.

LRLCY.PK is currently trading at $36.10, up $2.28 or 6.74%.