L'Oreal Says Sales Growth to Accelerate in H2

PARIS, France — French cosmetics group L'Oreal sees sales growth accelerating in the second half as demand in Western Europe and the United States improves.

The world's biggest cosmetics group on Thursday said positive currency movements in the first half helped it enjoy its strongest sales growth in twenty years in reported terms.

However, L'Oreal's like-for-like 3.6 percent year-on-year sales growth in the second quarter slightly undershot market expectations of 4 percent.

Its Armani and Yves Saint Laurent brands recorded double-digit first-half growth while its professional hair products unit saw a solid rebound helped by its L'Oreal Professionel and Redken brands.

"Thanks in particular to a rich innovation portfolio, prospects of rapid e-commerce growth and the continuing roll-out of recently acquired brands, we are projecting an acceleration in growth in the second half," L'Oreal CEO Jean-Paul Agon said in a statement.

L'Oreal, which makes Lancome cream and Garnier shampoo, achieved operating profit of 2.32 billion euros ($2.53 billion) in the first half, broadly in line with the average estimate in a Thomson Reuters I/B/E/S poll of 2.31 billion.

By Astrid Wendlandt; editor: Andrew Callus.