The French cosmetics giant revealed last night that operating profit had risen 2% to €1.7bn (£1.5bn) compared to the same period the year before. Analysts said this figure was slightly below expectations although the higher spending on advertising and R&D behind the miss gave some reason for cheer.
“Operating margin growth was weak, although this negative growth can be entirely explained by increases in advertising and promotion spend as a percentage of sales and R&D spend as a percentage of sales so we should not complain too much,” said Bernstein analyst Andrew Wood.
L’Oreal announced like-for-like sales growth for the year half of 4.6% in July that was below consensus expectations of 5.9% growth.
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