France-based L'Oreal SA (LRLCY.PK) Monday reported a higher profit for the full year 2011 mainly on strong demand for its beauty and cosmetics brands in emerging markets like Latin America and Asia Pacific, and a modest growth in North America.
Moving forward, the world's largest cosmetics company detailed an upbeat outlook for 2012, anticipating new markets to lead the fray among its geographies.
L'Oreal reported 2011 net profit after non-controlling interests of 2.44 billion euros or 4.08 euro per share, up from 2.24 billion euros or 3.79 euro per share last year.
Excluding items, profit after non-controlling interests rose 8.9 percent to 2.58 billion euros from last year. On a per share basis, earnings grew 7.8 percent to 4.32 euros from 4.01 euros last year.
Group sales for 2011 rose 4.3 percent to 20.34 billion euros from last year. On a like-for-like basis, sales grew 5.1 percent. For the fourth quarter alone, sales improved 5.6 percent to 5.25 billion euros, with like-for-like sales up 5.1 percent.
Commenting on the results, CEO Jean-Paul Agon said, "2011 was a solid year of development, which has made the group even stronger. In a cosmetics market whose global trend was favorable, L'Oreal achieved sustained sales growth and confirmed its position as the world leader in beauty..."
Cosmetic sales for the year grew 4 percent from last year to 18.87 billion euros. On a same-store basis, sales rose 5 percent.
Among regions, cosmetic sales from Western Europe edged up 0.9 percent from last year, while North America gained 2.7 percent. Nevertheless, emerging markets stole the show with Asia Pacific sales rising 13.4 percent from last year to 3.6 billion euros, and Latin America up 10.8 percent to 1.68 billion euros.
Eastern Europe meanwhile slid 4.4 percent from last year, while Africa & Middle East grew 4.1 percent.
The group's full year gross margin improved 40 basis points to 71.2 percent from last year, while operating margin rose 50 basis points to 16.2 percent.
L'Oreal said its Board has planned to approve a dividend of 2 euros per share for 2012, an increase of 11 percent from 2011. The dividend will be paid on May 3, 2012 (ex-dividend date April 27, 2012).
The company also said that in 2012, shareholders who have continually held their shares in registered form for over 2 years will receive a loyalty bonus of 10 percent.
LRLCY.PK is trading at $21.70, up $0.31 or 1.45%.
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