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By
Reuters
Published
Jul 31, 2009
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L'Oreal says emerging markets picked up in second quarter

By
Reuters
Published
Jul 31, 2009

PARIS, July 30 (Reuters) - L'Oreal (OREP.PA) sees business improving during the rest of the year after posting a 2.1 percent drop in comparable second-quarter sales, the French beauty products giant said on Thursday 30 July.


L'Oréal

The group behind Garnier hair products, Lancome and Vichy creams also said trading in emerging markets had improved during the second quarter.

"India is accelerating, China and Brazil are maintaining their strong dynamism, Mexico is recovering and the situation in Russia is improving," Chief Executive Jean-Paul Agon said in a statement.

L'Oreal generated revenues of 4.44 billion euros for the three months to June 30, in line with expectations of 4.4 billion euros based on a Reuters poll of 10 analysts.

Analysts forecast a comparable drop in second-quarter sales of 2.4 percent. On a reported basis, revenues were up 2.6 percent.

Revenues from luxury products, which suffered a 17.5 percent drop during the first quarter on a like-for-like basis, fell 8.3 percent during the second quarter.

"The market context is still negative but the distributor inventory reduction effect is clearly less pronounced than in the first quarter," the group said.

Consumer products, L'Oreal's biggest division, rose 0.9 percent on a comparable basis during the period.

The shares, which have lost 6.5 percent since the beginning of the year, closed up 1.69 percent at 58.25 euros.

(Reporting by Astrid Wendlandt; Editing by David Cowell)

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