8 billion while the market was 2 billion

Jean-Paul Agon, CEO of l ' Oréal, tried yesterday to convince the markets that, after 18 months of crisis, his group had put in place all the levers for a restart of the growth in 2010. Yesterday, the title of the number one global cosmetics however fell by 4.65 of the Paris stock exchange, one of the strongest setbacks to the meeting. Investors were disappointed after the announcement Monday evening of a decline in results for the second consecutive year. In 2009, the group saw its net profit decline by 8, to EUR 1.8 billion, while the market was 2 billion. In addition, sales in the fourth quarter declined by 3.5 in raw data ( 1.5 in comparable data), from the rebound expected. Société Générale analysts say "a little concerned by the fact that the increase in the advertising budget is not translated by an acceleration of the sales in the fourth quarter, particularly in Western Europe and North America". Chevreux note that "sales were below expectations, but the operating margin is consistent and of good quality".

"2009 was a year hinge, the market for cosmetics has stopped, like l ' Oréal, but this is behind us," provides Jean-Paul Agon. About the first months of 2010, the leader argued that his group "should in the first quarter know sensitive acceleration", without more, said while he put on an increase of 3 of the world market of cosmetics in 2010, compared to 1 last year.

Industrial restructuring

This stimulus, l ' Oréal will support it on a change of strategy. Habs champion aims 1 billion new consumers in emerging countries in the next 10 years, doubling from its existing clients in the world. These new markets are the only ones whose sales grew in 2009 ( 7.2 on a comparable), "we were trying to push our sales in Europe or the United States." Today, with China, the India, we have a fantastic opportunity for extensive penetration of the markets. "The weight of these new countries increased from 8 in 1990 to 33 per cent last year. The objective is that they represent half of the turnover by 2020, with the conquest of new consumers in Ukraine, Egypt, South Africa... "It is now that this failover is." "Within two or three years, sales in these countries will be higher than those in Western Europe," resumes Jean-Paul Agon. Already, the sales of the consumer division (Garnier, l ' Oréal...), which will serve as a Scout to open these markets grew last year by 24 in China and 32 in India. The group will also push the internationalisation of its brands sold in pharmacies, Vichy, La Roche Posay, whose turnover is realized to 66 in Western Europe.

This change is accompanied by industrial restructuring with the closure of factories (Spain, Monaco), the reorganization of l ' Oréal in the United States, Yves Saint Laurent beauty and Body Shop (300 jobs deleted), representing a decrease of 5 of the workforce out of a total of 64.600 positions. No further action is planned this year.