Cosmetics giant posts soaring profit thanks to one-off sale of skin-care business
French cosmetics giant L'Oreal says the sale of a skin care subsidiary underpinned a 66 percent rise in profits last year, while sales in its key consumer products business fell amid a volatile economic environment.
The company behind Lancome cosmetics and the Body Shop retail chain reported a net profit of 4.91 billion euros ($5.6 billion) in 2014, from 2.96 billion euros a year earlier. The increase was due largely to a 2.1 billion-euro capital gain from its disposal of skin care company Galderma.
L'Oreal said sales rose 1.7 percent to 21.66 billion euros ($24.66 billion) despite a 1 percent drop in its consumer products unit that makes up about half of total revenue.
The company, which is 23 percent-owned by Nestle, said its luxury segment recorded 5.7 percent growth.