Gloom In Comestic Industry

Last year, the cosmetics business is still addressed her beauty. Then, L'Oreal SA, Estee Lauder and Procter & Gamble Beauty unit (P & G) also believes this year appear attractive.

Yesterday, L'Oreal reported operating profit during the year 2012 rose 12% from a year earlier to € 3.7 billion (U.S. $ 4.96 billion). Sustaining this growth, achievement in the last quarter of last year, the increase in sales of 5.3%.

"Revenue growth exceeded industry achievement for reaching the target in new markets, such as China could be the largest source of income," said Chairman and President Director (CEO) of L'Oreal, Jean-Paul Agon. He was in an interview with Radio Classique also said, considering the acquisition this year.

During the year 2012, L'Oreal net profit grew 17% to € 2.87 billion, and sales increased 10% to € 22.5 billion. Active biggest sales growth recorded, the smallest unit of L'Oreal is 7.1%. While consumer products grew 5.8%, Body Shop chain sales rose 4.1%, and up 0.9% dermatology business.

L'Oreal shares rose to the highest in 2.5 years on the Paris stock exchange, post delivered ready to exceed the growth of the cosmetics market in 2013. The company also said it planned to repurchase (buyback) of € 500 million in mid-year.

Estée Lauder and P & G

Competitors, Estée Lauder Companies Inc. also recorded growth. Sales for the second quarter ended December 31, 2013 increased 7% to $ 2.93 billion. While net income grew 14% in the three-month period is a U.S. $ 457 million.

Fabrizio Freda, President and CEO of Estée Lauder, be sure to print a larger growth in the remainder of fiscal 2013 driven efficiency, marketing, innovation, and maintaining product market preferred. "We expect solid growth in the United States (U.S.), many developing countries and e-commerce," said Freda. He is targeting sales growth up 6% -7%.

Skin and body care business is also one of the biggest contributors of P & G. In financial year 2012, beauty products like Olay, Head & Shoulder, Pantene, SK-II accounted for 24% of total sales in 2012, is behind the fabric and home care business which contributed 32%.

Sales of P & G beauty products in 2012 increased 2% to U.S. $ 20.3 billion. However, net income decreased 1% due to margin decline.