BOP News – Blog on Perfume News

L’Oreal SA, the world’s largest cosmetic maker, said that their first-half profit rose 6.8 percent, the slowest growth in three years, as European and U.S shoppers reduced their spending on skin care products, perfumes and other cosmetics.

The Paris-based firm said that their net income in the six months through June climbed to 1.26 billion Euros from 1.18 billion Euros a year earlier. The maker of Maybelline makeup and Lancome perfume last month reported the slowest quarterly growth rate in three years and reduced their sales target. Profit of the company, as a percentage of sales, widened by 0.4 percentage points to 17.3 percent during this period.

In a bid to compensate for a weaker dollar and slowing demand in both Western Europe and the U.S, L’Oreal has expanded in the emerging markets, from Russia to China.

Source

The maker of Calvin Klein and Davidoff scents, Coty is seeking acquisitions to expand their business. They are aiming at an increase of annual sales from $3.3 billion in 2007 to $5 billion in 2010.

The company had already acquired the fragrance arm of the consumer goods giant Unilever for a minimum cash sum of $800 million. Perfume division of Coty generated 82 percent of Coty’s revenue last year, while the make-up accounted for 15 percent and skincare products generated the remaining 3 percent.

Coty also makes Lancaster cosmetics and Rimmel make-up and they are one of the several parties interested in buying French cosmetics company Clarins, along with L’Oreal, Estee Lauder and Procter & Gamble.

Source: Forbes