L´Oréal 2011 Summary: Sustained growth in sales -

Sales: 20.34 billion euros, +5.1% like-for-like*
Net earnings per share: +7.8%
Increase in dividend****: +11% at 2 euros

Commenting on the annual results, Mr Jean-Paul Agon, Chairman and Chief Executive Officer of LOréal, said: "2011 was a solid year of development, which has made the group even stronger. In a cosmetics market whose global trend was favourable, LOréal achieved sustained sales growth and confirmed its position as the world leader in beauty. All divisions are expanding. LOréal Luxury in particular posted a very good year, especially thanks to Lancôme, Giorgio Armani and Kiehls.
Internationalisation is continuing across all divisions. The group is pursuing its conquest of the New Markets, with Asia and Latin America leading the way, and is making clear progress in North America. 2012 will be a symbolic year, as the New Markets are set to become the groups number one geographic zone. These performances demonstrate the relevance of our strategic thrusts and provide further confirmation of the key role played by research, innovation and creativity in our industry. 2011 was also another year of solid construction for our operating profit. The strong growth in results reflects the virtuous dynamics set in motion: operational efficiency has advanced in all fields of activity, enabling us to prepare well for the future, and the profitability of the New Markets zone increased substantially. The good quality of these results means that we are more confident than ever in the groups ability to achieve sustainable and profitable growth. We are well equipped to succeed in our strategy of universalising beauty and to achieve another year of sales and profit growth in 2012."

Overall, operating profit came out at 3,292.6 million euros, representing growth of 7.7%, reflecting a very significant improvement in profitability compared with 2010, at +50 basis points.

Cosmetics sales

PROFESSIONAL PRODUCTS: In a generally sluggish market, the Professional Products Division achieved 2011 growth of +2.5% like-for-like and +3.6% based on reported figures. Growth based on constant exchange rates, including the impact of acquisitions, came out at +5.1%. Initiatives in hair colourants and haircare enabled the division to win market share in all zones.

CONSUMER PRODUCTS: The Consumer Products Division achieved growth of +4.5% like-for-like and +3.2% based on reported figures at end-2011. Maybelline posted another year of strong growth and LOréal Paris is accelerating.

LORÉAL LUXURY: Bolstered by a lively market trend and the dynamism of its major brands, LOréal Luxury recorded 2011 sales up by +8.2% like-for-like and +6.5% based on reported figures. In all regions, the division has major stand-out innovations, with Visionnaire from Lancôme taking pride of place.

ACTIVE COSMETICS: In 2011, the Active Cosmetics Division grew by +3.2% like-for-like and +2.6% based on reported figures. With strong dynamism in Latin America, the United States and Africa, Middle East, the division is strengthening its position as number one in the worldwide dermocosmetics market.

The Body Shop sales

In 2011, The Body Shop achieved solid sales growth at +4.2% like-for-like, with a sharp acceleration in the in the 4th quarter. Retail sales also increased by +3.8%. The Body Shop is further enhancing its militant approach to innovation, with launches including Brush with Fashion, a make-up collection created for young consumers, Earth lovers, a range of eco-designed, 100%-biodegradable shower gels, as well as White Musk Libertine, a fragrance based on animal-friendly musk and Community Fair Trade organic alcohol.

In 2011, The Body Shop achieved growth in Europe and North America and quickly expanded in the New Markets. The brand experienced strong growth in the Middle East, particularly in Saudi Arabia and Egypt, as well as in Asian countries such as India and Hong Kong, and in Eastern Europe. The brand now has 16 online stores and is continuing to grow at an accelerated rate in e-commerce. Finally, The Body Shop now has a robust presence in global Travel Retail outlets across 44 markets.

At the end of 2011, The Body Shop has a total of 2,748 stores, an addition of 143 since December 31, 2010.