L’Oreal (ENXTPA: OR) 1H18 Results: Confirming Resurgent Chinese Demand for Premium Products

Executive Summary

• L’Oréal reported strong underlying growth of 6.6% in 1H18, though currency effects dampened reported numbers and, so, profit gains.
• Asia-Pacific sales jumped by 22.0% on a comparable basis and management noted strong demand for L’Oréal Luxe products in China.
• For FY18, analysts expect the company to grow revenues by 2.0%, to €26.5 billion. Consensus calls for a 3.3% increase in EBIT and a 7.6% increase in statutory pretax profit in FY18.