Strong increase in half-year net profit : +22.5%

Main half-year indicators
in millions of euros
At 30 June 99 At 30 June 00 Growth
Consolidated sales 5,372.5 6,149.9 +14.5%
Operating profit
569.2 (1) 690.2 +21.3%
Adjusted operating profit (2) 562.4 (1) 661.9 +17.7%
Pre-tax profit of fully consolidated companies
513.3 (1) 601.7 +17.2%
Net profit of fully consolidated companies 316.5 377.6 +19.3%
Group's share of net profit of associated companies 66.7 91.0 +36.5%
Net profit before capital gains and losses, after minority interests
379.5 464.9 +22.5%
(1) The new accounting standards applied since 1st January, 2000 recommend that employee profit-sharing should be recorded under "personnel costs". To make the figures comparable, the 1999 figures have been adjusted by applying the same method.
(2) Adjusted for exchange rate fluctuations
The consolidated sales of the group up to 30th June, 2000 amounted to Euros 6.15 billion (FF 40.33 billion), a 14.5% increase based on published figures or 8.2% excluding currency effects.

Good performance in margins

The group's two sectors, cosmetics and dermatology, achieved improved operating margins.

Adjusted operating profit

30 June 1999 % of sales 30 June 2000 % of sales Increase
Cosmetics Euros 541.4 m 10.3% Euros 631.2 m 10,5% +16.6%
Dermatology Euros 24.7 m 23.9% Euros 32.9 m 28,1% +33.2%
Consolidated total Euros 562.4 m 10.5% Euros 662 m 10,8% +17.7%

Strong profit growth for associated companies

Profit for associated companies improved by 36.5%.

As L'OREAL consolidates 19.57% of SANOFI-SYNTHELABO, the group's share amounted to Euros 85.2 m. This can be compared to Euros 62 m, corresponding to 56.64% of SYNTHELABO consolidated by L'OREAL in the first half of 1999, and represents an increase of 37.3%.

Outlook for 2000 as a whole

On the publication of these figures, Mr Lindsay OWEN-JONES, Chairman and Chief Executive Officer of LÂ’OREAL, commented: "After the excellent first-half results and in view of the strong growth prospects for the second half, the annual results excluding acquisitions should reflect an increase broadly in line with that achieved in the first half."

The acquisitions of KIEHL'S, MATRIX and CARSON have now been finalised and will be consolidated in the second half of 2000.

For the year as a whole, these acquisitions should contribute an extra two percentage points to sales growth. In profit terms, the impact of the acquisitions is likely to be slightly negative in 2000, before becoming positive from 2001 onwards.

The accounts for the first half of 2000 will be finalised on 28th September, 2000.

Interim report for the six months ended 30th June 2000 (B.A.L.O)