12.639 billion Euros

+ 8.6% based on reported figures
+ 7.7% like-for-like


• The sales of the L’Oréal group, at September 30th 2007, amounted to 12.639 billion euros, an increase of +8.6% (based on reported figures).
Like-for-like, (i.e. based on a comparable structure and identical exchange rates) the increase in the groupÂ’s sales was +7.7%.
The net impact of changes in consolidation, mainly as a result of the acquisitions of The Body Shop, Sanoflore, Beauty Alliance, PureOlogy and MalyÂ’s West, amounted to + 4.1%. Over the full year 2007, the impact of these changes should amount to + 3.6%.
Currency fluctuations had a negative impact of - 3.2%. (at the exchange rate of September 30th, 2007, the impact would be - 3.3% for the whole of 2007).
Growth excluding exchange rate impact amounted to + 11.8%.

• Commenting on the figures, Mr Jean-Paul Agon, Chief Executive Officer of L'Oréal, said:
"The high 3rd quarter growth rate confirms the clear acceleration of sales recorded since the start of the year. The group's expansion reflects homogeneous growth in all our divisions.
From a geographic viewpoint, we are maintaining solid growth in Western Europe. As we had expected, the improvement in North America is gradual. And the very strong dynamism of the countries in the Rest of the World is continuing, particularly in Eastern Europe.
In view of the strong growth achieved in the first 9 months, we can confirm our like-for-like sales growth target bracket for 2007 of + 7% to + 8%. Although full-year negative exchange rate impact has increased, we are confirming our target of double-digit net earnings per share growth in 2007."

Sales by operational division and geographic zone

  Third quarter 2007 At September 30th 2007
  Growth   Growth
€m Like-for-like Reported €m Like-for-like Reported
By operational division
Professional Products 615.9 + 7.1% + 16.7% 1,769.4 + 7.1% + 10.7%
Consumer Products 2,013.1 + 8.0% + 5.8% 6,290.1 + 8.1% + 5.2%
Luxury Products 938.8 + 7.2% + 3.5% 2,772.1 + 6.9% + 2.9%
Active Cosmetics 268.3 + 9.4% + 11.0% 984.6 + 9.9% + 10.0%
Cosmetics total  3,848.9 + 7.6% + 7.0%  11,863.4 + 7.6% + 5.6%
By geographic zone
Western Europe 1,679.1 + 4.0% + 3.7% 5,479.3 + 3.8% + 3.6%
North America 1,037.9 + 4.3% + 3.9% 2,967.7 + 4.0% + 0.1%
Rest of the World, of which: 1,131.9 + 17.0% + 15.6% 3,416.5 + 18.3% + 14.8%
- Asia 380.2 + 13.8% + 8.1% 1,168.4 + 13.8% + 7.0%
- Latin America 292.1 + 13.6% + 11.0% 820.0 + 15.2% + 10.3%
- Eastern Europe 260.4 + 29.9% + 36.3% 815.9 + 29.9% + 35.4%
- Other countries 199.2 + 13.5% + 14.9% 612.2 + 17.4% + 13.7%
Cosmetics total 3,848.9 + 7.6% + 7.0% 11,863.4 + 7.6% + 5.6%
The Body Shop 180.2 + 5.6% + 4.8% 520.7 + 6.5% n.s.
Dermatology(1) 95.9 + 15.3% + 10.5% 255.1 + 12.0% + 6.8%
Group total 4,124.9 + 7.7% + 7.0% 12,639.2 + 7.7% + 8.6%
(1) Group share, i.e. 50 %

Cosmetics Branch. Sales trends by division and zone

• The Professional Products Division recorded a like-for-like growth rate of + 7.1%, substantially outperforming the market in all zones: in the major West European countries, North America, Japan and in the emerging countries.

- L’Oréal Professionnel is continuing its breakthrough in the seniors segment thanks to the success of two key product initiatives: Color Suprême hair colourant which is being rolled out worldwide, and the anti-ageing haircare range Age Densiforce.
- Redken has successfully launched its Fresh Curls range and has internationalised its Urban Experiment styling range.
- Matrix has accelerated its penetration outside the United States, particularly in Europe with the Biolage range.
- In the dynamic luxury hairdressing market, the Division is continuing to build a comprehensive offering to meet the needs of the most exclusive salons. In addition to the fast growth achieved by Kérastase with Age Recharge and Oléo Curl, the Division now includes the American brand PureOlogy acquired in May, and the newly created Shu Uemura Art of Hair range, whose launch in the United States and Europe is just beginning.

• The Consumer Products Division achieved a good 3rd quarter, driven by excellent performances in facial skincare and make-up, and its like-for-like growth rate at the end of September stands at + 8.1%. Growth in Western Europe has been confirmed. North America's recovery is continuing. Growth in the Rest of the World is very high, especially in Russia, China, India and the ASEAN countries.

- The major event in the third quarter was the successful launch of the facial skincare range Skin Genesis by L’Oréal Paris, which combines Pro-Xylane® and hyaluronic acid. Skin Genesis is strengthening the brand's position as world number 1 in the anti-ageing segment. Other major successes are the powdered mineral foundation Bare Naturale, the Men Expert Hydra-Energetic range, and Casting Crème Gloss hair colourant.
- The Garnier brand is continuing its global roll-out, and has scored good results up to the end of September. Skincare launches are proving successful all over the world, by adapting the offering in each case: UltraLift Deep Wrinkle A in Europe, Nutritioniste in the USA, Light Matte in India, and Skin Naturals Body in Russia. The skin cleansing range Garnier Pure is proving successful. In hair colourants, Garnier is achieving strong growth with Color Naturals in the emerging countries and Nutrisse in the developed countries.
- Maybelline New York launched its Define-A-Lash mascara in Europe, after the USA, and it is now becoming established as the number 1 mascara in very many countries. Maybelline foundations adapted to suit the main regions of the world have also been successful: Superstay 16-hour Silky Foundation in Europe, Lumifit in Asia, and White Stay in China.

• The Luxury Products Division achieved a like-for-like growth rate of + 6.9% in a dynamic global market. Growth was particularly dynamic in the emerging countries, such as China, Russia, Mexico and Dubai. Lastly, Lancôme was recently launched in India.

- The success of the new fragrances and the good performance of the existing portfolio have enabled the Division to bolster its position as world number 1 in prestige perfumes. The launch of Diesel Fuel for Life (for men and women) - which has won leading positions in all markets - is very promising. The fragrances Explorer by Ralph Lauren for men and Emporio Armani Diamonds for women have also made a good start in the United States, where they have just been launched. Hypnôse Homme by Lancôme and Attitude by Giorgio Armani are continuing to perform well at international level.
- Lancôme is strengthening its positions in anti-ageing skincare with Absolue Premium βx and the new line Rénergie Morpholift R.A.R.E. The brand is also asserting its leadership in mascara with Virtuôse.
- With the launch of its Premium range Armani Crema Nera, Giorgio Armani is furthering its strategy of creating a global beauty brand. Kiehl’s is completing its international network with the opening of several boutiques around the world. Shu Uemura is developing its positions with the help of its new Phyto Black Lift line with Pro-Xylane® and Face Architect foundation.

• The growth of Active Cosmetics is continuing with a strong like-for-like growth rate of + 9.9%, especially in facial skincare.

All the brands are making good advances, thanks to the lasting success of existing products and the positive impact of launches such as the skincare lines Aqualia Thermal by Vichy, and Substiane and Toleriane Facial Fluid from La Roche-Posay. Innéov sales are also growing strongly thanks to the launch of Innéov Cellulite.

Solid growth confirmed in Western Europe

With a like-for-like sales increase of + 3.8%, and a market that remains strong, growth is solid in Western Europe. Sales trends are extremely favourable in Great Britain and in Spain.

- The Professional Products Division turned in good performances in all the countries, particularly in Germany. The American brands Matrix and Redken are growing strongly, fulfilling their role as growth relays in Europe.
- The Consumer Products Division has outperformed the market in sell-through terms. In the haircare businesses, where L’Oréal Paris and Garnier hold very strong positions, sales growth remains positive, driven by the success in hair colourants of Casting Crème Gloss and Nutrisse. In skincare and make-up, the Division is growing significantly faster than the market, with double-digit growth at end-September. All the European countries have positive growth rates, with Spain, Switzerland, Sweden and Great Britain all performing particularly well.
- Growth in the Luxury Products Division is high, particularly in Great Britain and France. It has been galvanised by the advances made by the designer fragrance brands and the success of Diesel Fuel for Life. Shu Uemura and KiehlÂ’s are successfully continuing their brand roll-outs.
- For Active Cosmetics, the third quarter was notable for the rapid development of La Roche-Posay and the acceleration of the sales of Innéov, which is now number one on the European nutricosmetics market.

Gradual improvement in North America

In North America, sales growth was + 4.0% against a background of slightly slower market growth, with clear market share gains for the group.

- The Professional Products Division strengthened its number one position through 3 strategic moves. It first strengthened control of the distribution of its brands by continuing to reorganise their distribution with the integration of Beauty Alliance and MalyÂ’s West, professional distributors to hair salons. It also intensified its presence in the booming segment of the most exclusive salons, with the acquisition of PureOlogy and the launch of Shu Uemura Art of Hair. Lastly, the initiatives of its brands in hair colourants have enabled it to develop its positions in this market.
- The Consumer Products Division has continued to win market share by increasing sell-through twice as fast as the market, thanks to an excellent performance in make-up with the success of Bare Naturale and Infaillible Lip from L’Oréal Paris and Define-A-Lash from Maybelline, and in skincare following the launch of Nutritioniste by Garnier and Skin Genesis from L’Oréal Paris.
- The Luxury Products Division is strengthening its skincare positions thanks to the success of Absolue βx and Collaser Yeux and a good start for Rénergie Morpholift R.A.R.E. In fragrances, the Division has strengthened its number one position in the men's segment with the launch of Attitude by Giorgio Armani and Explorer by Ralph Lauren, while the launches of Diamonds from Emporio Armani and Diesel perfumes are very promising.
- The Active Cosmetics Division is continuing to roll out the Vichy and La Roche-Posay brands, and Skinceuticals is still growing strongly.

Strong dynamism in Rest of the World

With a like-for-like sales increase of +18.3%, the Rest of the World zone is continuing to produce very rapid growth.

The dynamism of the Asia Zone is continuing, with like-for-like growth of + 13.8% enabling the group to score major market share gains.
- In Japan, growth was slightly positive in line with the market. It is being driven by the strategic advances of the Professional Products Division, which has seen sales of its L’Oréal Professionnel and Kérastase brands grow rapidly. The success of L’Oréal Paris in haircare with Elsève is also contributing to sales growth.
- Asia excluding Japan is again proving buoyant at + 17.4%, reflecting good trends both in China and in the ASEAN countries.
- In China, L'Oréal Paris has become the number one beauty brand in its distribution universe, thanks to the success of Revitalift and Men Expert. The Luxury Products Division meanwhile is maintaining its leadership thanks to the success of Absolue and the Men’s range from Lancôme, the number one brand on the market, and Biotherm which is now number 6 on the market
- Growth in the ASEAN countries is strong, thanks in particular to the very good performance of the Consumer Products Division with its brands L’Oréal Paris and above all Garnier. In Thailand, where the group is making large market share gains, the growth rate of + 21.0% is bolstered by the success of Light skincare by Garnier, backed up by the successful launch of Elsève by L’Oréal Paris in the haircare segment.

With like-for-like growth of + 29.9%, the Eastern Europe zone is continuing to advance very rapidly, particularly in Russia, Ukraine and Croatia.
- The Professional Products Division has continued to expand strongly in all the countries concerned. Matrix is moving into a steadily increasing number of salons.
- The growth of the Consumer Products Division is being boosted by the scores in Russia, Romania and Ukraine, three countries in which the L'Oréal Paris and Garnier brands are quickly building up their positions in skincare and make-up.
- In a highly dynamic market context, the Luxury Products Division is continuing to see all its brands record strong sales growth in all the countries. It is also bolstered by the success of brands which have just been rolled out, such as KiehlÂ’s and Giorgio Armani make-up in Moscow.
- The Active Cosmetics Division is growing fast. La Roche-Posay, which is continuing its development in the major countries of this zone, has been launched in Romania, Slovenia and Croatia.

Sales in Latin America have grown by + 15.2% like-for-like.
- The group has recorded spectacular growth rates in Venezuela, Colombia, Argentina and Uruguay.
- In Brazil, the revamping of the Colorama nail varnish range has strengthened the brand's leadership in mass-market make-up. The Matrix brand is going from strength to strength throughout the country and the La Roche-Posay brand is maintaining its leadership in the dermocosmetics market.
- In Argentina, following the crisis that affected the country a few years ago, sales growth is now high at + 35.2% like-for-like, in an extremely dynamic market. The group was the main partner of the Worldwide Congress of Dermatology recently held in Buenos Aires, attended by more than 12,000 dermatologists from all over the world.
The Consumer Products Division is expanding rapidly, thanks to the successes scored by Elsève Volume Control from L’Oréal Paris and the Miss Ylang range by Maybelline in mass-market make-up. The Professional Products Division has strengthened its leadership with hairdressers, thanks to the success of Kérastase, and is extending distribution of the Redken brand. Active Cosmetics is driving home its advantage as the number one partner of pharmacists and dermatologists.

In the Other Countries, like-for-like sales growth amounted to + 17.4%. Growth is strong in India, particularly for Garnier in skincare and haircare. In the Maghreb and the Middle East, growth is also very solid thanks to haircare, skincare and make-up. In Australia, the successful launch of the Elvive range has enabled the Consumer Products Division to win market share. All the Divisions have seen their sales grow strongly in Dubai.

The Body Shop

Like-for-like sales growth at The Body Shop amounted to + 6.5%.
Retail sales (1) increased by + 9.3%. With a comparable store base (2), the increase in sales amounted to + 4.8%, after a very dynamic 3rd quarter.
Sales were particularly high in Japan and Hong Kong, and in several countries in Western Europe (Netherlands, Great Britain) and in the Rest of the World (South Africa, Baltic countries, United Arab Emirates).
New products are galvanising growth, particularly in make-up and skincare.
141 stores have been opened since October 1st 2006, making a total of 2,351 in 59 countries.

(1) Retail sales: total sales to consumers through all channels.
(2) Retail sales with a comparable store base: total sales to consumers by stores which operated continuously throughout the first-half period (January 1st to September 30th 2007) and the same period in 2006.


Galderma’s worldwide like-for-like sales have grown + 12.0% with balanced growth in the U.S. and the other regions of the world. In the U.S., the launch of Differin® 0.3%, an important new treatment option for acne patients, significantly accelerated the product’s global performance. Other core brands contributing to the Company’s strong double-digit growth were the Clobex® range for psoriasis, which continues to gain broad acceptance in the market, Cetaphil, Galderma’s therapeutic skin care product line and Loceryl®, the topical treatment for fungal nail infections. "This news release does not constitute an offer to sell, or a solicitation of an offer to buy, L'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers [also available in English on our Internet site www.loreal-finance.com].
This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."

Contacts at L'ORÉAL

Individual shareholders and market authorities
Mr Jean-Régis CAROF
Tel. : +

Financial analysts and institutional investors
Mrs Caroline MILLOT
Tel. : +

Tel. : +

Tél: +

For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers, and the Internet site for shareholders and investors, http://www.loreal-finance.com, or its mobile version on your cell phone, http://mobile.loreal-finance.com. Annex

L’Oréal group sales 2006/2007
(€ millions)
  2006 2007
First quarter
Cosmetics 3,872.3 4,030
The Body Shop - 169
Dermatology 66.1 69
First quarter total 3,938.4 4,268
Second quarter
Cosmetics 3,761.1 3,984
The Body Shop - 172
Dermatology 86.0 90
Second quarter total 3,847.1 4,246
First half
Cosmetics 7,633.4 8,014
The Body Shop - 341
Dermatology 152.1 159
First half total 7,785.5 8,514
Third quarter
Cosmetics 3,597.5 3,849
The Body Shop 171.9 180
Dermatology 86.8 96
Third quarter total 3,856.2 4,125
Nine months
Cosmetics 11,230.9 11,863
The Body Shop 171.9 521
Dermatology 238.9 255
Nine months total 11,641.7 12,639
Fourth quarter
Cosmetics 3,780.5
The Body Shop 263.0
Dermatology 104.8
Fourth quarter total 4,148.4
Full year
Cosmetics 15,011.4
The Body Shop 435.0
Dermatology 343.7
Full year total 15,790.1