Cosmetics company L'Oréal saw its turnover growth shrink a little over 2 % in its first quarter because of slower American growth and averse exchange rates. Luckily for the company, other markets managed turnover growth.
Positive results over entire fiscal year
L'Oréal's entire turnover dropped 2.2 % to 5.64 billion euro in the first quarter of 2014, mainly because of negative exchange rate fluctuations and a slower American growth. If exchange rate fluctuations and acquisitions are taken out of the equation, turnover would have increased 3.5 %.
Western European turnover grew 2.8 % (ignoring exchange rate fluctuations and acquisitions), while Eastern European turnover grew for the first time in 6 years. North American like-for-like turnover dropped 0.6 % this quarter, the first drop since 2009's fourth quarter.
The French cosmetics firm is not worried in the slightest over the full-year performance: "We are pretty confident for the rest of the year and we expect our growth to get back on a solid base as soon as the next quarter", CEO Jean-Paul Agon told Bloomberg. He therefore expects L'Oréal to grow faster than the anticipated 3.5 to 4 % growth within the entire cosmetics market in 2014.