L'Oreal sales exceed 20 billion euros; Bettencourt leaves board

Feb 13, 2012, 18:44 GMT

Paris - Sales at French cosmetics giant L'Oreal exceeded 20 billion euros in 2011, driven by strong demand for luxury goods and growth in emerging markets, the group announced Monday.

The group's board of directors separately announced that billionaire L'Oreal heiress Liliane Bettencourt, 89, was no longer a board member.

'L'Oreal's board of directors was informed today of the end of Liliane Bettencourt's tenure as board director,' L'Oreal said, expressing its 'profound gratitude' to Bettencourt 'for her active participation in the board's meetings.'

France's richest woman has been embroiled in a bitter feud with her daughter in recent years over whether she is still mentally fit to manage her fortune.

Last year, a judge placed her under the guardianship of her 25-year old grandson, Jean-Victor Meyers.

L'Oreal's board said Meyers would take her seat on the board.

Meanwhile, L'Oreal reported that turnover in 2011 grew 5.1 per cent on a like-for-like basis to 20.34 billion euros (26.86 billion dollars).

'In a cosmetics market whose global trend was favourable, L'Oreal achieved sustained sales growth and confirmed its position as the world leader in beauty,' chief executive Jean-Paul Agon said in a statement.

Net profits climbed 8.8 per cent over the year to 2.44 billion euros.

The group's luxury division, which includes Lancome and Giorgio Armani perfumes, had a particularly good year, with sales up 8.2 per cent.

Geographically, the main growth areas were the Middle East, Africa, Asia and Latin America.

'2012 will be a symbolic year, as the new markets are set to become the group's number one geographic zone,' Agon said.

L'Oreal's board has proposed to pay a dividend of 2 euros per share, an increase of 11 per cent on 2010.