By Giulia Petroni


L'Oreal's shares rose on Friday after the company reported a strong beat in third-quarter sales across the board, suggesting operating leverage would more than compensate for cost inflation.

The French cosmetics and consumer-products company's quarterly sales were up 13.1% organically, compared to consensus expectations of 7.6%. The beat was driven by the active, professional and luxe divisions.

At 0725GMT, shares trade 6.5% higher at EUR393.30.

According to analysts at Citi, the quarterly performance shows the company is able to rebalance its growth drivers geographically, with a broadbase expansion category-wise that should lead to a volume/mix run-rate in the mid teens by the end of the year.

The bank forecasts L'Oreal's organic sales growth at 9.4% in the fourth quarter and 15.6% in the full year, with margin at 19.6%.

"We expect a clear positive share price reaction, led by consensus earnings upgrades and lack of inflation-related margin worries given the operating leverage," says Citi.


Write to Giulia Petroni at


(END) Dow Jones Newswires

October 22, 2021 03:43 ET (07:43 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Historical Stock Chart
From Dec 2021 to Jan 2022 Click Here for more Loreal (PK) Charts.
Historical Stock Chart
From Jan 2021 to Jan 2022 Click Here for more Loreal (PK) Charts.