L' Oréal's 13.5% profit rise led by success in emerging markets

Cosmetics giant L' Oréal has reported a 13.5% rise in annual profits as it continued to make inroads in new markets such as China. For 2003, net operating profit rose to €1.65bn from €1.46bn a year ago, ahead of forecasts.

Chairman Lindsay Owen-Jones said that the company's progress into emerging markets last year had been "spectacular". Profitability had been achieved despite an "exceptionally unfavorable economic and monetary environment," he added.

Overall revenue fell 1.8% to €14bn, which the company said was due to the appreciation of the euro against the dollar. Excluding currency effects, sales rose 7.1%. L' Oréal, whose brands include Lancome and Maybelline, sells half its products outside Europe.