Loreal 2011 Annual Report Download - page 76

74 REGISTRATION DOCUMENT − L’ORÉAL 2011
3Comments on the2011 nancialyear
The Group's business activities in 2011
Operating profit by branch and Division
2010 2011
€ millions % sales € millions % sales
By Operational Division
Professional Products 552 20.3% 579 20.6%
Consumer Products 1,765 18.5% 1,859 18.9%
L’Oréal Luxury 791 17.5% 926 19.3%
Active Cosmetics 278 20.1% 287 20.2%
Cosmetics Divisions total 3,385 18.7% 3,651 19.3%
Non-allocated(1) -513 -2.8% -546 -2.9%
Cosmetics branch total 2,872 15.8% 3,105 16.5%
The Body Shop 65 8.7% 68 8.9%
Dermatology branch(2) 119 19.8% 120 17.0%
Group 3,057 15.7% 3,293 16.2%
(1) Non-allocated = Central group expenses, fundamental research expenses, stock options and free grant of shares expenses and miscellaneous items.
As a % of cosmetics sales.
(2) Group share, i.e. 50%.
(3) Before non-allocated.
(4) Non-recurring items i nclude mainly capital gains and losses on long-term asset disposals, impairment of long-term assets, restructuring costs and
elements relating to identified operational incomes and expenses, non-recurring and significant regarding the consolidated performance. See note 10 of
the 2011 Consolidated Financial Statement on pages 109 to 110.
(5) Diluted net earnings per share excluding non-recurring items after non-controlling interests.
Once again this year and as in2010, all the Divisions achieved
growth in their operating profitability, particularly L’Oréal Luxury
at +180basis points.
The Body Shop improved its profitability in2011.
Finally, Galderma had to face competition from generics on two
major drugs,
Differin 0.1% and Loceryl .
Profitability by geographic zone
Operating profit
2010 2011
€ millions % sales € millions % sales
Western Europe 1,552 21.6% 1,513 20.9%
North America 709 16.5% 810 18.4%
New Markets 1,125 16.9% 1,328 18.4%
Cosmetics Zones total(3) 3,385 18.7% 3,651 19.3%
Profitability in Western Europe contracted slightly at 20.9%,
returning to its 2009 level.
The profitability figures in the North America and New Markets
zones once again increased substantially, with both reaching
18.4% of sales.
Net earnings per share(5): €4. 32
€ millions 2010 2011
Operating profit 3,057 3,293
Finance costs excluding dividends received -36 -25
Sanofi-Aventis dividends 284 295
Pre-tax profit excluding non-recurring items 3,305 3,563
Income tax excluding non-recurring items -932 -978
Minority interests -2.3 -2.5
Net profit excluding non-recurring items after minority interests(4) 2,371 2,583
EPS(5) (€) 4.01 4.32
Diluted average number of shares 591,392,449 597,633,103
Total finance costs have once again this year declined very
substantially, at 25.2million euros. This latest reduction is the result
of the large reduction in our average debt.
Dividends from Sanofi amounted to 295 million euros, an increase
of +4.2%.