L’Oréal’s first half profit has been hit by rising costs of energy and raw materials. The maker of brands such as Maybelline and Lancome posted a 6.6% net profit in the six months to June 30.
Net profit for the world’s largest cosmetics group was €1.26bn (£1bn), slightly up from €1.18bn (£951m) reported in the corresponding 2007 period. Operating profit rose by 3.9% to €1.5bn (£1.2bn).
Analysts say growth in emerging markets such as Russia and China helped offset a weaker dollar and a slow down of consumer demand in Western Europe and the US.
Last month, the company posted sales growth of only 1.6% to €8.65bn (£6.97bn). As with its competitors, it is being hit by rising costs of ingredients required for its products such face creams, lipsticks and shampoos.
L’Oréal traditionally increases its advertising spend in the second half of the year to support the launch of new products in the lead up to Christmas.