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11
ECONOMIC AFFAIRS
A dynamic and
sustainable growth policy
L’Oréal is the world cosmetics leader in a growing market. It is dedicated to a single
business activity, and has achieved strong growth for many years. The group has
demonstrated that it is possible to combine financial success and social commitment
while implementing a strict environmental policy.
• DIVIDEND put forward at the Annual General Meeting on
29 April 2004:
0.73 euro, up 14.1% compared with 2003.
• WORKFORCE: over 50,000 employees of approximately
100 different nationalities at 31 December 2003.
• WORLDWIDE PRESENCE:
the group is active in 130 countries and has 290 subsidiaries.
• INDUSTRIAL PRESENCE:
the group has 42 factories worldwide.
• INVESTMENT IN RESEARCH:
·3% of turnover devoted to research,
Almost 2,900 scientists engaged in cosmetics and
dermatological research,
·515 patents registered in 2003.
A growing market
Since 1990, average annual growth in cosmetics has equalled
twice the average growth of global GNP. This growth is continuing
in developed countries, thanks to new demands and new
markets, and it has been stiking in countries that have recently
converted to the market economy.
A sustainable growth strategy
L’Oréal considers internal growth to be the main focus of its
development. The group ensures healthy long-term geographic
and sector-based balance for its brands and increases the rate of
its international expansion through a highly selective acquisition
policy. As a result, L’Oréal has enjoyed double-digit growth
in earnings for many years.
L’Oréal manufactures more than 94% of its products. Control
over its processes is an essential strategic issue and proof of
its civic responsibility. L’Oréal looks to the growth of new markets,
especially in developing regions such as South East Asia.
However, the group’s growth is never at the expense of a
responsible attitude: by manufacturing locally as soon as practically
possible, it contributes to local economic development
and applies the principles outlined in its Code of Business
Ethics.