As of June 30, 2011, French firm L’Oreal posted sales growth of five per cent, whilst US-based Procter and Gamble delivered organic sales growth of four per cent.
Speaking of the current state of affairs at L’Oreal at a news conference in New York, CEO Jean-Paul Agon said there had not been a slowdown of sales in recent months despite the debt crisis in Europe and the US, and that sales of its most expensive items were actually rising the most.
No major changes in beauty consumption
"For the beauty consumption, we are not seeing any major shift so far," Agon said about spending trends since June in the both the US and Europe; the company's biggest markets.
With sales of L’Oreal’s high-end products holding up the most, Agon also stated that he remains confident about the company’s full year performance, with quarterly results to be released in a little over three weeks.
Likewise, P&G president Bob McDonald also claimed that the current economic situation has not had a negative impact on sales for the consumer product firm, as he addressed shareholders at P&G’s annual meeting.
McDonald claimed P&G has done exceedingly well to post growth, despite commodity and energy cost increases, political unrest in the Middle East and North Africa, the tragic earthquake in Japan, as well as little or no market growth in developed markets.
There’s still work to do
"We know we have work left to do to deliver the growth you expect from P&G but we're making solid, reliable progress, and we have an even stronger foundation for growth in the years ahead," said McDonald.
“We're operating in a very tough economic environment with high degrees of uncertainty, but we've been through tough periods before, and we have always stayed focused on what must be done in the present while not losing sight of what it will take to keep growing in the future.”
McDonald cited four clear priorities for the year ahead: maintaining sales growth momentum, executing price increases with excellence, delivering high-quality operating profit growth and improving productivity in all aspects of the company.
P&G will issue its quarterly results on October 27, 2011.