L'Oreal (OR) dropped to the bottom of the Paris market on Friday as investors digested a potential sale of the Body Shop and full-year earnings that were in line with expectations.
The French cosmetics giant's stock was down 2.35% at 11:00 a.m. GMT in Paris to change hands at €169.70 each, sending it to the bottom of the CAC 40, trimming the three month gain to 8.5%.
The company reported group sales of €25.84 billion ($27.5 billion) for the full year to the end of December 2016, up 4.8% on a like-for-like basis, the company announced in its full-year earnings released on Thursday after markets closed in Paris. This was in line with expectations from analysts surveyed by FactSet.
L'Oreal was boosted by growth in its Luxe division, whose brands include Lancome, Kiehls and Urban Decay, which saw like-for-like sales up 6.9% in the year.
"The division is outperforming its market and has been further strengthened by the acquisition of two new brands: Atelier Cologne and IT Cosmetics," the company said.
The cosmetics group's Active division, whose brands include Vichy and La Roche-Posay, experienced like-for-like growth of 5.7%.
In January it bought three skincare lines from Valeant Pharmaceuticals (VRX) for $1.3 billion in a bid to expand its skincare portfolio, which will be added to the Active division.
Net profit dropped to €3.11 billion in 2016 from €3.3 billion the previous year because of two impairment charges in the first half of the year.