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L’Oreal would be able to ‘resist’ a financial crisis, CEO says

L’Oreal would be able to ‘resist’ a financial crisis, CEO says

The world’s biggest beauty products company is not concerned about the ensuing ramifications of a recent global sell-off.

“Whatever happens, L’Oreal is a very solid company able to resist in any environment,” Jean-Paul Agon, L’Oreal CEO, told CNBC on Friday.

“I don’t wish that there is a crisis, but if there was one, or a difficult moment, we would be very ready to go through it,” he added.

Global stocks appeared on course to register their biggest weekly decline since the height of the euro zone crisis on Friday, after a slump on Wall Street in the previous session triggered a cascading market plunge.

Many investors believe the market turmoil over the past week is reflective of a long overdue pullback after substantial gains in 2017 and early 2018. The recent selling is also thought to have been exacerbated by expectations of higher U.S. interest rates.

L’Oreal reported stronger-than-expected earnings for the final three months of 2017 on Friday. The company posted a 5.5 percent rise for like-for-like sales during the fourth quarter, sending shares around 1 percent higher on Friday afternoon.

Meanwhile, the L’Oreal CEO said that if Nestle announced it was looking to sell its 23 percent stake in the cosmetics firm, L’Oreal would be prepared to buy it.

Speaking at a news conference shortly after the release of L’Oreal’s latest figures, Agon said: “If Nestle one day wants to sell, we are ready.”

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