2011 Annual Report: L'oreal

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As a subsidiary, the Body Shop does not reveal who its financial officers are, nor does the company reveal the practices that it uses to hedge its foreign exchange rate risk. It is not known if the company deals with its risk at the company level, of if this function has been transferred to the group level since L'Oreal took over. Christian Mulliez is the Executive Vice-President of Administration and Finance for L'Oreal. According to his biography on the company's website (2012), he graduated from ESSEC Business School outside of Paris in 1982. He joined the pharmaceutical industry in 1984 and became an Executive VP Controller and Information Systems at Sanofi-Synthélabo, before being promoted to Executive VP, Finance in 2000. He joined L'Oreal in 2002 and in 2003 was promoted to his current position. In the 2011 Annual Report, L'Oreal outlines how it deals with foreign exchange rate risk. The company operates globally, and therefore has significant foreign currency exposures. On page 132, the company outlines how it deals with these. As with many companies, L'Oreal hedges some of its foreign exchange rate risk. The company hedges at the end of each fiscal year the exposures that it anticipates for the coming year. The company notes that is does this "using derivatives based on operating budgets in each subsidiary" and presumable that applies to the Body Shop as well. The operating budgets are used to analyze the exchange rate risks that the company faces.
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