But trading conditions in the first half of the year were set to be difficult, it warned.

Chief executive Jean-Paul Agon, commenting on the company's 2008 results, said L'Oreal planned to impose a hiring freeze and gradually to reduce its staff, which currently numbers 67,600 worldwide, through the closure of some facilities.

In addition, cheaper products will be launched in light of the prevailing economic crisis.

After having to lower its growth projections for 2008, the group is "more cautious this year," when it expects "a very difficult climate, particularly in the first quarter and even through the first half," Agon told a press conference.

"The world cosmetics market should remain positive and we hope to be able to post higher growth (than the market)," he said, adding that "what is difficult is to know by how much."