French cosmetics giant L’Oreal says the sale of a skin care subsidiary underpinned a 66 per cent rise in profits last year, while sales in its key consumer products business fell amid a volatile economic environment.

The company behind Lancome cosmetics and The Body Shop retail chain reported a net profit of 4.91 billion euros ($5.6 billion) in 2014, up from 2.96 billion euros a year earlier. L’Oreal has attributed its profit increase to a 2.1 billion-euro capital gain resulting from the disposal of skin care company Galderma.

L’Oreal said sales rose 1.7 per cent to 21.66 billion euros ($24.66 billion) despite a 1 per cent drop in its consumer products unit that makes up about half of total revenue.

The company, which is 23 per cent-owned by Nestle, said its luxury segment recorded 5.7 per cent growth.