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Beiersdorf Reports First Half 2011 Growth

Beiersdorf recorded organic sales growth of 2.6% in the first half of 2011. At current exchange rates, sales were up 1.9% on the previous year, at €2.9 billion (previous year: €2.8 billion).

The company states that Nivea’s 100th anniversary celebrations contributed to a strong performance by Beiersdorf’s consumer business.

“The campaign to position Nivea for the future and mark the brand’s 100th anniversary generated positive momentum at retailers and among our consumers in the second quarter," said Thomas-B. Quaas, CEO, Beiersdorf. "The performance of our skin and body care business shows that our ‘Focus on Skin Care. Closer to Markets’ strategy is having the desired effect. Overall, our business in the first half of the year was in line with our planning.”

The consumer business segment increased organic sales by 1.3% in the first six months of 2011. Nominal sales amounted to €2,431 million (previous year: €2,417 million).

Performance in Europe was affected the most by the streamlining of the product range and the exit from the Nivea makeup business. Sales amounted to €1,527 million (previous year: €1,537 million). Sales in Germany were 0.7% below the previous year, while sales in the other Western European markets declined by 2.0%. Some countries were unable to match their prior-year sales due to the impact of the streamlining measures, among other things. However, the United Kingdom and Austria recorded strong growth. The Eastern Europe region saw an increase in sales of 2.5%, with Russia in particular posting a healthy trend.

Sales in the Americas region increased by 12.5% to €405 million (previous year: €374 million). North America recorded a 9.7% growth rate, while sales in Latin America were up by as much as 14.3%. Argentina generated the best growth rate here, although all other key markets also saw excellent increases.

Sales in the Africa/Asia/Australia region declined by 0.6% to €499 million. Africa experienced a particularly healthy sales trend. Japan also saw extremely strong sales growth, with the 8x4 business being boosted significantly by a relaunch. In the Middle East, the effects of the political unrest in a number of Arab countries were felt in the second quarter. Sales in China were well below the 2010 figure due to the reorganization of the business structures there.

Sales growth in the consumer business segment for the remainder of 2011 will continue to be significantly affected by the streamlining of the product range. However, growth in the core areas is expected to more or less offset these effects.

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