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Beiersdorf Sees Skin Care Focus as Key to Growth
Posted: November 3, 2011
The Beiersdorf Group recorded organic sales growth of 2.1% in the first nine months of 2011. At current exchange rates, group sales were up 1.1% on the previous year, at €4,275 million (previous year: €4,228 million). The company recorded above-average nine-month growth rates in its key consumer business focus categories of face and body care by concentrating on its core competency—skin care. This offset the decline in sales resulting from product streamlining measures.
“We are continuing to hit our planning targets in full in Beiersdorf’s realignment year," said Thomas-B. Quaas, CEO, Beiersdorf. "The implementation of our ‘Focus on Skin Care. Closer to Markets’ strategy, which bundles our activities to focus on our core competency, skin care, is bearing fruit. This enabled us to achieve above-average growth in our focus categories, face and body care. Our global campaign marking the 100th anniversary of the Nivea brand contributed to this strong performance.”
Organic sales in the consumer business segment increased by 0.9% in the first nine months of 2011. Nominal sales amounted to €3,570 million (previous year: €3,574 million). The operating result excluding special factors was influenced by the increased marketing spend in connection with the activities for the 100th anniversary of Nivea and totaled €409 million (previous year: €467 million).
Performance in Europe was affected by the streamlining of the product range and the exit from the Nivea makeup business. Sales amounted to €2,180 million (previous year: €2,216 million). Sales in Germany were 4.3% below the previous year, while sales in the other Western European markets declined by 2%. Some countries were unable to match their prior-year sales due to the impact of the streamlining measures, among other things. The U.K. and Austria recorded strong growth, and the Eastern Europe region saw a sales increase of 3.7%, with the Russia/Ukraine Group and the CEE Group performing particularly well.
Sales in the Americas region rose 12.1% to €625 million (previous year: €582 million). North America recorded a 5.1% growth rate, while sales in Latin America were up 16.5%. In addition to Argentina and Brazil, the Andean Group made an especially strong contribution to this encouraging growth.