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Beiersdorf Records Steady Gains for First Nine Months of 2012
Posted: November 2, 2012
Beiersdorf continues on its upward trend, as the company recorded an increase in organic group sales of 3.7% for the first nine months of the current fiscal year. In nominal terms, sales rose by 6.8% to €4,566 million (prior year: €4,275 million) driven primarily by the strong increase in sales recorded in emerging markets. Beiersdorf now generates around 48% of its total sales in the consumer business segment in these countries. The operating result (EBIT) excluding special factors rose by 16.8% to €575 million (prior year: €492 million). The corresponding EBIT margin was 12.6% (2011: 11.5%).
Stefan F. Heidenreich, chairman of the executive board of Beiersdorf AG, commented, “The results of the first nine months show that we are on track. Implementation of the blue agenda, which sets out our business activities and goals for the coming years, is starting to bear fruit in all four core areas of the program: delivering top-line growth, strengthening our brands, innovation power, and extending our presence in emerging markets.”
In the consumer business segment, Beiersdorf delivered organic sales growth of 3.7% in the first nine months of the current fiscal year. Sales rose by 6.9% in nominal terms. All of the company’s core brands contributed to this growth, led by an increase of 5.4% for Nivea, 5.4% for Eucerin, and 4.8% for La Prairie.
At a regional level, business development has been mixed and was often heavily influenced by the macroeconomic situation in the individual countries. The company recorded a decline in sales of 2.5% in Western Europe, impacted by 2011’s pruning of the product portfolio, the weakening economy and the associated poor consumer climate in most cases. Sales in Germany were down 0.5% versus prior year. In Eastern Europe, the company generated strong growth of 7.7%. The key driver was the increase in sales recorded in the Russian market. Sales rose by 9.9% in the Americas region, and in the Latin America region, Beiersdorf generated a strong sales increase of 15.5%, while sales in North America were at prior year’s level. The Africa/Asia/Australia region delivered year-on-year sales growth of 9.6%, generating particularly strong sales growth in the Middle East and South-East Asia. In line with forecast, sales in China were on a level with the previous year.
As part of the company’s stronger focus on emerging markets, Beiersdorf also has begun construction of a new production facility in Silao, Mexico representing an investment of more than €80 million. The factory will begin operations in the course of 2014.
As an outlook for 2012, Beiersdorf reconfirmed its business forecast for the full year, and the company now expects sales growth of 3-4%. The EBIT margin from operations, which was raised as of the end of the first half of 2012, is expected to be around 12%.