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Beiersdorf Sales Up 4.7% in 2012
Posted: March 5, 2013
The Beiersdorf Group delivered sustainable growth in 2012 and achieved its sales and EBIT targets. In organic terms, sales by the company increased by 4.7%. In nominal terms, sales rose by 7.2%, from €5.633 million to €6.040 million. Sales in the company’s consumer business segment rose organically by 4.9%.
“We are satisfied with our fiscal year 2012 performance. We have met our sales and earnings targets,” said Stefan F. Heidenreich, CEO of Beiersdorf AG, when presenting the company’s figures. For 2013, Beiersdorf forecasts sales growth in excess of the market and a further improvement in the EBIT margin. “We will systematically continue the path set out in the Blue Agenda, our strategic compass. The focus remains on strengthening our brands—first and foremost, Nivea—developing innovative products, and extending our presence in emerging markets,” Heidenreich commented.
In nominal terms, sales by Beiersdorf’s consumer business segment increased by 7.5% to €5.048 million (previous year: €4.696 million), while in organic terms, sales rose 4.9%. EBIT excluding special factors amounted to €606 million (previous year: €537 million), while the corresponding EBIT margin was 12.0% (previous year: 11.4%). The EBIT margin excluding special factors in the consumer business segment was impacted by one-time expenses in China. These mainly comprised provisions relating to the relaunch of the company's Chinese hair care product lines. Without these expenses, it would have been 0.3–0.4 percentage points higher.
All core brands—Nivea, Eucerin and La Prairie—generated robust organic growth. Nivea achieved growth of 6.4% worldwide. Sales in the European region increased slightly by 0.6%, with Eastern Europe generating strong growth of 8.7%. As expected, sales in Western Europe were down on the previous year (-1.8%) due to the difficult macroeconomic conditions in a number of countries. Sales in Germany were almost on a level with the previous year (-0.6%). Beiersdorf’s business performance in this sector was influenced by a streamlining of the product portfolio, as well as the insolvency of the Schlecker drugstore chain.
Sales in the Americas region rose by 12.6%. Latin America performed particularly well, with an increase in sales of 17.7% driven primarily by extremely good growth rates in Brazil. Sales in North America were up 2.7% on the previous year.
The Africa/Asia/Australia region recorded a 9.9% increase in sales. In line with planning, sales in China were on a level with the previous year.
Additonally, the share of sales by the consumer business segment accounted for by markets in Eastern Europe, Latin America, and Africa/Asia/Australia rose to 49% in 2012 (previous year: 46%).
For fiscal year 2013, Beiersdorf forecasts sales growth in excess of the market and a further improvement in the EBIT margin. For the consumer business segment, the company is targeting sales growth to outperform the market in 2013. The EBIT margin from operations should exceed the prior-year level.