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Beiersdorf Brings In Good Results for First Half of 2013
Posted: August 7, 2013
For the first half of 2013, Beiersdorf has continued to progress well with strong sales growth in both business segments, consumer and tesa, according to the company. The group's sales rose by 6.6% organically, and in nominal terms by 3.3%, from €3.062 billion to €3.163 billion. The operating result (EBIT) excluding special factors reached €434 million, an increase of 11.2%, representing a significantly improved EBIT margin of 13.7% (previous year: 12.7%). Consolidated after-tax profit rose to €287 million.
“The systematic implementation of our Blue Agenda over the last twelve months has given Beiersdorf a clear boost. We are becoming increasingly better at translating the potential of our brands and our company into economic success,” said Stefan F. Heidenreich, CEO of Beiersdorf AG.
Beiersdorf's consumer business segment delivered organic sales growth of 6.5% in the first six months of 2013. In nominal terms, sales increased by 3.1%, from €2.561 billion to €2.641 billion. In terms of organic sales growth by brand, Nivea grew by 6.8%, Eucerin by 12% and La Prairie by 5.3%.
Organic sales growth across the various regions was mixed. Sales in Germany were up 2.7%, while in Western Europe, sales were down 2.3%, as the weak economy continued to negatively impact the consumer climate. Beiersdorf also recorded a 1.3% decline in sales in Eastern Europe. The company saw significant growth in the Americas region, where sales climbed by 13.8% with a particularly strong performance in Latin America where sales grew 19.9%, driven primarily by Brazil. Sales in North America were up 4.3% on prior year. Sales in the Africa/Asia/Australia region rose by 19%, primarily attributable to the positive performance seen in China.
For 2013, Beiersdorf is targeting group sales growth of 5–6% for the full-year 2013 with a consolidated EBIT margin from operations of 12–13%. Specifically for its consumer business segment, Beiersdorf is predicting sales growth of 5–6% for 2013 and overall market growth of 3–4%. Targeted investments in sustainable marketing activities should provide further support for strong growth. The EBIT margin from operations is expected to exceed 12%.