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Emerging Markets Drive Beiersdorf's 5.4% Sales Growth
Posted: May 2, 2013
Beiersdorf has continued last year’s positive trend in the first quarter of 2013. The organic group sales rose by 5.4%, as nominal sales increased by 2.9%, from €1,533 million to €1,577 million. The key driver for this positive performance was the double-digit sales growth recorded in emerging markets. “Beiersdorf made a good start into the year 2013. We have made further progress in implementing our Blue Agenda, in particular in the areas of brands and innovation. Furthermore we expanded our position and increased our market share in emerging markets,” said Stefan F. Heidenreich, CEO of Beiersdorf AG.
The consumer business segment increased its sales organically by 5.7% in the first three months of fiscal year 2013. Nominal sales increased by 3.2%, from €1,277 million to €1,318 million. Nivea recorded sales growth of 5.7% as against the prior-year quarter, and Eucerin generated a 9.4% increase in sales as of the end of the period, while La Prairie saw an 8.2% increase.
Business performance in the individual regions was mixed. Sales in Europe were down 1.2% versus prior-year mainly due to consumers in Europe—and particularly in Southern European countries—being generally reluctant to spend. In Western Europe, sales were down 0.7% on the previous year while in Germany, they were down 1.8%. Beiersdorf recorded a 1.5% decline in sales in Eastern Europe after a strong performance in the prior-year quarter. The company saw significant growth in the Americas region, where sales climbed by 14.8%. Beiersdorf was particularly successful in Latin America, increasing sales by 21.6%. The main driver here was the strong sales growth recorded in Brazil. Sales in North America were up 5.4% on the prior-year figure, and Beiersdorf’s sales in the Africa/Asia/Australia region rose by 16.0%. This was primarily attributable to the positive performance seen in China, India, and the Middle East.
Reiterating its outlook, Beiersdorf is aiming for sales growth in the group above market in 2013. The consolidated EBIT margin from operations should exceed the previous year in 2013. In the consumer business segment, Beiersdorf also is aiming for sales growth above market in 2013.