In reporting its financial results for 2013, Beiersdorf found it successfully continued its dynamic business development in the 2013 fiscal period. Both sales growth and the EBIT margin, excluding special factors, exceeded expectations. The company delivered organic sales growth of 7.2%; in nominal terms, sales increased by 1.7%, from €6 billion to €6.14 billion. Both business segments, consumer and tesa, contributed to this achievement.
“2013 was an important and successful year for Beiersdorf. The group has made gains in market share, increased sales and improved its earnings. Beiersdorf is back on a sustainable growth track,” commented Stefan F. Heidenreich, CEO of Beiersdorf AG, at the presentation of the company’s results.
Overall, the company lifted organic sales by 7.2% in the past financial year. In nominal terms, sales increased by 1.7% to €6.141 billion (previous year: €6.040 billion). The difference between the organic and nominal sales growth rates arises in large part by the strength of the euro during the past year.
The consumer business segment, which includes the company's skin care brands Nivea, Eucerin and La Prairie, recorded organic sales growth of 7% in 2013. In nominal terms, sales increased by 1.1% from €5.048 billion to €5.103 billion. All three core brands contributed to this dynamic growth: Nivea delivered 7.5% growth, Eucerin 11.5% and La Prairie 7.5%.
In terms of regional performance, Beiersdorf was successful in mature markets as well as emerging markets. For the first time, the share of total consumer sales achieved in emerging markets reached a level of 52%, compared to the prior-year level of 49%. In Europe, organic growth of 0.9% was achieved. Western Europe saw the first positive growth since 2008 with sales up to 1.2%. In Germany, Beiersdorf recorded positive business growth. In Eastern Europe sales were 0.4% below prior year. The Americas region recorded a strong increase in organic sales, with growth of 9%. Latin America continued to develop well with 11.4% growth, driven mainly by strong growth rates in Brazil. In North America, sales increased 4.6% compared to prior year. And the Africa/Asia/Australia region saw a 19% increase in organic sales. Significant growth rates were recorded in China, India and Japan.
For 2014, Beiersdorf expects company sales to increase by 4–6% and to deliver a slight improvement in its EBIT margin compared to 2013. In the consumer business segment, the expectation is for sales growth to outperform the overall market at a level of 4–6% with an operating EBIT margin slightly in excess of this year’s level.
Additional details on this financial report from Beiersdorf can be found here.