Beiersdorf outlook cut to 'underperform' by analysts
Leading global personal care player has had its credit rating cut to 'underperform' by financial analyst and broker Jeffries International.
The broker described Beiersdorf's recently announced Q2 results as 'poor', pointing to market losses in its domestic market of Germany.
"Market share losses in its core German franchise with broadly reported rising competitive pricing across the board within the skin category suggest Beiersdorf will be challenged to regain market share medium term," the broker said.
The company said that group sales for the first half of 2010 jumped by 7.8 per cent at current exchange rates to €3.17bn, compared to €2.94bn in the corresponding period last year.
In response to a drop of 2.3 per cent in sales for the domestic market, the company pointed to difficult comparisons, as sales had risen significantly in the first half of 2009.
