Having confirmed strong sales growth for the first three months of the year, German cosmetics giant Beiersdorf says it is expecting to build on growth during the course of 2006.
After being adjusted for currency translation, sales for the first three months grew by 6.2 per cent to reach €1.275m - a figure that was underscored by significant growth from its Nivea Beauté, Nivea Hair Care Styline and Nivea for Men ranges.
Thoma Quaas, executive board chairman, said that the company was also looking to build on both its sales and EBIT margins during the course of the coming financial year.
Looking at the challenges in the coming years, Quaas said he had underlined three core topics that would be receiving special attention, including increasing critical consumers, competing against an increasingly aggressive competition and the area of private labels.
These three areas are set to become a major part of the company's marketing and sales strategy up to 2010 and will be incorporated into goals to achieve a skin and beauty care sales increase of 5.6 per cent as well as increasing the EBIT margin from 11.6 per cent to 15 per cent.
In turn the company said that four strategies would be incorporated to achieve these goals, includin a continued focus on superior brands, the supply chain, key geographical focus and lean organisation.
"We will concentrate on a smaller number of more significant innovations with a clear benefit for consumers," Quaas said.
"New active ingredients for Face Care and a new Hair Care range will be ready in fall 2006. These will enable us to carefully further develop the Nivea brand, while fully concentrating on the dimensions of care and beauty," he added.
The company also said that its geographical focus will continue to focus on the key growth markets of Eastern Europe, Asia and Latin America, where it is aiming to replicate the double digit sales growth it experienced in all regions during 2005.