Beiersdorf reports sales and earnings increase with half-year results
The company notes that its nominal sales were actually down 1.3% to EUR 3.358 billion due to the effects of negative exchange rates, but sales and earnings were up. The company’s EBIT margin reached 15.3%, up from last year’s 14.9%.
As a result, the company notes that it remains cautiously optimistic and has confirmed its guidance in light of its results, with CEO Stefan F. Heidenreich noting: “Beiersdorf is continuing on its profitable growth path. Once again, we were able to increase sales and profits, gaining market shares and defying a challenging market environment.”
Being successful ‘not a given’
Between January and June of this year, group sales for the company rose in organic terms across the board. In Europe, these were up 3.2%; in the Americas, they were up 2%; and in Africa/Asia/Australia, the figure was 2.6%.
However, in terms of nominal sales performance, the figures were less strong, with only the company’s European division recording positive growth, at 0.4%. Beiersdorf is pinning this decline on negative currency effects, but also acknowledge the economic and political climate is currently tough.
“The current economic and political developments across the world have increased both overall consumer uncertainty and competitive pressure,” notes CEO Heidenreich.
“Being successful in such an environment is not a given. Beiersdorf continues to concentrate on its core strengths: its brands, its innovation capacity and expanding its presence in emerging markets. Overall, we are cautiously optimistic about the full year.”
Thanks to core brands
According to the company, Beiersdorf’s core brands are partly to thank for its 3.3% organic sales growth in its consumer business segment.
This sales growth saw the company’s EBIT margin widen despite the actual sales figure total coming in at EUR 2.798 billion, 1% lower than last year’s EUR 2.827: again, the company pins this on the impact of currency exchange.
“All core brands contributed to this positive sales performance,” Beiersdorf notes in a statement. “NIVEA increased sales by 4.2%, Eucerin by 1.0%, and La Prairie by 6.2%.”
Beiersdorf picks out Germany, Russia, Eastern Europe, Brazil, Mexico, Japan and India as its key growth markets.
