Beiersdorf results beat expectations
brand, has reported second quarter results that have exceeded
analysts expectations, as sales rose nearly 6 per cent.
The second quarter marked an improvement in the company's first quarter performance in which sales had been largely flat. For the quarter ending June 30 sales rose from €1.19 billion in 2004, to reach €1.26 billion for this year.
For the full six month period sales grew from €2.36 billion in 2004 to reach €2.43, a rise of 3.0 per cent, including adjustments for currency changes.
The increase in sales was also reflected in the EBITDA operating results, which was up 11.4 per cent for the quarter, from €157 million to €175 million. For the six month period EBITDA was up 7.6 per cent to reach 357 million.
Analysts said they were encouraged by the results, as the results beat their expectations. Shares in the company have risen 3 per cent on the previous week to €96.11 as a result.
The performance has come despite sluggish economies in many of Beiersdorf's key European markets, and in particular the domestic market, where the economic woes have curbed consumer spending. However, the company managed to buck the trend in Germany, achieving a sales increase of 2.5 per cent, despite the flat personal care market there.
In other European markets the picture was more mixed. Eastern Europe returned to double digit sales growth, after a difficult 2004, but sales in Western Europe rose just 1.0 per cent, reflecting restrained consumer spending across the board. Spain and Belgium were earmarked as showing strong growth, but the Nordic countries, France and Switzerland were weaker than in the the first half of 2004.
In the Americas, sales grew by 1.4 per cent taking into account the affects of a stronger dollar, amounting to $274 million. Highlights included double digit growth for La Prairie brand in the US and sales growth of 7.5 per cent in South America.
Highlights in the past six months have included the company's Juvena/La Prairie entering into the fragrance category with the lauch of La Prairie Silver Rain. The company says that the launch was well received on the market and contributed to the group's positive financial performance in the first six months of the year.
The company also continues to successfully exploit the Nivea brand, with the new Nivea Sun series and the Nivea Deo Pure both proving successful in Europe.
The company said that it is now reiterating its forecasts from the beginning of the year that its expects to see EBIT margins increase by around 11 per cent and sales growth at 2004 levels, when sales grew at 2.7 per cent.
