Beiersdorf announces unanticipated financial gain

By Guy Montague-Jones

- Last updated on GMT

Related tags: Supply chain, Investment, Economics, Beiersdorf

Beiersdorf has announced an unexpected gain from the realignment of
its supply chain and remains well positioned to weather any
economic storms.

The company reviewed the financial impact of the realignment of its consumer supply chain and now anticipates a gain of €15m in 2008 from its restructuring efforts. Improved expectations​ The figure is an improvement on its previous estimate of €30m in costs given in its annual report in February. ABN AMRO analyst Jeremy Fialko told that the gain is an exceptional item related to the sale of its logistics facilities and that importantly its forecasted cost savings from the restructuring remain unchanged. Beiersdorf expects the supply chain realignment to deliver cost savings of €70m for 2008 and €100m from 2009 onwards. Financial position​ Fialko said the company is in a very strong position financially with plenty of cash on the balance sheet. Looking on the expectations for top line growth, the analyst said the current economic climate is likely to affect the company making sales growth slower than previously hoped, added Fialko. In its financial results for 2007 Beiersdorf reported sales of €5.5bn for the fiscal year, which adjusting for currency translated into a 9.1 per cent increase on 2006.

Related topics: Business & Financial

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