New Nivea launches help boost Beiersdorf sales but outlook contains caution

By Andrew MCDOUGALL contact

- Last updated on GMT

New Nivea launches help boost Beiersdorf sales but outlook contains caution

Related tags: Sales growth, Organic growth, North america

Nivea skin care maker Beiersdorf has posted strong results for the first half of 2013 and expects to continue to outperform its rivals, despite CEO Stefan Heidenreich urging caution over certain markets.

New product launches in shower/ bath care and anti-ageing has helped the German firm post a sales growth of 6.6 per cent, with sales growth expected to continue at a similar rate for the second half of the year.

"The systematic implementation of our Blue Agenda over the last twelve months has given Beiersdorf a clear boost.  We are becoming increasingly better at translating the potential of our brands and our company into economic success,"​ says Heidenreich.

Beiersdorf has launched its new cellular anti-ageing cream​, as well as a moisturiser that can be used in the shower​ this year, and the beauty firm’s boss believes this will keep its key brands booming and gain key market share in its consumer business, which saw a 6.5 per cent increase for H1.

Consumer strong but risky

In the Consumer Business Segment, Beiersdorf is predicting sales growth of 5-6 per cent for 2013 and overall market growth of 3-4 per cent. Targeted investments in sustainable marketing activities should provide further support for strong growth, says the company.

In terms of organic sales growth by brand, Nivea grew by 6.8 per cent, Eucerin by 12.0 per cent and La Prairie by 5.3 per cent.

This should lead to new product launches in the second half of the year and in 2014, and although the company expects sales growth to continue, Heidenreich has still urged caution sue to the slowing of emerging markets.

"Markets are still sluggish, we see some risk on the horizon for emerging markets, as indicated by competitors,"​ he told analysts.

It echoes statements made by rival firm Unilever last month, which reported second-quarter results just shy of forecasts and said growth in emerging markets was slowing.

Regions

In Western Europe, sales were down 2.3 per cent, as the weak economy continued to negatively impact the consumer climate, although in its native Germany Beiersdorf retains its strong position with sales up 2.7 per cent.

The Americas saw a big boost in the first half of the year with Brazil driving Latin America sales, which were up 19.9 per cent, whilst the developed North American market saw a 4.3 per cent growth on the prior year.

Sales also rose in the Africa/Asia/Australia region rose by 19.0per cent, primarily attributable to the positive performance seen in China.

To acquire or not to acquire

There was no mention whatsoever about the rumours of a deal with Procter & Gamble making any progress, with the company still refusing to comment on speculation, despite analysts giving their view​.

The company did however, say that it was open for acquisitions in North America, but that they were not at the top of its list for now.

"The priority is organic growth,"​ Heidenreich told journalists after the group reported the second-quarter results.

Related topics: Business & Financial

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