WWD.com/beauty-industry-news/financial/beiersdorf-q3-profits-rise-327-7263381/
government-trade
government-trade

Beiersdorf Q3 Profits Rise 32.7%

The company raised its full-year forecast.

La Prairie Skin Caviar Luxe Sleep Mask

BERLIN — Beiersdorf AG’s third-quarter net profits rose 32.7 percent to 146 million euros, or $193.4 million.

 

In the three months ended Sept. 30, operating results (EBIT) excluding special factors — primarily related to the 2011 restructuring of the Hamburg-based company’s consumer division — were 216 million euros, or $286.1 million, a 16.8 percent uptick.

 

Sales increased 0.5 percent to 1.51 billion euros, or $2 billion.

 

RELATED CONTENT: WWD Earnings Tracker >>

 

Beiersdorf’s consumer business, which includes the Nivea, Eucerin and La Prairie brands, had an EBIT excluding special factors of 159 million euros, or $210.6 million, up 6.7 percent. The division’s sales dipped 1 percent to 1.24 billion euros, or $1.64 billion.

 

“Our market share has increased in many countries, both in emerging markets and for the first time in Europe, where we saw a clear rise in the third quarter,” said Beiersdorf chief executive officer Stefan F. Heidenreich.

 

In the first nine months, company net profits advanced 20.9 percent to 433 million euros, or $570.2 million. Excluding special factors, net profits gained 17 percent. Company EBIT rose 13 percent to 650 million euros, or $856 million.  

 

Sales for the period grew 2.4 percent to 4.67 billion euros, or $6.15 billion. On a like-for-like basis, the rise was 7.3 percent.

 

Dollar figures are converted from the euro at average exchange for the relevant period.

 

Beiersdorf’s consumer business EBIT excluding special factors increased 7 percent to 510 million euros, or $671 million. The activity’s sales rose 1.7 percent to 3.88 billion euros, or $5.11 billion, with the firm’s major brands contributing. On an organic basis, the revenues were up 6.9 percent.

 

Sales advanced 7.3 percent at Nivea, 11.1 percent at Eucerin and 5.4 percent at La Prairie. 

 

Both Beiersdorf’s consumer business divisions and its adhesives arm Tesa achieved above-market sales growth in the nine months.   

 

The company said due to the recent strong performance, it has raised its full-year forecast. Group sales are now expected to increase 6 percent to 7 percent, and its consolidated EBIT margin should be 13 percent. 

 

Beiersdorf expects its consumer business segment to register 6 percent to 7 percent sales gains, supported by targeted investments in innovations and emerging markets.