Beiersdorf Raises Profitability Forecast

The company’s second-quarter EBIT increased 2.1 percent.

BERLIN  Beiersdorf AG’s net profits were down 7.5 percent in the second quarter of 2012, reaching 123 million euros, or $158.1 million. Company sales rose 2.3 percent to 1.53 billion euros, or $1.96 billion.

Operating results (EBIT) were up 2.1 percent to 191 million euros, or $245.5 million, in the three months ended June 30.
The Hamburg-based group’s consumer business, which includes the Nivea, Eucerin and La Prairie brands, registered a 2 percent gain in second-quarter sales to 1.28 billion euros, or $1.65 billion. EBIT excluding special factors (non-recurring costs relating to the realignment of the consumer business segment completed in November 2011) grew 4.5 percent to 163 million euros, or $209.5 million.
In the first half of 2012, Beiersdorf’s net profits were down 3.9 percent to 248 million euros, or $321.9 million. Company EBIT advanced 7.4 percent to 374 million euros, or $485.5 million. Its sales, meanwhile, gained 5.5 percent to 3.06 billion euros, or $3.97 billion.

RELATED STORY: Henkel Q2 Profits Rise 9.9% >>

All dollar figures are converted from the euro at the average exchange rate for the period to which they refer.

In the six months, Beiersdorf’s consumer business segment recorded sales growth of 5.3 percent to 2.56 billion euros, or $3.32 billion. Its EBIT climbed 11.3 percent to 327 million euros, or $424.5 million. The branch’s sales in Europe slipped 1.4 percent, with Western European revenues down 4 percent compared to an 8.1 percent increase in Eastern Europe. Domestic sales declined 2.2 percent. Driven by strong growth in Latin America, especially Brazil, revenues in the Americas increased 8 percent. However, sales in North America were down 2 percent. The Africa, Asia, Australia region registered a 9.6 percent rise.

Beiersdorf said all of its core brands contributed to sales growth, led by gains of 4.4 percent at Nivea, 3.1 percent at Eucerin and 2.7 percent at La Prairie.

The results were in line with expectations, the company said. Its 2012 sales outlook was confirmed, with 2012 group sales expected to grow about 3 percent. Beiersdorf raised its earnings forecast, which now calls for an operating EBIT margin of 12 percent compared to the previously published target of 11 percent to 12 percent.