BERLIN — Beiersdorf Group’s consumer division posted a 7.1 percent increase in third-quarter operating results to 121 million euros, or $154.4 million at average exchange rates, excluding special factors relating to the realignment of its consumer supply chain.
When costs incurred by the supply chain realignment are taken into account, the consumer division’s earnings before interest and taxes were down to 82 million euros, or $104.6 million, compared to 113 million euros, or $144.2 million, in the prior year.
The consumer division includes skin care brands Nivea, Eucerin, La Prairie, Juvena, Marlies Möller, Labello, Florena and others, as well as bandages under the Hansaplast, Curad, Curitas and Elastoplast brands.
Consumer division sales for the quarter ending Sept. 30 were up 8.7 percent to 1.05 billion euros, or $1.34 billion.
For the first nine months of 2006, consumer sales rose 7 percent on a currency-adjusted basis. Strong double-digit growth was seen in the Eastern Europe, Latin America and Africa/Asia/Australia regions, the Hamburg-based group said. Global sales for Nivea rose 8.4 percent, driven by Nivea Sun, Nivea deodorant, Nivea for Men and Nivea Body. Eucerin and La Prairie also generated above-average growth.
Excluding special factors, consumer division EBIT for the first nine months increased by 10.7 percent to 405 million euros, or $497.9 million.
For the year as a whole, Beiersdorf said it expects Group sales to exceed the five billion euro mark, or $6.35 billion at current exchange, for the first time. It is forecasting consumer sales growth of at least 6 percent, with the consumer division EBIT margin (before special factors) to reach about 12 percent compared with 11.6 percent in 2005.
This story first appeared in the November 8, 2006 issue of WWD. Subscribe Today.