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Beiersdorf After-Tax Profit Declines 5.2% in 2017

The maker of Nivea, Eucerin and La Prairie products expects sales growth this year will be about 4 percent.

PARIS — Beiersdorf AG‘s reported after-tax profit for 2017 declined 5.2 percent, mostly due to one-off gains in the prior year, negative exchange rate effects and losses from financial investments.

The German maker of Nivea, Eucerin and La Prairie products posted full-year after-tax profit of 689 million euros.

Operating results rose 7.2 percent to 1.09 billion euros, and the Hamburg-based company said on Thursday that its EBIT margin was 15.4 percent, versus 15 percent in 2016.

Company sales in 2017 reached 7.06 billion euros, up 4.5 percent in nominal terms and 5.7 percent on a nominal basis.

“Contrary to overall developments within the sector, the [Consumer] Business Segment experienced strong growth particularly in the fourth quarter,” the company said in a statement.

The division’s sales advanced 3.4 percent to 5.8 billion euros, while organic revenues grew 4.7 percent, with all regions contributing. The consumer division’s powerhouse brands all notched sales gains: Nivea with 4.5 percent, Eucerin with 3.4 percent, Hansaplast with 3.8 percent and La Prairie with 11.5 percent.

The Tesa Business Segment registered a sales uptick of 9.8 percent in nominal terms and 10.6 percent on an organic basis to 1.26 billion euros.

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The group expects for 2018 sales growth of about 4 percent, while after-tax profit “is expected to increase significantly.” Beiersdorf’s EBIT margin, meanwhile, should be at the same level as in 2017.

Sales for the company’s consumer division are expected to be up between 4 percent and 5 percent, and the Tesa unit’s revenues should grow 3 percent to 4 percent.

“Our high levels of efficiency and flexibility are key factors to our success,” said Stefan F. Heidenreich, chief executive officer of Beiersdorf, in the statement. “We therefore look ahead to the 2018 financial year with confidence and cautious optimism.”