PARIS – A strong turnout from Beiersdorf AG in the third quarter beat financial analysts’ expectations and helped drive the company’s stock up strongly on the Frankfurt DAX exchange Thursday.
The German maker of Nivea, Eucerin and La Prairie products posted a third-quarter organic sales gain of 8.6 percent, well ahead of financial analysts’ consensus projection of 5.5 percent and Liberum’s estimate of 4.9 percent, the bank’s consumer team said in a research note.
Sanford C. Bernstein & Co. LLC had expected a 5 percent rise for the third quarter ended Sept. 30. “The Q3 consumer growth puts Unilever’s insipid pc growth into perspective,” wrote Andrew Wood, an analyst at the bank, in a note.
As reported last week, Unilever’s personal care division registered a 1.8 percent uptick on an underlying basis. The company said overall momentum in the three-month period was adversely affected by poorer weather in Europe versus the same prior-year period and natural disasters in the Americas.
Beiersdorf stock was trading up 4.7 percent to 95.66 euros at 3 p.m. CET, a few hours after the Hamburg-based company said its sales advanced 4.9 percent in the first nine months of 2017. That turnout was bolstered largely by the group’s consumer division, in which the premium La Prairie brand registered a 13 percent sales gain, reaping the benefits of consumers’ growing appetite for prestige skin care these days.
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Beiersdorf reported sales of 5.28 billion euros in the nine months ended Sept. 30. In organic terms, group revenues grew 5.1 percent. Effects from exchange rates dampened growth by 0.1 percentage points, and structural effects by 0.1 percentage points.
The group’s consumer business’ sales increased 3.8 percent to 4.34 billion euros, with all core brands contributing. Revenues were up 3.7 percent at Nivea, 2.4 percent at Eucerin and 2.7 percent at Hansaplast. Sales growth for the division was particularly strong in the Africa-Asia-Australia region and robust in Europe and the Americas.
Tesa’s revenues, meanwhile, advanced 10.6 percent to 945 million euros.
Beiersdorf said that due to its strong third-quarter performance, the group had raised its full-year forecast, with sales now expected to grow by 4 percent to 5 percent in 2017. In August, it had given guidance of 3 percent to 4 percent.
The company’s consumer business branch is forecast to outperform the market, with sales gains of about 4 percent and an EBIT margin from operations slightly exceeding last year’s. Tesa is forecast to register around 8 percent sales growth, and an operating EBIT margin up slightly on that in 2016.