PARIS — Although sales at Beiersdorf AG dipped slightly in the first nine months due to negative exchange rate effects, the company increased its profit guidance for full-year 2016 on the back of organic growth.
The German maker of Nivea, Eucerin and La Prairie posted sales of 5.03 billion euros, or $5.62 billion, down 0.1 percent in reported terms and up 2.9 percent on an organic basis. Currency effects reduced the gains by 2.9 percentage points and structural changes by 0.1 percentage points, according to the company that is based in Hamburg.
Beiersdorf said that due to its profitable growth in the January-to-September period, it now expects that EBIT margin from operations to “significantly exceed the prior-year figure,” which was 14.4 percent in 2015. The company also confirmed its guidance for group sales, which are expected to increase in the range of 3 percent to 4 percent in 2016.
The company’s consumer business registered sales of 4.177 billion euros, or $4.66 million, which rose 0.1 percent in reported terms and 3.2 percent on a like-for-like basis, particularly boosted by business in Europe and the Americas but negatively impacted by the stronger euro.
Beiersdorf’s top brands posted sales gains in the nine months: Nivea was up 3.6 percent; Eucerin, 2.9 percent, and La Prairie, 6.1 percent.
The Tesa adhesives division’s revenues declined 1 percent to 855 million euros, or $954.4 million, dented by exchange rate effects. On an organic basis, its sales rose 1.2 percent.
Dollar figures are converted at average exchange for the period to which they refer.
“The consumer segment has continued its growth thanks to strong brands and product innovations. After a weaker first quarter, Tesa achieved a sizable boost in sales in the last six months,” said Stefan Heidenreich, chief executive officer of Beiersdorf. “The positive performance of both business segments cannot be taken for granted. Intensified competition and declining growth in many markets have dominated the market environment over recent months.”