BERLIN – Beiersdorf AG increased profits and earnings, while sales were negatively impacted by currency effects in the first half of 2016.
Net profits for the Hamburg-based firm increased 5.7 percent to 371 million euros, or $414 million. Earnings before interest and taxes improved by 1 percent to 513 million euros, or $572 million.
The consumer goods company’s group sales amounted to 3.36 billion euros, or $3.75 billion, a dip of 1.3 percent. On an organic basis, group sales grew 2.8 percent.
Dollar figures are converted at average exchange for the period in question.
Operating results for Beiersdorf’s consumer segment climbed 3.4 percent to 424 million euros, or $473.1 million. Its sales fell 1 percent to 2.8 billion euros, or 3.12 billion, due to exchange rate effects. In organic terms, revenues grew by 3.3 percent. All core brands contributed to the increase, the company said.
La Prairie turned in the best result, with a 6.2 percent sales rise. Nivea revenues grew by 4.2 percent, and sales of Eucerin were up 1 percent.
Beiersdorf’s adhesives arm, Tesa, reported a 2.7 percent sales slump to 560 million euros, or $624.9 million. In organic terms, Tesa sales rose 0.2 percent.
“The current economic and political developments across the world have increased both overall consumer uncertainty and competitive pressure. Being successful in such an environment is not a given,” stated Beiersdorf chief executive officer Stefan Heidenreich. “Beiersdorf continues to concentrate on its core strengths: its brands, its innovation capacity and expanding its presence in emerging markets. Overall, we are cautiously optimistic about the full year.”