BERLIN — Weak market conditions, especially affecting its Tesa adhesives division, sent Beiersdorf’s profit after taxes plummeting 40 percent to 89 million euros, or $121.2 million at average exchange, in the second quarter.
This story first appeared in the August 5, 2009 issue of WWD. Subscribe Today.
Earnings before interest and taxes for the group dropped 30.5 percent to 146 million euros, or $198.9 million, while group sales slipped 4.1 percent to 1.5 billion euros, or $2.05 billion.
Beiersdorf’s key consumer business unit, which includes cash cow Nivea, as well as Eucerin, La Prairie and other cosmetics brands, fared better, but also felt the pressure of the economic crisis. EBIT was down 24.3 percent to 140 million euros, or $190.7 million, though excluding special factors due to the realignment of the Consumer Supply Chain, consumer EBIT fell 18.6 percent. Second-quarter sales for the division were down 1.8 percent, reaching 1.33 billion euros, or $1.81 billion.
In the first six months of 2009, the consumer division’s EBIT dropped 20.7 percent to 284 million euros, or $379.2 million. Sales slipped 2.1 percent to 2.59 billion euros, or $3.46 billion, though the division achieved organic growth of 0.3 percent.
Global Nivea sales experienced organic growth of 0.7 percent for the six-month period, and Eucerin achieved a 9 percent sales gain. Beiersdorf said its luxury La Prairie brand, however, was “particularly hard hit by the negative economic developments,” with sales “well below the previous year.”