11/2/2012

Beiersdorf on track – Positive business development in the first nine months of 2012

Visit the interactive version of the Interim Report 9M 2012 here.

  • Beiersdorf AG increases Group sales by 3.7%
  • Strong sales growth in the emerging markets
  • EBIT excluding special factors rises by 16.8% to €575 million
  • EBIT margin increased to 12.6%
  • Sales outlook for 2012 improved – profit forecast confirmed
  • New facility in Mexico to begin production in 2014

Hamburg, November 2, 2012 – Beiersdorf continues on its upward trend. The company recorded an increase in organic Group sales of 3.7% for the first nine months of the current fiscal year. In nominal terms, sales rose by 6.8% to €4,566 million (prior year: €4,275 million) driven primarily by the strong increase in sales recorded in emerging markets. Beiersdorf now generates around 48% of its total sales in the Consumer business segment in these countries. The operating result (EBIT) excluding special factors rose by 16.8% to €575 million (prior year: €492 million). The corresponding EBIT margin was 12.6% (2011: 11.5%).

Stefan F. Heidenreich, Chairman of the Executive Board of Beiersdorf AG, commented, “The results of the first nine months show that we are on track. Implementation of the Blue Agenda, which sets out our business activities and goals for the coming years, is starting to bear fruit in all four core areas of the program: delivering top-line growth, strengthening our brands, innovation power, and extending our presence in emerging markets.”

Consumer business segment

In the Consumer business segment, Beiersdorf delivered organic sales growth of 3.7% in the first nine months of the current fiscal year. Sales rose by 6.9% in nominal terms. All of the company’s core brands contributed to this growth, led by an increase of 5.4% for NIVEA, 5.4% for Eucerin, and 4.8% for La Prairie. 

EBIT excluding special factors rose from last year’s €409 million to €476 million, an increase of 16.3%. The corresponding EBIT margin improved to 12.5% from the prior-year figure of 11.5% primarily as a result of the successful realignment of corporate structures and processes, and more focused marketing and selling expenses.

At a regional level, business development has been mixed and was often heavily influenced by the macroeconomic situation in the individual countries.
Beiersdorf recorded a decline in sales of 2.5% in Western Europe, impacted by 2011’s pruning of the product portfolio, the weakening economy, and the associated poor consumer climate in most cases. Sales in Germany were down 0.5% versus prior year.

The company generated strong growth of 7.7% in Eastern European markets. The key driver was the increase in sales recorded in the Russian market.

Sales rose by 9.9% in the Americas region. In the Latin America region Beiersdorf generated a strong sales increase of 15.5%. Sales in North America were at prior year’s level. 

As part of our stronger focus on emerging markets, Beiersdorf has begun construction of a new production facility in Silao, Mexico representing an investment of more than €80 million. The factory will begin operations in the course of 2014. 

The Africa/Asia/Australia region delivered year-on-year sales growth of 9.6%. Beiersdorf generated particularly strong sales growth in the Middle East and South-East Asia. In line with forecast, sales in China were on a level with the previous year.

tesa business segment

tesa continued its successful course in the first nine months of the current fiscal year with sales increasing by 3.5% organically and in nominal terms by 6.4% from €705 million to €750 million. EBIT improved to €99 million (2011: €83 million), an improvement of 19.2%. The EBIT margin increased to 13.2% from the prior-year figure of 11.8%.

Outlook for 2012

Beiersdorf re-confirms its business forecast for full-year 2012. The company now expects sales growth of 3-4%. The EBIT margin from operations, which was raised as of the end of the first half of 2012, is expected to be around 12%.

Beiersdorf now expects sales growth in the Consumer business segment of 3-4% in 2012. The EBIT margin from operations should be approximately 12%.

tesa is predicting sales growth of 3-4% in 2012. The EBIT margin in 2012 should be in excess of 12%.

Group 9M/2012
9M/2011 
9M/2012
Sales 4,275
4,566
Sales growth in % (organic)
 2.1  3.7
Sales growth in % (adjusted for currency translation effects)
1.7 3.6
Sales growth in % (nominal)
1.1 6.8
Operating result (EBIT)
491 558
Operating result (EBIT), excluding special factors
492 575
EBIT margin
11.5 12.2
EBIT margin, excluding special factors
11.5 12.6
Profit after tax
336 358
Profit after tax, excluding special factors
333 370
Return on sales after tax
7.9 7.8
Return on sales after tax, excluding special factors
7.8 8.1

Consumer


Sales 3,570 3,816
Sales growth in % (organic) 0.9 3.7
Sales growth in % (adjusted for currency translation effects)
0.5 3.7
Sales growth in % (nominal)  -0.1 6.9
Operating result (EBIT) 408
459
Operating result (EBIT), excluding special factors 409 476
EBIT margin 11.4 12.0
EBIT margin, excluding special factors 11.5 12.5

tesa


Sales 705
750
Sales growth in % (organic) 8.3
3.5
Sales growth in % (adjusted for currency translation effects) 8.3 2.9
Sales growth in % (nominal) 7.8 6.4
Operating result (EBIT) 83 99
EBIT margin 11.8
13.2

Press Contact

Inken Hollmann-Peters
Vice President Corporate Communications & Sustainability

Beiersdorf AG
Unnastrasse 48
20245 Hamburg, Germany

Phone: +49 (0) 40 - 4909 2001

Email: cc@beiersdorf.com