Beiersdorf on growth path Sales and earnings increase in 2013

• Organic Group sales up 7.2% 
• EBIT margin excluding special factors increased to 13.2% 
• Consumer lifts organic sales by 7.0% 
• tesa delivers 8.5% organic sales growth
• Outlook for 2014: Sales growth to out-perform market  

Hamburg, March 4, 2014 – Beiersdorf successfully continued its dynamic business development in 2013. Both sales growth and the EBIT margin excluding special factors exceeded expectations. The Group delivered organic sales growth of 7.2%.  In nominal terms, sales increased by 1.7%, from €6,040 million to €6,141 million. Both business segments, Consumer and tesa, contributed to this achievement. Group EBIT excluding special factors increased to €814 million (previous year: €735 million), representing an improved EBIT margin of 13.2% compared to last year’s 12.2%.        

“2013 was an important and successful year for Beiersdorf. The Group has made gains in market share, increased sales and improved its earnings. Beiersdorf is back on a sustainable growth track,” commented Stefan F. Heidenreich, CEO of Beiersdorf AG, at the presentation of the company’s results.   

For 2014 Beiersdorf expects to deliver sales growth of 4-6% and an improved EBIT margin. 

The Group lifted organic sales by 7.2% in the past financial year. In nominal terms, sales increased by 1.7% to €6,141 million (previous year: €6,040 million).  The difference between the organic and nominal sales growth rates arises in large part by the strength of the euro during the past year.  

Group EBIT excluding special factors increased by 10.7% from €735 million to €814 million.  The corresponding EBIT margin was 13.2% for 2013 compared with 12.2% in the prior year.             

Profit after tax excluding special factors increased to €537 million from the prior year level of €480 million*.  The corresponding earnings per share performance of €2.33 marks a clear improvement over last year’s €2.08*.  As last year, a dividend of €0.70 per share will be proposed to the Shareholders’ Meeting. 

The Consumer Business Segment recorded organic sales growth of 7.0% in 2013.  In nominal terms, sales increased by 1.1% from €5,048 million to €5,103 million. All 3 core brands contributed to this dynamic growth: NIVEA delivered 7.5% growth, Eucerin 11.5% and La Prairie 7.5%.  

In terms of regional performance, Beiersdorf was successful in mature markets as well as emerging markets. For the first time, the share of total Consumer sales achieved in emerging markets reached a level of 52%, compared to the prior-year level of 49%.     

In Europe, organic growth of 0.9% was achieved. Western Europe saw the first positive growth since 2008 with sales up to 1.2%. In Germany Beiersdorf recorded positive business growth. In Eastern Europe sales were 0.4% below prior year.   

The Americas region recorded a strong increase in organic sales, with growth of 9.0%. Latin America continued to develop well with 11.4% growth, driven mainly by strong growth rates in Brazil. In North America, sales increased 4.6% compared to prior year.       

The Africa/Asia/Australia region saw a 19.0% increase in organic sales. Significant growth rates were recorded in China, India and Japan. 

tesa recorded another year of strong growth delivering 8.5% organic sales growth.  Nominally, sales increased by 4.7% to €1,038 million from last year’s €992 million.  EBIT excluding special factors rose by 36.3% from €129 million last year to €176 million, representing an EBIT margin excluding special factors of 16.9% (previous year: 13.0%). 

This positive result was driven by strong performances from both the consumer as well as the industrial businesses in all regions. Business development was especially positive in Asia and the USA, where the key growth areas were the electronics and automotive industries.    

For 2014, Beiersdorf expects Group sales to increase by 4-6% and to deliver a slight improvement in the Group’s EBIT margin compared to 2013.  

In the Consumer Business Segment, the expectation is for sales growth to out-perform the overall market at a level of 4-6% with an operating EBIT margin slightly in excess of this year’s level.   

tesa forecasts top-line growth slightly in excess of the expected market growth of 2-3% with an operating EBIT margin slightly below the prior-year level. 

*  The prior-year figures have been adjusted due to the retrospective application of IAS 19 (2011). See the disclosures in the section of the notes to the consolidated financial statements entitled “Changes in Accounting Policies” in the Beiersdorf Annual Report 2013.