Beiersdorf grows in difficult market environment

• Organic Group sales growth of 4.3%
• EBIT margin excluding special factors improved to 14.2%
• Consumer achieves organic sales growth of 4.2%
• tesa delivers 4.3% organic sales growth
• Outlook for financial year 2014 confirmed

Hamburg, November 6, 2014 – Beiersdorf has shown sustainable and profitable growth in the first nine months of 2014. This was achieved despite an economic downturn in many markets. Organic Group sales climbed 4.3%. In nominal terms, sales increased by 0.9%, from EUR 4.674 billion to EUR 4.716 billion. Both the Consumer Business Segment and tesa contributed to this achievement. EBIT excluding special factors improved by 3.2%, from EUR 650 million to EUR 671 million. Excluding special factors, the EBIT margin increased to 14.2%, compared with 13.9% in the previous year.

“Our results for the first nine months show that Beiersdorf is well positioned and ‘weatherproofed’ even for stormier periods. Our business strategy, the Blue Agenda, is working – even in a more difficult market environment. This applies to the continuous strengthening of our brands, our focus on expanding our presence in the emerging markets, and above all to our investments in innovative products,” said Stefan F. Heidenreich, CEO of Beiersdorf AG.

The Consumer Business Segment generated organic sales growth of 4.2% in the reporting period. Sales and market shares increased in both the mature European markets and the emerging markets. At €3.905 billion, nominal sales were up 0.6% on the prior-year figure of €3.883 billion. NIVEA achieved growth of 5.7%, Eucerin delivered 6.7% growth and La Prairie 4.0%. EBIT excluding special factors improved to €529 million, up from €510 million in the previous year. The corresponding EBIT margin was 13.5% compared with 13.1% in the prior year.

Organic sales growth across the individual regions was as follows: 

In Europe, sales grew by 1.8%. The growth rate in Western Europe was 1.0%. In Eastern Europe, Beiersdorf generated sales growth of 5.1%. 

Sales in the Americas region also performed well, with growth amounting to 5.4%. Latin America saw a 6.5% increase in sales. In North America sales growth of 3.6% was achieved.

Beiersdorf further increased sales in the Africa/Asia/Australia region, which saw a rise of 8.5% despite a slowdown in economic growth in some markets in the past few months.

tesa achieved organic sales growth of 4.3%, continuing its dynamic business development. In nominal terms, sales increased by 2.5%, from €791 million to €811 million. EBIT excluding special factors improved from €140 million to €142 million, a rise of 1.3%. At 17.5%, the corresponding EBIT margin was down slightly on the prior-year level of 17.7%.

Beiersdorf is expecting sales growth in the Consumer Business Segment to outperform the market in financial year 2014, at 4–6%. The EBIT margin from operations is expected to be around 13%.

The tesa Business Segment is expecting sales growth of about 4% for financial year 2014, with market growth estimated at 2–3%. The EBIT margin from operations is expected to be about 16%.

Based on the forecasts for the two business segments, Group sales are expected to grow by 4–6%, with an EBIT margin from operations of over 13%.