Beiersdorf AG, maker of the Nivea brand, today (May 3) said profit in the first quarter was flat with last year, while revenues improved year-over-year. The company confirmed its outlook for 2012.
Beiersdorf AG, maker of the Nivea brand, today (May 3) said profit in the first quarter was flat with last year, while revenues improved year-over-year. The company confirmed its outlook for 2012.
Beiersdorf AG’s first-quarter net profits were flat at 125 million euros, or $163.8 million, the company announced today. The company benefited from a positive overall market trend in the quarter after the weak business performance seen in Asia and Europe in the first quarter of the previous year. Positive calendar effects also contributed to the sales increase.
Adjusted for special factors, net income at the Hamburg, Germany-based cosmetics and adhesive maker gained 7.1 percent to 135 million euros, or $176.9 million.
Group operating profits, excluding special factors, were up 18.6 percent to 198 million euros, or $259.5 million, while the earnings before interest and taxes (EBIT) margin rose to 12.9 percent from 11.8 in the same prior-year period.
Sales in the quarter increased to 1.53 billion euros from 1.41 billion euros in the prior year. Global sales rose 10.1 percent, led by Nivea Deo, Nivea Sun and Nivea Body, while Eucerin’s revenues grew 7.8 percent. Luxury label La Prairie posted a 1.2 percent sales dip. Dollar figures are converted at average exchange for the three-month period ended March 31.
Beiersdorf’s consumer division, which includes the Nivea, Eucerin and La Prairie brands, registered first-quarter sales growth of 9 percent to 1.28 billion euros, or $1.68 billion. On an organic basis, revenues increased 6.8 percent. The division’s operating profits excluding special factors spiked 18.8 percent to 164 million euros, or $214.9 million. Its EBIT margin was 12.8 percent, compared with 11.7 percent in first-quarter 2011.
Top markets for Beiersdorf’s consumer division included Latin America, with a sales uptick of 16 percent, primarily due to growth in Brazil. The zone including Africa, Asia and Australia recorded a revenue increase of 12.7 percent, while closer to home – in Eastern Europe – sales rose 10.3 percent, driven by Russia and Poland. In Germany, revenues gained 6 percent, while in Europe, they rose 4 percent.
Sales at Beiersdorf’s Tesa adhesive division increased 9.2 percent to 256 million euros, or $335.5 million. In organic terms, the revenues rose 7.2 percent. Tesa’s first-quarter EBIT was up 17.2 percent to 34 million euros, or $44.6 million.
Looking ahead to 2012, the group aims to improve sales from 2011. The operating EBIT margin in 2012 is expected to be around 11 percent to 12 percent both for the group and for its consumer division.m