Aug 7, 2013
Nivea maker Beiersdorf sees sales growth faster than market
Aug 7, 2013
FRANKFURT, Germany - Beiersdorf, the maker of Nivea skin creams, forecast 5-6 percent growth in sales for 2013, and said new shower and anti-ageing products were helping it gain market share.
The group said on Wednesday 2013 sales will rise faster than the market's growth of 3-4 percent. Before Wednesday's results, analysts had on average been forecasting that Beiersdorf would increase sales by just over 4 percent to 6.3 billion euros ($8.4 billion).
Under Chief Executive Stefan Heidenreich, Beiersdorf has cut back on some areas like make-up but has brought out new products, such as a moisturiser that can be used in the shower and a new anti-ageing skincare range. These products helped it gain market share in its consumer business, which brings together brands like Nivea, La Prairie, Eucerin and Labello.
But its predicted profit margin - earnings before interest and tax (EBIT) as a percentage of sales of 12-13 percent for 2013 - underwhelmed. Shares fell 2.5 percent, against a 0.4 percent fall for the DAX index of leading German shares.
Beiersdorf has previously stated it wished to improve on last year's 12.2 percent and the average analyst expectation was for 13.06 percent.
"The full-year outlook is a tad below expectations," one trader said.
The group reported total second-quarter sales rose 3.7 percent to 1.59 billion euros and earnings before interest and tax (EBIT) before special items of 219 million euros, against expectations for 1.63 billion euros and 218 million euros in a Reuters poll.
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