Flagship brand Nivea drives Beiersdorf results

By Katie Bird

- Last updated on GMT

Related tags: Sales growth, China

Good performance from Nivea helped keep Beiersdorf’s results up although costs relating to its Chinese operations may affect profits before the year is out.

The Germany-based company reported 8.5 per cent organic sales growth with sales reaching €4.5bn for the nine months ending September 30.

Consumer segment leads the way

The consumer business segment performed better than the company’s adhesives business unit tesa, reporting a 10.3 per cent growth in sales in comparison to a 3 per cent increase.

Within the sector, the jewel in the company crown was the Nivea portfolio with strong growth in the brand’s male, deodorant and hair care ranges. The company has also recently launched Nivea Visage Expert Lift, an anti-ageing range.

According to the company, the Eucerin and La Prarie brands also performed well with a number of new product launches.

Commenting on the nine month figures chairman of the executive board Thomas B. Quaas highlighted the fact that the group’s growth figure is significantly ahead of market growth of 3 per cent.

As in previous quarters, the emerging markets proved to be fertile territory for the company.

Sales for Africa Asia and Australia grew 32.7 per cent, excluding the positive effects currency had on the figures, with China and South Africa leading the way.

Nivea was again a star performer particularly in China, although sales of the flagship brand in Japan slowed, particularly the body range.

EBIT to suffer from Chinese operations

However, the impressive sales growth in the region was not translated into EBIT growth due to marketing expenses related to the recently acquired Chinese hair care business C-Bons.

The company paid €296.5bn for the majority stake in the business this time last year and announced the intention to invest heavily in the business.

The investment in the Chinese market will weigh on performance outside of the region, according to the company, which warns that as a result the EBIT growth for the consumer segment as a whole for the year will be lower than sales growth.

But even in the shadow of gathering recessionary clouds the company maintains that it will meet its previous predictions of 8 per cent sales growth for the full year.

Related topics: Business & Financial

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