Skin care brands boost Beiersdorf in difficult market environment
In its 2015 earnings announcement the German firm reported organic sales growth of 3.0% increasing both sales and earnings. In nominal terms, sales increased by 6.4%, from €6.285 billion to €6.686 billion.
The stand-out performer here was the Consumer Business segment, which also includes the La Prairie brand, which generated sales growth of 3.6%, following a strong second half of the year, increasing sales by 5.7%, rising in nominal terms by 6.5% to €5.546 billion.
Looking at the company’s three main cosmetics brands, Nivea increased sales by 4.5%, Eucerin by 5.4%, and La Prairie by 1.2%.
Due to its solid performance, the Hamburg-based manufacturer expects the Consumer Business Segment to outperform the market in 2016 with sales growth of 3-4%, in line with overall Group sales.
“Beiersdorf was successful in 2015. Once again, we were able to increase our sales and earnings. We gained market share in our relevant markets and further improved Beiersdorf’s competitiveness and efficiency,” says Stefan F. Heidenreich, company CEO.
“Our results in 2015 clearly show that we have made Beiersdorf more resilient and that we continue on a sustainable, profitable growth path even under challenging economic conditions. This is a solid foundation for further economic success in 2016”.”
Beiersdorf increased organic sales in every region, and although there wasn’t great news in Western Europe, sales in Russia and the Americas helped boost the figures.
In Europe, Beiersdorf strengthened its market position, with sales up 1.3%. Western Europe saw a slight sales decline, but this was offset by Eastern Europe, where sales shot up 7.9% thanks to a good performance in Russia.
Once again, Latin America performed particularly well, increasing sales by 10.9%; while North America sales were also up, giving the Americas region significant sales growth of 8.4%.
In the Africa/Asia/Australia region, sales grew by 4.8%, based on the continuous stabilization of sales in China and the dynamic performance in Japan and India.