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Emerging market demand boosts Beiersdorf results as home market stutters

By Andrew MCDOUGALL , 01-Feb-2013

The Nivea skin care maker announces solid 2012 results after increased demand in emerging markets is offset by the weak economic climate in the company’s home European markets.

The Beiersdorf Group saw company’s sales rose by 4.7 per cent in organic terms in the past fiscal year according to preliminary figures, as sales increased by 7.2 per cent to €6,040 million.

Once again, the German manufacturer’s three core brands – Nivea, La Prairie and Eucerin – all posted positive figures; with the former continuing its fine form in most markets.

“On the whole, we are satisfied with 2012,” says Stefan Heidenreich, CEO of Beiersdorf. “We have strengthened our Nivea core brand and gained market share in many countries.”

Emerging saviour

The Consumer Business Segment increased organic sales by 4.9 per cent, as sales rose to €5,048 million.

The segment recorded slight growth in Europe with sales of Nivea in Germany on a level with the previous year.

Sales in Western Europe, excluding Germany, were down on the prior year, as expected, due to the the streamlining of Beiersdorf’s product range in 2011, as well as the effects of the weak economy.

The developing markets shone through, however as the company generated strong sales growth in Eastern Europe, in particular in Russia and Poland.

Sales in Latin America also developed well, with Brazil leading the pack; and strong growth in the Africa/Asia/Australia region, also helped to make up for Western Europe’s struggles.

Steps for the future

“These are important first steps on the road to a successful economic future for Beiersdorf. It is important that we hold our course in the coming years and systematically continue the change process we have started,” adds Heidenreich.

Having been commended for its use of social media to engage consumers, and the announcement of a new pack design to add more consistency to its Nivea brand , the company hopes that the strong performance continues in 2013.

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