Nivea brand boosts Beiersdorf Q1 sales

By Louise Prance

- Last updated on GMT

Related tags: Cent, Business

Strong sales in its leading Nivea brand has boosted German personal
care player Beiersdorf's Q1 sales - following increases in sun
products, deodorants and male grooming across all regions.

Overall sales were up 10.9 per cent against the comparable quarter in 2006, from €1.27bn to €1.39bn. Likewise, earnings before interest and tax (EBIT) grew 12.5 per cent to €182m, excluding €10m costs incurred for a refurbishment of its consumer supply chain in Europe. Overall earnings were boosted by a strong performance in the company's consumer segment, which saw a rise of 11.4 per cent to reach €1.174bn adjusted to take into account currency translation effects. Sales were driven by the Nivea brand, which increased 14 per cent. Nivea deodorant, Nivea for men, Nivea body and Nivea sun all helped drive sales, as did the lucrative La Prairie and Eucerin brands, which posted above average growth rates particularly in Western Europe. Sales of consumer products recorded high growth rates in Eastern Europe, a strong emerging market for many cosmetic manufacturers, which increased a massive 36.1 per cent to €141m. Most markets in this area recorded double-digit growth rates including Russia and Poland. Western Europe had a more moderate growth spurt, with consumer sales rising by 5.9 per cent to reach €464m - aided by the continued success of the Nivea Visage DNAge skin care range that was launched in 2006. Africa, Asia and Australia also posted booming sales figures for consumer products, rising 32 per cent to €163m. As predicted China and Thailand were the prime drivers in this area, however, sales in Japan were disappointing and were slightly down from the comparable quarter in 2006 due to declined sales in the Nivea body and Nivea sun ranges. The Nivea body range contributed to a 10.2 per cent increase to €92m in the North American market. Likewise the Latin American market posted an increase of 19.8 per cent to €75m, with key markets such as Mexico, Brazil and Argentina being key drivers to this area. The company's Tesa division saw an increase of 8.4 per cent to €213m, with growth driven in particular by customers in the electrical and electronics industry. In order to further growth of the business, Beiersdorf is said to be looking to sign an exclusive agreement with C-Bons, a personal care company within China, in order to develop its presence in this market, forecast to be the most dynamic in the next five years. As part of the company's consumer business strategy it is expected to invest exclusively in C-Bons' hair care and hair styling business in China. Likewise, the company is continuing to seek a buyer for its logistics centre in Hamburg as part of its continued realignment of its consumer supply chain in Germany.

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