Beiersdorf with strong performance throughout 2017 further acceleration in fourth quarter

Stocks and Financial Services Press Releases Friday January 12, 2018 10:04
Bangkok--12 Jan--Spark Communications
  • Organic Group sales up 5.7% (nominal 4.5%)
  • Consumer achieves organic sales growth of 4.7% (nominal 3.4%)
  • tesa boosts sales by 10.6% (nominal 9.7%)
  • Group EBIT guidance confirmed
  • Profit after tax margin expected to be around 10%

Beiersdorf once again recorded strong sales growth in 2017 while further increasing market share. The business segments Consumer and tesa both contributed to this dynamic performance. Beiersdorf's sales grew steadily throughout the early months of 2017, followed by a strong increase against an industry trend in the third quarter and further accelerating sales growth in the fourth quarter. According to preliminary, unaudited figures, organic Group sales were up 5.7%. In nominal terms, they rose by 4.5%, from EUR6.752 billion to a record EUR7.055 billion. The Consumer Business Segment achieved organic sales growth of 4.7%. tesa underlined its excellent market position by increasing sales by 10.6%.

Beiersdorf expects the EBIT margins for the group and for the Consumer business segment to be slightly above previous year, and for the tesa business segment to be significantly above last year's. Profit after tax margin is expected to be around 10%. The difference compared to last year is driven by the absence of one-time profits incurred in 2016 as well as losses from FX and financial investments in 2017. Final income and earnings figures will not be available until the 2017 financial statements are prepared.

"Beiersdorf is very well positioned with its business model and internationally renowned brands, as is clearly shown by our sales performance in 2017. A high level of efficiency and our ability to adapt to changes in the markets quickly are key assets of our company. Our achievements are the result of hard work done over the past few years and the systematic implementation of our business strategy. While the global markets are expected to remain volatile and challenging, we have good reason to be cautiously optimistic as we start into 2018," said Stefan F. Heidenreich, CEO Beiersdorf AG.

Consumer Business Segment

The Consumer Business Segment increased organic sales by 4.7% in 2017. In nominal terms, sales were up 3.4%, from EUR5.606 billion in the previous year to EUR5.798 billion. Organic sales growth was generated in all regions. All Beiersdorf core brands contributed to the increase in sales – NIVEA, Eucerin, Hansaplast, and La Prairie.

tesa Business Segment

tesa achieved organic sales growth of 10.6% in 2017. In nominal terms, sales were up 9.7%, from EUR1.146 billion to EUR1.257 billion. This successful performance was fueled by direct business with industry customers and the trade markets segment, which includes the segment's end-customer business.

All figures for financial year 2017 are preliminary and still subject to audit. The final figures for the year will be released at the Annual Accounts Press Conference and the Financial Analyst Meeting in Hamburg on March 1, 2018.

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