Beiersdorf continued on its consistent growth path in the first half of 2015. The company increased both its sales and earnings, and gained market share. Organic Group sales climbed 1.4%. In nominal terms, sales rose by 7.3 per cent from 3.171 billion euro to 3.402 billion euro. Group EBIT excluding special factors increased by 12.4 per cent, from 452 million euro to 508 million euro. The EBIT margin improved to 14.9 per cent, compared with last year’s 14.3 per cent. This is Beiersdorf’s best-ever result for the first six months of a year.
“Beiersdorf has continuously increased its effectiveness over the past months. At mid-year, we have exceeded last year’s excellent results. Our business strategy has proven itself in a challenging market environment. We are expecting further accelerating growth in the second half of the year,” said Stefan F. Heidenreich, CEO of Beiersdorf AG.
Consumer Business Segment
The Consumer Business Segment recorded strong growth in the second quarter, after muted business in the first three months. Organic sales growth reached 1.6% at the end of the first half of the year. In nominal terms, sales rose by 7.2per cent from 2.637 billion euro in the previous year to 2.827 billion euro. EBIT excluding special factors increased by 11.5 per cent, from 367 million euro to 410 million euro. The EBIT margin improved to 14.5 per cent, compared with last year’s 13.9per cent. Organic sales growth in the regions reflects Beiersdorf’s continued momentum: sales in Europe reached last year’s high level, despite challenging market conditions in some cases. While Eastern Europe delivered sales growth of 6.4 per cent, sales in Western Europe were down 1.4 per cent on the previous year. Strong growth rates were achieved in Russia, in particular.
Significant Sales Increase in the US
Beiersdorf recorded a significant increase in sales in the Americas region, at 8.3%. Sales rose by 4.5% in North America and by 10.7 per cent in Latin America. Brazil was the main growth driver, again generating double-digit growth.Sales in the Africa/Asia/Australia region grew by 0.6 per cent at the end of the first half of the year, following a decline in sales in the first quarter. India performed particularly well. Business in China has stabilised further over the past months as a result of the measures taken.
tesa Business Segment
tesa recorded organic sales growth of 0.1% in the first half of 2015, up slightly on the good prior-year level. In nominal terms, sales increased by 7.7 per cent from 534 million euro in the previous year to 575 million euro. EBIT excluding special factors improved by 16.1 per cent to 98 million euro, after 85 million euro last year. The EBIT margin increased significantly, up from 15.9 per cent in the prior year to 17.1 per cent.
Outlook for 2015
At Group level, Beiersdorf expects sales to increase by 3–5 per cent in financial year 2015 and the Group’s EBIT margin from operations to slightly exceed last year. In the Consumer Business Segment, above-market sales growth of 3–5 per cent is forecast. The EBIT margin from operations is expected to be up slightly against the prior-year figure. tesa is expected to generate sales growth of 1–3 per cent. The EBIT margin from operations is forecast to slightly exceed the prior-year level.
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