Beiersdorf Q1 Organic Growth Boosted By Tesa Adhesives Demand
Nivea maker Beiersdorf has reported consensus-beating organic sales growth of 6.3% for the first quarter, driven by demand for adhesives in the electronics and automotive sectors.
A 23.6% organic jump in sales at its Tesa adhesives business to €397 million lifted group revenues to €1.95 billion, it said.
Organic growth at its Consumer business, which makes brands including Nivea, Eucerin and LaPrairie, stood at 2.7%, to sales of €1.55 billion.
Beiersdorf said it was 'still difficult' to make a reliable forecast for the rest of the year, reiterating its guidance for positive sales growth in both business segments and at group level.
It still expects its full-year margin on earnings before interest and tax to remain at the 2020 level in the Consumer business segment and in the group, but to fall short of the prior year at Tesa.
'In 2021, Beiersdorf anticipates positive sales growth in both business segments and at Group level,' it said in a statement. 'EBIT margin is expected to remain at prior year’s level in the Consumer business segment and in the Group (prior year Group: 12.9%; prior year Consumer: 12.3%), but to fall short of the prior year in the Tesa business segment (prior year: 15.4%).'
Last month, the group announced the launch of a new personalised skincare brand, O.W.N, which uses artificial intelligence built around a proprietary algorithm to offer bespoke skincare solutions.
The new brand, which will be sold exclusively online, aligns with the company's aim to advance digital transformation within the C.A.R.E.+ strategy, it said. [Pic: ©Piotrkt/123RF.COM]