Beiersdorf Second-Quarter Profit Beats Estimates on New Products
Beiersdorf AG, the maker of Nivea cream and Labello lip balm, reported earnings that topped analysts’ estimates, aided by new twists on products and a boost from currencies.
Earnings before interest and taxes, excluding some items, increased 17 percent to 253 million euros ($275 million) in the three months through June, Beiersdorf said Wednesday, beating the 246 million-euro consensus estimate of analysts surveyed by Bloomberg. Sales rose 7.7 percent to 1.7 billion euros.
The Hamburg-based maker of cosmetics, shower gels and over- the-counter bandages is revamping familiar products to stay competitive in a sluggish global market for personal-care products. The dollar has gained 11 percent against the euro this year, lifting the roughly 7 percent of consumer sales Beiersdorf gets in North America when translated into the company’s home currency.
Beiersdorf has introduced a broader line of men’s shower gel and face cream, Black & White deodorant it says won’t stain monochromatic clothes, and Labello in fruit flavors to combat a broader slowdown in the personal-care category.
Global sales of beauty and personal care products grew 3.6 percent last year, compared with 5.2 percent in 2013, according to Sanford C. Bernstein.
The company reiterated its forecast that revenue this year will increase 3 percent to 5 percent on a so-called organic basis, which excludes currency shifts, acquisitions and divestments. That compares with growth of 4.7 percent in 2014.
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