Beiersdorf's H1 consolidated after-tax profit increased to €258M compared with €249M the previous year, attributed to momentum generated by NIVEA campaign in Q2; sales were up 1.9% year-over-year to €2.90B

HAMBURG , August 4, 2011 (press release) – NIVEA’s 100th anniversary celebrations contributed to a strong performance by Beiersdorf’s Consumer business. The Group recorded organic sales growth of 2.6% in the first half of 2011. At current exchange rates, Group sales were up 1.9% on the previous year, at €2,901 million (previous year: €2,846 million). The operating result (EBIT) excluding special factors amounted to €350 million (previous year: €385 million). As a result, the EBIT margin was 12.0% (previous year: 13.5%). Consolidated profit after tax increased to €258 million (previous year: €249 million).

Thomas-B. Quaas commented on the first half of the year as follows: “The campaign to position NIVEA for the future and mark the brand’s 100th anniversary generated positive momentum at retailers and among our consumers in the second quarter. The performance of our skin and body care business shows that our ‘Focus on Skin Care. Closer to Markets’ strategy is having the desired effect. tesa continued its strong sales growth. Overall, our business in the first half of the year was in line with our planning.”

The Consumer business segment increased organic sales by 1.3% in the first six months of 2011. Nominal sales amounted to €2,431 million (previous year: €2,417 million). The operating result excluding special factors totaled €294 million (previous year: €327 million), while the corresponding EBIT margin was 12.1% (previous year: 13.5%).

Performance in Europe was affected the most by the streamlining of the product range and the exit from the NIVEA Make-up business; however, in the second quarter it also profited from the campaign to mark NIVEA’s 100th anniversary. Sales amounted to €1,527 million (previous year: €1,537 million). Sales in Germany were 0.7% below the previous year, while sales in the other Western European markets declined by 2.0%. Some countries were unable to match their prior-year sales due to the impact of the streamlining measures, among other things. However, the United Kingdom and Austria recorded strong growth. The Eastern Europe region saw an increase in sales of 2.5%, with Russia in particular posting a healthy trend.

Sales in the Americas region increased by 12.5% to €405 million (previous year: €374 million). North America recorded a 9.7% growth rate, while sales in Latin America were up by as much as 14.3%. Argentina generated the best growth rate here, although all other key markets also saw excellent increases.

Sales in the Africa/Asia/Australia region declined by 0.6% to €499 million. Africa experienced a particularly healthy sales trend. Japan also saw extremely strong sales growth, with the 8x4 business being boosted significantly by a relaunch. In the Middle East, the effects of the political unrest in a number of Arab countries were felt in the second quarter. Sales in China were well below the 2010 figure due to the reorganization of the business structures there.

Sales by the tesa business segment grew by 9.8% in the first half of 2011 to total €470 million (previous year: €429 million). The industrial segment in particular recorded continuing sales growth from customers in the automotive and electronics industries. EBIT amounted to €56 million in the first six months (previous year: €58 million). The EBIT margin was 11.9% (previous year: 13.6%).

Beiersdorf confirms outlook for 2011 and provides further details

Slight sales growth is expected at Group level. The consolidated EBIT margin from operations is likely to be between 10 and 11% in 2011, while the corresponding return on sales after tax is forecast at between 7 and 8%.

Sales growth in the Consumer business segment will continue to be significantly affected by the streamlining of the product range. However, growth in the core areas is expected to more or less offset these effects. As a result, the business segment is aiming to generate sales that are on a par with 2010 levels. The goal is an EBIT margin of around 10%–11%.

tesa anticipates that sales growth in both its industrial and consumer business customer segments will be slightly in excess of the market in 2011 and is expecting an EBIT margin of significantly more than 11%.

About Beiersdorf AG

Cosmetics company Beiersdorf AG is based in Hamburg, Germany, and has around 18,000 employees worldwide. Its sales in 2010 amounted to €5.571 billion (using the new sales presentation format). The company has been listed on the DAX since December 2008. Beiersdorf’s NIVEA is the world’s largest skin care brand. Other names in its successful international brand portfolio include Eucerin, La Prairie, Labello, 8x4, and Hansaplast/Elastoplast. Subsidiary tesa SE is one of the world’s leading producers of self-adhesive products and system solutions for industry, craft businesses, and consumers. Beiersdorf has around 130 years of skin care experience and is known for its innovative and high-quality products.

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