Beiersdorf's profit after tax down to €259M in 2011, from €326M in 2010, on weak sales in European countries that didn't match prior-year levels due to streamlining of product range; sales up to €5.63B, from €5.57M a year ago
January 25, 2012
– Beiersdorf Group’s sales for fiscal year 2011 increased by 2.1% compared with the previous year on a like-for-like basis. The Group’s preliminary figures show nominal sales growth of 1.1% to €5,633 million (previous year: €5,571 million). The operating result (EBIT), excluding special factors, amounted to approximately €646 million (previous year: €699 million), while the corresponding EBIT margin was 11.5% (previous year: 12.5%).
The Consumer business segment’s sales increased organically by 1.1% to €4,696 million (previous year: €4,698 million). Performance in the global consumer markets differed substantially. Business in the United Kingdom and Russia was extremely positive, while sales in other European countries did not match prior-year levels due to the streamlining of the product range, among other things. The segment’s growth in Latin America was particularly strong. In the Africa/Asia/Australia region, sales were up only slightly on the previous year, due to the impact of the reorganization of business structures in China. Preliminary Consumer EBIT, excluding special factors, was approximately €537 million (previous year: €599 million), corresponding to an EBIT margin of 11.4% (previous year: 12.7%).
The tesa business segment again performed extremely well in 2011, growing by 7.9% on a like-for-like basis and recorded sales of €937 million (previous year: €873 million). Business with innovative specialty products for the fast-growing Asian electronics industry and the automobile industry in the US, which also performed extremely well, were key sources of momentum. Preliminary EBIT in the tesa business segment rose to approximately €109 million (previous year: €100 million). As a result, the EBIT margin was 11.6% (previous year: 11.4%).
“We realigned and strengthened our Consumer business in 2011 by comprehensively streamlining our product assortment and thanks to the global marketing measures relating to the 100th anniversary of our NIVEA brand. Parallel to this, we saw excellent sales growth at tesa. Towards the end of the fiscal year, we took a second step in the form of fundamental decisions on the regional realignment of our Consumer business that will improve our future profitability considerably. Optimally aligning our structures with the regions and markets will significantly increase our competitiveness in the future,” said Thomas-B. Quaas, Chairman of the Executive Board of Beiersdorf AG.
All figures for 2011 are preliminary and have not been audited. The year-end financial statements for the Beiersdorf Group and Beiersdorf AG will be prepared by the Executive Board at the beginning of February and approved by the Supervisory Board at the end of that month. The Annual Accounts Press Conference and the Financial Analyst Meeting will take place on March 1, 2012, in Hamburg.
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. The Beiersdorf subsidiary tesa SE is one of the world’s leading manufacturers of self-adhesive products and system solutions for the industrial, commercial, and consumer segments. Beiersdorf has almost 130 years of skin care experience and is well-known for its innovative and high-quality products.
Editor's Note: In an omitted table, Beiersdorf's net income fell to €259 million in 2011 from €326 million in year-ago period. The company posted revenue of €5.63 billion compared with €5.57 million a year ago.