Beiersdorf on the right track in H1 2012

Beiersdorf has released its business development statistics for the first half of 2012, which the company says is in line with expectations. Organically, group sales rose by 2.6% to €3.06bn, up from €2.90bn in the prior year period. EBIT excluding special factors increased 11.6% to €390m (up from €350m) and the corresponding EBIT margin climbed to 12.7%. According to Beiersdorf, these improved earnings resulted from positive developments in emerging markets.

Organic sales in the company’s consumer business segment grew 2.5% in the first six months of fiscal 2012. EBIT excluding special factors increased 11.3% to €327m and the EBIT margin increased to 12.8% from the prior year figure of 12.1% thanks to the successful realignment of corporate structures and processes, as well as the improvement of business in China.

All of Beiersdorf’s core brands contributed to sales growth with Nivea up 4.4%, Eucerin up 3.1% and La Prairie up 2.7%.

Strong sales growth in Eastern Europe (8.1%), Latin America (14.3%), and Africa/Asia/Australia (9.6%) mitigated declining sales in Western Europe, which dipped 4.0% and the US, which was down 2.0%.

Looking to fiscal 2012 the group says it expects full year sales growth to be approximately 3%. It has also revised its predicted operating EBIT margin to 12%, up from 11-12%.