GERMANY: Beiersdorf Q1 Growth Hurt By Tesa

Beiersdorf has reported weak sales figures for its most recent quarter, hurt by weakness at its Tesa adhesives division.

For the first quarter (ending 31 March), sales were up 2.4% on an organic basis (-1.9% to €1.67bn), coming in below analysts’ estimates.  Sales at Tesa were down 5.9% to €277m (-3.2% organic), while the Consumer products division recorded a 1.1% decline to €1.4bn (+3.6% organic).

Sales in Europe were up 0.9% to 888m (+3.5% organic), but they fell by 8.5% to 287m in the Americas (-0.5% organic), and by 2.7% to 498m in Africa/Asia/Australia (+2.4% organic).

CEO Stefan Heidenreich warned that Tesa might continue to drag on group results, noting: “We do not expect to see a short-time recovery in Asia’s electronics business and there is not much we can do about it as this is completely market driven”.

However, Beiersdorf confirmed its full-year forecast of sales to grow by 3%-4% on an organic basis.