GERMANY: Beiersdorf H1 Results Hurt By Wet Summer

Beiersdorf has reported a decline in first-half sales, hurt by a wet summer across Europe.  However, the group said it was “cautiously confident” of reaching its full-year forecast.

For the six months, sales were down 1.3% to €3.36bn, although they grew by 2.8% on an organic basis. Meanwhile, underlying operating profit was up 1% to €513m.

Sales in Europe were up 0.4% to €1.8bn (+3.2% organic), but they declined by 1.7% to €981m in Africa/Asia/Australia (+2.6% organic), and fell by 5.6% to €574m in the Americas (+2.0% organic).

The Consumer Business segment saw sales decline by 1% to €2.8bn (+3.3% organic), with operating profit rising by 3.4% to €424m.  All core brands reported growth, with Nivea sales up 4.2%, Eucerin growing by 1%, and La Prairie rising by 6.2%.

The tesa segment, however, saw sales segment by 2.7% to €560m, with organic sales up 0.2%. Meanwhile, operating profit was down 9.2% to €89m.

CEO Stefan Heidenreich said a rainy summer in western Europe had led to “substantial losses in sales” for sun cream products.  He also attributed lower sales to the Brexit decision, which hurt consumer confidence.  He added: “We stick to our position that things won’t get much better but we’ve already adjusted ourselves to that reality”.