30 October 2018 - Deborah Wilkes
Beiersdorf's Consumer division reported worldwide sales up by 5.6% on an organic basis in the first nine months of 2018, as the La Prairie brand recorded a rise of 46.7%.
Chief executive officer Stefan Heidenreich said La Prairie had benefited from a "strong backwind" in the market for premium skincare products this year, with strong growth of between 20% and 30% in the third quarter.
Heidenreich said sales of Beiersdorf's Nivea skincare brand had risen by 2.7%, and sales by the Derma business unit, which includes the Eucerin and Aquaphor brands, had grown by 6.3%.
By contrast, sales at the Healthcare business unit, which includes the Hansaplast and Elastoplast brands, had decreased by 1.3%, he said.
Beiersdorf said sales at the Consumer division had reached EUR4.40 billion (USD4.98 billion), representing a rise of 1.4% as reported compared to the same period a year earlier. Once a negative currency effect was stripped out, organic sales were up by 5.6%.
Sales by geographic region
The German company's sales in Europe were up by 4.7% on an organic basis to EUR2.25 billion, accounting for 51.3% of the Consumer total. Sales in Western Europe rose by 4.6% while sales in Eastern Europe were up by 4.9%.
Sales in the Americas region increased by 1.5% on an organic basis to EUR754 million, with growth of 8.1% in North America curbed by a fall of 2.6% in Latin America.
Sales in Africa/Asia/Australia grew by 9.8% to EUR1.39 billion.
The Consumer division generated 81.4% of Beiersdorf's worldwide sales in the first nine months of 2018, which were up by 6.0% on an organic basis. Growth as reported was 2.3% to EUR5.40 billion.
Beiersdorf's Tesa self-adhesive products division generated the remaining 18.6% of the company's sales, with a rise of 7.8% on an organic basis to EUR1.01 billion.
Heidenreich said both the Consumer and Tesa divisions had substantially increased sales and gained market share.
Beiersdorf is forecasting sales growth of around 5% on an organic basis for the whole of 2018. The Consumer division is also expected to report sales growth of around 5%.
De Loecker is new chief executive
Beiersdorf recently announced that Stefan De Loecker would replace Heidenreich as chief executive officer with effect from 1 January 2019. He is currently deputy chairman of the Executive Board (click here to read the News story).
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