Beiersdorf determined to outperform the economy
The north German Nivea producer Beiersdorf AG has said it remains relaxed despite the financial crisis and the absence of economic growth. The main reason, according to chairman Thomas-Bernd Quaas, is that: "In hard times, rather than experiment, people buy what they know". Sales of Nivea products have grown in double-digit terms in first half 2008 on the troubled US market and have increased by some 3% in the same period in Germany. However, Spanish and UK sales have been affected by the crisis though in some sectors have fared better than the competition.
The north German Nivea producer Beiersdorf AG has said it remains relaxed despite the financial crisis and the absence of economic growth. The main reason, according to chairman Thomas-Bernd Quaas, is that: "In hard times, rather than experiment, people buy what they know". Sales of Nivea products have grown in double-digit terms in first half 2008 on the troubled US market and have increased by some 3% in the same period in Germany. However, Spanish and UK sales have been affected by the crisis though in some sectors have fared better than the competition.
In the US the brand is only market leader in a few segments, notably in facial products for men, but here growth has been in double-digits across the range. The company estimates that in North America annual sales will tend towards the $500m mark though Quaas declined to say when the first signs of profitability would emerge. Beiersdorf has spent considerable sums in the US market on advertising and product promotion.
Overall group sales rose 11% in the first half of 2008 to just over €3.09bn with consumer division sales up some 12.4% to €2.6bn. Operating profits (EBIT) excluding special factors went up from €326m to €343m.
Sales in central and eastern Europe together improved by 11% in the reporting period as the regional market proved its role as a driver for the cosmetics business. Turnover rose in the first six months to about €180m with market share up to 19.2%. Nivea led the body care brands. Labello and the Eucerin label have also fared well with Eucerin putting on a 31% rise in sales.