Beiersdorf takes a hit following range rationalisation
First effects of product range sort out
A streamlined and reduced product range has affected Beiersdorf's first quarter 2011 sales, with consumer product sector revenue down 1.6% at €1.1bn. The company says the results reflect the first effects of the product range sort out.
Nivea sales were down 1.1% in the wake of decisions affecting make-up and hair care products. Sales of deodorants and products in the Nivea for Men range in contrast showed strong growth. On the company's German domestic market consumer product sales fell 5.8% after Nivea make-up products were withdrawn. Sales of the Eucerin and Florena ranges were also down while Nivea Visage and Nivea Shower products expanded their sales.
Beiersdorf's total sales for the quarter reached €1.4bn with pre-tax profits of €167m. This compares favourably with market expectations of profits of around €158m. The group is maintaining its sales forecast for the year as a whole though the profit margin on consumer products is set to be lower than in 2010.