Higher prices boost profits for Nivea maker Beiersdorf
Earnings increased 17% to €253m in the three months through June, says company
Beiersdorf widened its operating margin by more than a percentage point to 14.9 per cent, helped by price increases. Photograph: Alan Betson
Earnings before interest and taxes, excluding some items, increased 17 per cent to €253 million in the three months through June, the company said on Wednesday.
The maker of cosmetics, shower gels and over-the-counter bandages widened its operating margin by more than a percentage point to 14.9 per cent, helped by price increases.
Beiersdorf chief executive Stefan Heidenreich has hired a new finance chief and is revamping familiar products to stay competitive in a sluggish global market for personal-care products.
The company reiterated its forecast for 3 to 5 per cent organic sales growth this year, even after the first-half increase was 1.4 per cent, missing analysts’ 2.3 per cent estimater.
A price increase the company enacted in the middle of the first quarter is helping bolster margins this year, Pierre Tegner, an analyst at Natixis Securities SAS, said in a note.