Beiersdorf’s cautious despite strong FY results | Progresiv

Beiersdorf has offered a cautious forecast for 2018, despite reporting a strong set of results for its last fiscal year. For the year, sales were up 4.5% to 7.1 billion euros (+5.7% organic basis), with underlying operating profit up 7.2% to 1.1 billion euros.

Sales at its Consumer unit grew by 4.7% on an organic basis to 5.8 billion euros, with operating profit up 6.3%. Meanwhile, its tesa adhesives unit recorded a 10.6% rise in organic sales to 1.26 billion euros, with underlying operating profit up 11.3%.

Beiersdorf said its main consumer brands all recorded solid growth – NIVEA increased sales by 4.5%, Eucerin by 3.4%, Hansaplast by 3.8%, and La Prairie by 11.5%.  It was also helped by growth in all geographical regions.

For 2018, Beiersdorf expects overall sales to grow by 4%, with operating profit margin set to remain at current levels.  The Consumer unit is expected to see sales grow by 4%-5%, with a slight rise in operating margin, while the tesa unit is forecast to see sales grow by 3%-4%, with operating margin set to decline slightly.

However, CEO Stefan Heidenreich said he expects Beiersdorf to top its forecasts, noting that business was very good in January and February. He noted: “Beiersdorf is in a strong position … Our high levels of efficiency and flexibility are key factors to our success. We therefore look ahead to the 2018 financial year with confidence and cautious optimism.” (www.kamcity.com)