Beiersdorf AG (BEI), the maker of Nivea skin cream, raised its annual profitability forecast after reporting second-quarter profit that matched analysts’ estimates as sales rose in emerging markets.
The company now expects earnings before interest and taxes as a percentage of sales to be about 12 percent, higher than a previous forecast of between 11 percent and 12 percent. Adjusted Ebit rose to 192 million euros ($235 million) from 183 million euros in the year-earlier period, the Hamburg-based company said in a statement today. The average estimate of 11 analysts surveyed by Bloomberg was 191.5 million euros.
“We are on the right track with our moves to strengthen our brands and innovative capabilities as well as expanding our presence and impact on the emerging markets,” Chief Executive Officer Stefan Heidenreich said in a statement today.
Beiersdorf, which gets almost 40 percent of revenue outside Europe, said revenue in the Americas gained 13 percent, while sales in Africa, Asia and Australia advanced 19 percent. German companies are tapping growth in emerging markets as the sovereign-debt crisis curbs demand in the euro area, where economic confidence is at a three-year low.
Sales dropped to 1.53 billion euros from 1.5 billion euros a year earlier, the company said. That missed the 1.55 billion- euro average estimate of 17 analysts. Beiersdorf expects sales growth of about 3 percent this year.
To contact the reporters on this story: Julie Cruz in Frankfurt at firstname.lastname@example.org
To contact the editor responsible for this story: Celeste Perri at email@example.com