Beiersdorf AG (BEI), the maker of Nivea hand cream, raised its full-year sales forecast and said its Tesa adhesives unit is performing better than it anticipated.
Sales will rise 6 percent to 7 percent this year, the Hamburg-based company said in a statement after markets closed yesterday. Beiersdorf previously forecast revenue to increase 5 percent to 6 percent. The company also projected an earnings before interest and taxes margin of about 13 percent, compared with an earlier forecast of 12 percent to 13 percent.
Beiersdorf said its Tesa unit, which produces adhesive tapes for the electronics and automotive industries and accounts for about 16 percent of revenue, will report higher sales growth and a wider Ebit margin than it had projected.
Under Stefan Heidenreich, who has been chief executive officer since April 2012, Beiersdorf is investing in China, Brazil, Russia and other emerging economies, where the company now gets almost half its revenue. The company is also focusing on big innovations and its main product lines as part of a reorganization project dubbed Blue Agenda, which takes its name from the company’s trademark Nivea packaging.
The Tesa business is forecast to increase sales by 6 percent to 7 percent this year, compared with an earlier forecast of 4 percent to 5 percent, the company said. The unit’s Ebit margin may be about 16 percent compared with the company’s prior estimate of 14 percent.
In the first nine months of the year, organic sales rose 7.3 percent to 4.67 billion euros ($6.3 billion), while Ebit margin widened to 13.9 percent, Beiersdorf said in the statement.
The company will publish its interim report for the third quarter at 8 a.m. local time today.
The shares fell 0.6 percent to 69.74 euros in Frankfurt trading yesterday, paring the stock’s gain to 13 percent this year.
To contact the reporter on this story: Julie Cruz in Frankfurt at email@example.com
To contact the editor responsible for this story: Celeste Perri at firstname.lastname@example.org