Nivea owner Beiersdorf reports strong Q1 results
German consumer goods company Beiersdorf, which owns the Nivea brand, has recorded group sales growth of 6% in the first quarter of 2019.
According to the company, in nominal terms sales rose by 7.8% year-on-year to €1.947 billion, ahead of average industry forecasts of €1.9 billion, Reuters reported.
“Beiersdorf had a solid start into the first three months of 2019 in both business segments – Consumer and tesa,” commented CEO Stefan De Loecker. “Sales growth in the Consumer Business Segment outperformed the market and was broad-based, while tesa continued to grow despite a difficult market environment.
“Recognising local consumer and market trends and responding to them on an individual basis helped us boost sales in all regions. To increase our above-market growth and penetration over the long term despite the disruptions in the market, we are now focusing on executing our strategic program C.A.R.E.+.”
Beiersdorf launched its new C.A.R.E.+ business strategy in February 2019. The multi-year investment initiative will see the company invest an additional €70-80 million per year into internationalisation, innovation, digitalisation and workforce upskilling, according to a release from the company.
“We have embarked on the implementation of our strategic priorities with a sense of urgency and high level of commitment. In light of this, we are looking to the future with optimism, despite the continuing economic risks, and confirm our guidance for 2019,” he added.
The company’s Nivea brand, which includes deodorant aerosols, achieved sales growth of 4.9% in the first quarter of the year.
Beiersdorf expects full-year 2019 sales growth of 3-5%, with a consolidated operating EBIT margin of approximately 14.5%.