Nivea owner steals march on rivals as sales surge

Long-lasting Nivea body milk and other new products helped German skin care group Beiersdorf beat quarterly sales forecasts and raise its full-year target.

Third quarter figures from the German consumer goods company contrasted with weaker-than-expected quarterly sales at rival Unilever, whose Dove products compete with Nivea, as well as the UK’s Reckitt Benckiser.

“After being off the radar for most of the year, we believe these strong numbers will make the market sit up and take notice,” said Morgan Stanley analysts.

Beiersdorf’s organic sales — excluding exchange rate effects as well as the impact of acquisitions and divestments — jumped 8.6% in the third quarter, well ahead of market expectations of 5.4%.

The Hamburg-based company said it now expected sales to increase 4% to 5% this year, up from 3% to 4%.

Beiersdorf chief Stefan Heidenreich said that investments in new products were now filtering through to its revenues.

Third-quarter sales were helped by double-digit growth in the Africa/Asia/Australia region, which accounts for nearly a third of group revenue.

“Business is good in India, China, Japan. It seems we have planted some good roots in the past that are now more and more paying off,” said Mr Heidenreich.

In China, Beiersdorf has focused on boosting online sales, which Heidenreich said had lifted revenues there, without providing details.

Reuters