BERLIN-Weak market conditions, especially impacting its Tesa adhesives division, sent Beiersdorf’s after-tax profits plummeting 40 percent to 89 million euros, or $121.2 million, in second-quarter 2009.
All dollar figures are converted from the euro at average exchange for the period.
Group operative earnings (EBIT) dropped 30.5 percent to 146 million euros, or $198.9 million, while its sales slipped 4.1 percent to 1.5 billion euros, or $2.05 billion.
Beiersdorf’s key consumer business unit, including the cash cow Nivea, plus Eucerin, La Prairie and other cosmetics brands, fared better while still feeling pressure from the global economic crisis. The division’s EBIT dropped 24.3 percent to 140 million euros, or $190.7 million; excluding extraordinary factors due to the realignment of the consumer supply chain, it fell 18.6 percent. Second-quarter consumer business sales dipped 1.8 percent to 1.33 billion euros, or $1.81 billion.
In the first six months of 2009, Beiersdorf’s consumer division’s EBIT declined 20.7 percent to 284 million euros, or $379.2 million. Sales slipped 2.1 percent to 2.59 billion euros, or $3.46 billion. However, on an organic basis, the division achieved 0.3 percent growth.
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Given negative global economic developments, Beiersdorf expects full-year group sales and EBIT margin to be below last year’s levels of 5.97 billion euros, or $8.78 billion, and 11.7 percent, respectively. The consumer division’s revenues are projected to slightly exceed 2008’s level of 5.13 billion euros, or $7.55 billion, and its EBIT margin should decline.