Beiersdorf sales to be hit by tesa decline and negative currency conversions
today Aug 1, 2016
The strength of the Euro and the weak performance of self-adhesive brand tesa are expected to negatively impact Beiersdorf’s first-half sales growth. The Nivea owner will need to ‘step up a gear’ to meet its sales target for the second half, said analysts.
The Hamburg-based company will announce its half year results on Thursday 4 August. Bloomberg analysts forecast a sales decline of 1.7% to 3.35 billion in the first six months.
The German company posted a 1.9% fall in sales in the first quarter, hit by the impact of negative exchange rates and the decline in sales in the Americas region. Sales in Europe, however, were up in the first quarter versus the prior-year figure.
Overall, consumer skin care brands delivered positive results in the first quarter, achieving sales growth through new products launches across most markets. Self-adhesive label tesa, however, showed a week performance as demand from the electronics industry in Asia declined considerably.
Private German bank Bankhaus Lampe forecasts Beiersdorf’s organic sales growth for the first six months of the year to reach 2.4%. According to a statement posted last year, the group expects group sales to grow by 3-4% in 2016, with the EBIT margin slightly up on the prior year.
Meanwhile, analysts on average expect half-year EBITDA to stand at 516 million euros, representing an increase of 1.5% on the prior year’s period.
Operating margin is expected to grow to 15.4%, up from 14.4%.
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