Aug 4 * Q2 sales 1.495 bln eur vs Rtrs poll
avg 1.48 bln
* Q2 adj EBIT 183 mln eur vs poll avg 172 mln
* Sees slight increase in 2011 sales
* Shares rise over 5 percent
(Adds CEO comment, shares, Tesa unit)
By Victoria Bryan
FRANKFURT, Aug 4 Beiersdorf reported a
return to growth at its core consumer division in the second
quarter as a massive marketing drive to entice customers back to
its Nivea skincare brand took effect.
Beiersdorf, which has launched a 100th anniversary campaign
for Nivea featuring singer Rihanna, said sales at the consumer
division rose 1.6 percent after having fallen by the same
percentage in the first quarter.
Shares in the group jumped 5.6 percent to head the Dax
blue-chip index , trading at 45.01 euros at 0918 GMT.
The group, whose other brands include luxury skincare line
La Prairie and Labello lip balm, also tweaked its sales guidance
for the year, saying it now expects slight sales growth,
compared to a previous guidance for flat revenues.
"The Nivea turn-around story (is) clearly on track," said
Nomura analyst Guillaume Delmas, adding that the group's 2011
guidance now looks conservative as it implies a fall in
second-half organic sales of 1.4 percent.
The company said higher-margin suncare products and good
deodorant sales also helped to make up for its decision to stop
selling Nivea make-up as part of plans to rejuvenate sales and
Chief Executive Thomas Quaas said he had not noticed any
significant impact on the company's sales in those European
countries that are struggling with debt crises.
"Of course business is not exactly amazing, but we are not
seeing any massive slumps either," he told journalists,
referring to Greece and Italy.
Beiersdorf was losing market share last year and has set
aside 270 million euros ($384.8 million) in a turnaround package
to invest in skincare and strip out unprofitable make-up and
haircare lines, plus a 1 billion euro marketing budget for Nivea
In the second-quarter, sales rose to 1.495 billion euros,
while comparable earnings before interest and tax (EBIT) fell 8
percent to 183 million euros.
Analysts were expecting second-quarter sales of 1.48 billion
euros and comparable EBIT of 172 million, according to a Reuters
At adhesives business Tesa, which accounts for 15
percent of revenue, underlying earnings fell to 27 million euros
from 33 million, hit by strong rises in input materials such as
oil and plastic, as well as supply chain bottlenecks.
Quaas said he was seeing no easing in the pressure on Tesa.
(Reporting by Victoria Bryan; editing by Sophie Walker)