* Q3 adj EBIT 185 mln eur vs poll avg 172 mln
* Q3 revenues 1.5 bln eur vs poll avg 1.46 billion
* Sees new products in early 2013
* Emerging markets now make up 48 pct of sales
* Shares jump 6 pct, top DAX gainer
By Victoria Bryan
FRANKFURT, Nov 2 Nivea cream maker Beiersdorf
raised its sales growth forecast for the year after a
strategy to pursue new markets and products paid off in a
larger-than-expected 30 percent rise in third-quarter profit.
Shares in the group, controlled by the Herz family, jumped 6
percent on Friday after new CEO Stefan Heidenreich said the
company's Blue Agenda plan "is starting to bear fruit" and that
group sales are now expected to rise by between 3 and 4 percent,
compared with a previous target of 3 percent.
"I'm happy with the pipeline which is coming, it looks a lot
better than what I saw in the beginning," he said, promising new
products in the first quarter of 2013.
Beiersdorf has been cutting back on unprofitable products
and Heidenreich has also put a focus on overseas markets and
launched a new round logo for the Nivea brand under the Blue
The company's shares were up 5.9 percent at 1130 GMT,
topping the DAX index of leading German companies and boosting
local rival Henkel, up 2.11 percent.
"We are aware we still have a way to go," Heidenreich told
analysts, saying it would take Beiersdorf 3 to 5 years to
achieve all the goals set out under its programme.
One of those goals is for the consumer division, which makes
up 83 percent of sales, to reach a margin of 16 percent on
earnings before interest and tax (EBIT) in the "medium term",
compared with 12.5 percent now. Heidenreich declined to give a
more exact time frame.
Heidenreich has taken a tough stance at Beiersdorf, which
was slow to catch on to emerging markets, saying in August he
would not tolerate businesses that weren't growing. He also
criticised the choice of popular singer Rihanna in advertising
campaigns for a family brand like Nivea, and said the group
previously had not introduced enough exciting new products.
Beiersdorf, which also makes luxury La Prairie skincare and
Labello lip balm, reported third-quarter sales of 1.5 billion
euros ($1.94 billion) and EBIT before special items of 185
Analysts had expected adjusted EBIT of 172 million euros on
sales of 1.462 billion, according to a Reuters poll.
It maintained a target to increase its 2012 EBIT margin to
The results follow higher-than-expected numbers last week
from Procter & Gamble, thanks to cost cuts, and Unilever
, which saw strong demand in China.
Beiersdorf has struggled in China after an acquisition there
went awry and after posting flat growth there in the first nine
months of the year, Heidenreich said he expected a return to
sales growth in 2013.
China and the United States are the two areas where
Beiersdorf needs to work hardest, he added.
It has also opened a new research and development centre in
Wuhan, China, which will be able to react more quickly to local
demands and make use of the raw materials available there.
However, the skin care products maker grew strongly in other
emerging markets, such as Russia, Thailand, and Brazil.
Sales in emerging markets rose 11.7 percent in the first
nine months and now make up 48 percent of sales at its Consumer
To tap into the Latin American market more, Beiersdorf said
it will invest 80 million euros in a new production site in
Mexico, due to come on stream in 2014.