* Q3 operating profit 216 mln euros vs Reuters poll at 195
* Company lifts sales outlook for 2013 to 6-7 pct growth
* CEO says gaining market share in both divisions
* Says expects good end to year
* Shares rise to record high, biggest gainer on DAX
By Victoria Bryan
FRANKFURT, Nov 5 Beiersdorf, the maker
of Nivea creams and lotions, said it was gaining market share
from rivals as new products at its consumer and adhesives
divisions boosted profits and prompted it to increase its
outlook for the year.
Beiersdorf reported a 17 percent jump in third-quarter
operating profit on Tuesday, year-on-year, after it said late on
Monday that it was upgrading its sales and profit outlook for
"We increased market share in many countries, driven by
successful product innovations in both divisions," Chief
Executive Stefan Heidenreich said.
"In short, our brands are back."
Heidenreich said the Nivea in-shower moisturiser, a new
range of anti-ageing creams and its deodorants had been standout
sellers over the last few months.
While the consumer business, which includes the La Prairie
skin care and Labello lip balm brands, accounts for 82 percent
of sales, Beiersdorf also makes industrial adhesives used in
cars, smartphones and tablet computers.
Heidenreich said a recovery in the automotive industry,
especially in Germany and North America, and new consumer
electronics products by Asian manufacturers had boosted business
at the adhesives unit.
Beiersdorf's shares were up 5.5 percent at 73.52 euros
($99.33) at 1137 GMT, just off a record high hit earlier of
73.69 euros. They were the biggest gainer on the DAX index
, which was down 0.4 percent. Shares in local rival
Henkel, which reports next week, gained 1.5 percent.
Overall, Beiersdorf reported third-quarter earnings before
interest and tax (EBIT), excluding one-off costs, of 216 million
euros, exceeding the average forecast of 195 million by analysts
in a Reuters poll.
"The results are good. They've caught the market on the back
foot," said analyst Heino Ruland of Ruland Research.
Before Heidenreich took over in 2012, Beiersdorf had been
losing market share to rivals in its home market of Europe and
had failed to gain a foothold in China and the United States.
Under Heidenreich's restructuring plan, Beiersdorf has cut
back on unprofitable consumer ranges, closed lower-margin
adhesives businesses and introduced innovative new products.
The main rivals to the firm's consumer business also include
L'Oreal and Unilever. Beiersdorf expects the
division's global sales to rise by 6-7 percent this year - which
it said would take market share off rivals given that the market
is expected to expand by 3-4 percent.
It said sales at its Tesa adhesives division were also
expected to rise 6-7 percent this year, against market growth of
Heidenreich said the group had gained around 3-4 market
share percentage points at the consumer business in China this
year and that in the United States, new product launches should
drive growth next year.
Heidenreich left the door open for further possible
increases in the firm's 2013 guidance. Beiersdorf increased its
sales outlook twice in the last few months of 2012
"We are having a good run, but we try to be on the cautious
side," he said. He said the group was also confident of a good
end to the year in Europe.
At the adhesives division, core profit jumped to 57 million
euros and sales rose to 269 million euros in the three months to
end-September, against expectations for 35.7 million and 253
million in a Reuters poll.
Its consumer division reported sales of 1.24 billion euros
in the quarter, just below the average forecast for 1.28 billion
and in-line profit of 159 million.