* Q2 EBIT 217 mln eur vs Rtrs poll avg 225 mln
* Sales in Latam hit by Venezuela, Argentina
* CEO says China, Thailand, Vietnam cooling down
* Sees 2014 EBIT margin above 13 percent
* Shares drop 3.3 percent, top DAX decliner
(Adds CEO, analysts comments, background, details)
By Kirsti Knolle
FRANKFURT, Aug 7 Nivea skin cream maker
Beiersdorf reported lower-than- expected quarterly
results and struck a slightly more cautious approach for its
full year outlook as growth in once promising emerging markets
Consumer goods companies like Beiersdorf, L'Oreal
and Unilever had previously seen growing
demand from increasingly brand-conscious consumers in Asia,
Eastern Europe and Latin America as a way to compensate for
saturated Western European markets.
"Markets are cooling down dramatically," Beiersdorf CEO
Stefan Heidenreich said on Thursday, citing in particular China,
Thailand and Vietnam.
Societe Generale said in a note to clients that Beiersdorf's
rivals were facing the same challenges but that its organic
sales growth remained among the best.
"Beiersdorf is far from alone in reporting a slowdown in
emerging markets," Societe Generale said.
Unilever cited weaker emerging markets, as well as declining
prices in developed ones, as it missed second-quarter sales
expectations. French peer L'Oreal felt the slowdown too.
Making up for disappointment in emerging markets,
Hamburg-based Beiersdorf reported a 2 percent sales increase in
Europe in the three months to end-June and said business in its
home market, Germany, was developing very well.
That echoed comments from L'Oreal, which said it had enjoyed
the strongest growth in western Europe since 2007 in the first
Overall Beiersdorf, which also makes La Prairie luxury skin
care creams and Labello lip balm, reported second-quarter
earnings before interest and tax (EBIT) of 217 million euros
($290 million) and sales of 1.575 billion, against forecasts for
225 million and 1.59 billion in a Reuters poll.
Its shares were down 3.3 percent at 1215 GMT, making them
the second biggest decliner on the DAX index of German
While Beiersdorf's business in China slowed partly due to
current restructuring, it had to grapple with foreign exchange
controls in Venezuela and inflation in Argentine.
The world No. 5 in beauty and personal care products said
Latin American sales at its main consumer division were up 5.1
percent when adjusted for currency effects, but the weakness of
major South American currencies against the euro resulted in a
5.4 percent slide in sales.
Latin American sales contribute about 12 percent to
Beiersdorf's group sales.
"Given the highly protectionist tendencies in many Latin
American countries, developments are difficult to forecast for
this area," Beiersdorf said in its quarterly report.
Beiersdorf said it now expects its full year EBIT margin -
operating profit as a percentage of sales - to be above 13
percent. Its previous guidance was for a margin slightly above
the 2013 level of 13.2 percent.
The company still sees the EBIT margin of its consumer
division, which accounts for about 80 percent of group sales and
includes its skin and hair-care brands, rising to around 13
percent from last year's 12.5 percent.
For its Tesa unit, which makes industrial adhesives used in
cars, smartphones and tablet computers, the company now expects
a margin around 16 percent. It previously said it saw this
figure slightly below last year's 16.9 percent.
(1 US dollar = 0.7475 euro)
(Reporting by Kirsti Knolle; Editing by Marilyn Gerlach/Ruth