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Reuters
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Jan 11, 2011
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Nivea firm Beiersdorf unhappy with 2010

By
Reuters
Published
Jan 11, 2011

Jan 11 - Nivea skin cream maker Beiersdorf said it was unhappy with the performance of its core consumer business unit in 2010, which saw sales rise just 1.6 percent.

Beiersdorf, Nivea
Nivea; Beiersdorf

"Despite clear successes in individual regions, we are not satisfied with the overall performance by the Consumer business segment in 2010," Chief Executive Thomas Quaas said in a statement on Tuesday.

Beiersdorf had announced before Christmas plans to invest in its core Nivea skin care products and slim down its make-up and haircare lines, resulting in two profit warnings in the space of a week.

The company, which also makes Labello lip balm and the La Prairie luxury skincare range, on Tuesday reported preliminary full-year sales up 3.1 percent on a like-for-like basis and earnings before interest and tax of 697 million euros ($902.7 million).

Adjusted for costs of writedowns in China and restructuring expenses, earnings before interest and tax (EBIT) came in at 579 million euros. Analysts had expected 2010 operating profit to rise 15.7 percent to 679 million euros and sales to rise 6.8 percent.

Beiersdorf did not give a 2011 outlook on Tuesday. It had said in December that it expected its 2011 group margin -- EBIT as a percentage of sales -- to fall compared with 2010, with sales to be flat.

The company is due to publish its full 2010 results on March 3.

(Reporting by Victoria Bryan)

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