BERLIN: German consumer goods firm Beiersdorf reported a recovery for its Nivea skin cream on Wednesday as well as strong sales for other skincare brands and its adhesives unit after the coronavirus pandemic caused a revenue drop in the first half.
Sales for the first nine months came in at 5.7 billion euros ($6.74 billion), the Hamburg-based company said, a decline of 7.1% after stripping out the impact of acquisitions and currency movements, although third-quarter organic growth was 0.2%.
Beiersdorf shares were down 3.62% at 0841 GMT, slightly underperforming a 3.27% weaker German blue-chip index.
The Nivea brand grew 0.5% in the quarter due to high demand for shower and personal care products, stripping out the sun care business, which has been hit by a decline in tourism.
Eucerin and Aquaphor skincare brands grew 15.5% in the quarter, while the premium La Prairie brand – which makes a large part of its sales in travel retail like airport stores – stemmed its decline, although sales were still down 17%.
Sales of the Tesa adhesives unit rose 6.2%, helped by a rebound in the electronics business in Asia, even as the automotive sector continued to decline.
For the full-year, Beiersdorf said it expected a fall in sales at the rate already seen so far this year, or slightly better, while the operating profit margin should come in significantly below the level seen in 2019.
($1 = 0.8461 euros)
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