Beiersdorf ‘cautiously optimistic’ for 2015 as Heidenreich sticks with Blue Agenda

17-Feb-2015 - Last updated on 01-Apr-2015 at 15:36 GMT

Beiersdorf says it expects to see strong sales growth this year despite tough economic conditions, with company CEO Stefan Heidenreich stating that he is ‘cautiously optimistic’ for 2015.

The Nivea skin care maker says it expects to deliver sales growth of 3-5% and a slightly improved EBIT margin in 2015 at Group level, having continued on its profitable growth path in 2014, which sees it outperforming some of its rivals.

Blue Agenda

In a more difficult market environment, Beiersdorf recorded organic sales growth of 4.7% in the past financial year. In nominal terms, sales increased by 2.3%, from €6.141 billion to €6.285 billion.

“Beiersdorf was successful in 2014. Once again, we increased sales and earnings. We also gained market share in our relevant markets, and became more innovative and more competitive,” says Heidenreich.

“This positive performance is based on our clear and systematically implemented business strategy.”

The business strategy mentioned by the German firm’s boss is the ‘Blue Agenda’ strategy, named after Nivea’s iconic blue tin, and defines the course of its future according to Heidenreich.

This strategic program is focused on strengthening the company’s brands, increasing innovative power, expanding its presence in the emerging markets, and on its employees.

“We have achieved a level of stability that leads us to expect further growth even in more difficult political and economic conditions. This makes us cautiously optimistic for 2015,” adds the Beiersdorf CEO.

Breakdown

Both of the Consumer and tesa business segments contributed to the positive performance, Nivea, Eucerin, and La Prairie each recording growth at 6.2%, 6.0%, and 5.1% respectively; as Consumer segment sales rose by 2.1%, from €5.103 billion in the previous year to €5.209 billion, thanks to these brands.

Above-market sales growth of 3-5% is forecast for the Consumer business with the EBIT margin from operations slightly up against the previous year.

Beiersdorf also increased organic sales in all regions, with Europe generating sales growth of 2.0%, with encouraging performances in Germany, the UK, Spain and Eastern Europe.

In the Americas region, business in Latin America performed particularly well with sales growth of 7.1%, while North America sales increased by 4.6%.

The Africa/Asia/Australia region saw a strong increase in sales, with growth of 9.6%.