BRIC Sales Help Cosmetic Firm Beiersdorf Post Strong Results

Aug. 5, 2008
Net profit leaps 57%.

German cosmetics group Beiersdorf, maker of Nivea creams, benefitted from strong global demand in the second quarter and has coped with the rising cost of raw materials for now, it said on Tuesday.

Group sales rose by 7% from April to June, reaching 1.57 billion euros (US$2.44 billion), a statement said.

Growth was especially strong in China, where the German group recently bought the C-Bons Hair Care firm, as well as in Brazil, India and Russia.

Net profit jumped by 57% to 148 million euros as the Hamburg-based company began to reap the fruit of a restructuring program that focused on its supply chain. The result of that work contributed 13 million euros to overall results, compared with a charge of 48 million in the second quarter of 2007.

Starting next year, the restructuring should no longer involve costs but provide savings estimated at 100 million euros per year, Beiersdorf said.

For now, it has managed to cope with rising prices for raw materials, but warned that it "will adapt its sales prices in line with this trend next year."

Copyright Agence France-Presse 2008

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