Turnover for German group Beiersdorf, parent company for Nivea among other brands, has dropped nearly 2 % in the first quarter. The company points to exchange rate fluctuations, which had a sizeable negative effect.
Results below expectations
Analysts had expected a 1.3 % turnover increase to 1.73 billion euro, but Beiersdorf revealed a 1.9 % turnover drop to 1.67 billion euro instead. There was a 2.4 % organic growth, but even those numbers were below analysts' expectations of 3.3 %
European turnover grew nearly 1 % to 888 million euro, as Germany, the United Kingdom and Spain performed well in Western Europe and Russia was the German group's backbone in Eastern Europe. The Americas experienced a 8.5 % turnover drop to 287 million euro, mainly because of adverse exchange rate fluctuations, while the Africa / Asia / Australia regions also had to deal with a 2.7 % turnover drop.
For its full fiscal year 2016, Beiersdorf expects the group's turnover to grow 3 to 4 %.