German skin care manufacturer Beiersdorf has raised its full-year forecast after sales for Nivea skin care products managed to beat third quarter expectations.
Slight drop in Western Europe
Over the first three quarters, Beiersdorf's profit grew from 423 million euro to 514 million euro, while turnover also spiked 6.8 %, from 7.72 billion euro to 5.04 billion euro. Organically, it was a 2.7 % turnover growth.
The company now expects a 3 to 4 % turnover increase for its full fiscal year, while profit margins will be significantly higher than last year's. Previously, it assumed profit margins would only marginally increase.
Western European turnover did drop slightly, but Russian, Eastern European, Japanese and Indian turnover did experience growth. Chinese Beiersdorf sales stabilized thanks to increased online sales, now at nearly 20 % of all Chinese turnover for Beiersdorf.
The decent results are because of Nivea's excellent results, which justifies Beiersdorf's recent investments into the brand, to make it more appealing to men and younger consumers - a strategy that is now paying off.