Maxingvest AG, which owns the Tchibo GmbH coffee retail chain and a majority of Beiersdorf AG (BEI)’s shares, said operating profit fell 41 percent in 2011 as Tchibo faced higher purchase prices and profitability at Beiersdorf’s consumer unit dwindled.
Earnings before interest and taxes and declined to 540 million euros ($711.3 million) from 908 million euros in the year-earlier period, Hamburg-based Maxingvest said today in an e-mailed statement. Ebit before one-time items dropped to 810 million euros from 1.04 billion euros, the investment company said.
Ebit at Tchibo, which sells coffee and clothes, fell to 202 million euros from 288 million euros as cotton and raw coffee prices surged. Ebit at Beiersdorf dropped 26 percent to 431 million euros as margins at the consumer-products unit shrank in 2011.
Maxingvest expects a “slight improvement of sales and earnings” in 2012, it said in its statement.
Tchibo Sales Growth
Sales climbed 2.5 percent to 9.17 billion euros from 8.95 billion euros. Tchibo and Beiersdorf, the maker of Nivea cream, contributed 39 percent and 61 percent of revenue, respectively, Maxingvest said. Maxingvest has a 50.9 percent stake in Beiersdorf, Bloomberg data shows. Beiersdorf will report first- quarter earnings on May 3.
Tchibo posted two-digit sales growth for single-serve coffee, online retail and eastern Europe, which Maxingvest defines as “strategic growth areas.” Overall, sales grew about 5 percent at Tchibo last year, Maxingvest said.
Maxingvest, which in 2007 changed its name from Tchibo Holding GmbH, was founded in 1949 by Max Herz and Carl Tchilling-Hiryan as a mail-order company for coffee.
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