Beiersdorf AG (BEI), the maker of Nivea skin cream, reported first-quarter profit that beat analysts’ estimates on sales at its consumer and adhesives units.
Adjusted earnings before interest and tax rose 19 percent to 198 million euros ($260 million), the Hamburg-based company said in an e-mailed statement today. The average estimate of 12 analysts surveyed by Bloomberg was 185.3 million euros.
The consumer business has only “moderate growth potential” in Europe, Quaas said at last month’s annual general meeting. Economic confidence in the euro region declined more than economists had forecast in April, as the region’s slump showed signs of deepening, a report from the European Commission showed on April 26.
Sales gained to 1.53 billion euros from 1.41 billion euros a year earlier, the German company said. That beat the 1.48 billion-euro average estimate of 16 analysts.
Beiersdorf confirmed it expects its consumer business to grow in line with the market this year. Ebit margin for the company’s consumer unit will be 11 percent to 12 percent, Beiersdorf said. Sales growth at Tesa will “slightly” outperform the market this year, Beiersdorf said.
Net income attributable to shareholders in the quarter was unchanged at 123 million euros.
Quaas previously identified “significant” growth opportunities in Latin America, South East Asia and China.
Beiersdorf said in November that it planned to cut as many as 1,000 jobs over three years to reduce expenses by 90 million euros annually by 2014.
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