Beiersdorf profit declines in H1 2012

German personal care products maker Beiersdorf has reported decrease in profit after tax in the first half of 2012 to €248m, down from €258m for the same half in 2011.

The firm’s net sales for the first half increased to €3.06bn, compared to €2.9bn in the corresponding period for the previous year.

Beiersdorf’s earnings before interest and taxes (EBIT) margin mounted to 12.7%, compared to 12% in the first half 2011.

The firm said the main driver for the improvement in earnings was the company’s positive development in the emerging markets.

Beiersdorf executive board chairman Stefan Heidenreich said the numbers reflect the first fruits of company’s strategic realignment.

"They show that we can generate profitable growth even under difficult macroeconomic conditions. We are on the right track with our moves to strengthen our brands and innovative capabilities, as well as expanding our presence and impact on the emerging markets," said Heidenreich.

In the consumer business segment,the firm has increased its sales organically by 2.5% for the first six months of the 2012, which was driven by the core brands that showed growth increase of 4.4% at NIVEA, 3.1% at Eucerin and 2.7% at La Prairie.

The company reported growth of 8.1% in the Eastern European markets, where the key driver was the increase in sales recorded in the Russian market.

Cosmetics company Beiersdorf is based in Hamburg, Germany, and its NIVEA brand is the world’s largest skin care brand.

The firm’s other brands include Eucerin, La Prairie, Labello, 8×4, and Hansaplast/Elastoplast.