Glossy outlook for Beiersdorf as Q3 cosmetics profits shine
German cosmetics giant Beiersdorf, maker of Nivea and Labello lip balm, Wednesday reported strong third quarter profits on the back of cosmetics products and promised that full-year profits would now beat forecasts.
Net profit rose 43 percent to 159 million euros ($173 million) in the three months to September.
"We are growing against market trends," the group said in a statement.
Chairman Stefan Heidenreich said the company was winning market share "despite a difficult environment" and expected net profits to come in "noticeably above last year". Current forecasts are for a small increase.
"The rise in the margin forecast is underpinned by the cosmetics sector," said Thomas Maul, an analysts at DZ Bank.
The Hamburg-based firm has been pushing sales through social media of Nivea skin care products to men and young adults.
Heidenreich's optimistic outlook helped drive shares up three percent on the Frankfurt stock exchange.
Currency factors worked in Beiersdor's favour, as strong dollar sales translated into more euros thanks to the recent weakening of the European single currency.
Overall sales from July to September were up 5.7 year on year to 1.63 billion euros with earnings before interest and tax soaring 55.1 percent to 242 million euros, largely in line with expectations from analysts polled by Factset.
© 2015 AFP