Beiersdorf: shares fall as earnings miss expectations
(CercleFinance.com) - Beiersdorf shares are tumbling almost 9 percent in morning trading on Wednesday after the German manufacturer of Nivea cream, amongst others, forecast a deceleration in organic growth this year.
Beiersdorf announced that group sales improved by 5.4% in organic terms in 2018, and are up 2.5% in nominal terms, despite "increasingly difficult conditions over the course of the year."
EBIT and special factors increased by 2.3% to 1.1 billion euros last year, with the group's EBIT margin stable at 15.4%.
Most importantly, Beiersdorf has announced a new strategy program called "C.A.R.E.+" to enter new business areas, accelerate innovation, increase digitalization, and improve productivity.
For this purpose, the company plans to make additional investments of 70 million euros to 80 million euros, as from 2019.
Due to the higher investments, Beiersdorf expects 2019 organic sales growth of just 3%-5%, with its EBIT margin in the consumer business segment expected to decline to 14%-14.5%, from 15.3% in 2018.
Investors didn't seem to share his enthusiasm, however, with Beiersdorf shares currently dropping 8.9%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Beiersdorf announced that group sales improved by 5.4% in organic terms in 2018, and are up 2.5% in nominal terms, despite "increasingly difficult conditions over the course of the year."
EBIT and special factors increased by 2.3% to 1.1 billion euros last year, with the group's EBIT margin stable at 15.4%.
Most importantly, Beiersdorf has announced a new strategy program called "C.A.R.E.+" to enter new business areas, accelerate innovation, increase digitalization, and improve productivity.
For this purpose, the company plans to make additional investments of 70 million euros to 80 million euros, as from 2019.
Due to the higher investments, Beiersdorf expects 2019 organic sales growth of just 3%-5%, with its EBIT margin in the consumer business segment expected to decline to 14%-14.5%, from 15.3% in 2018.
Investors didn't seem to share his enthusiasm, however, with Beiersdorf shares currently dropping 8.9%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.