Beiersdorf profits plunge 85pc as Nivea maker's activity falls off
PROFITS at the Irish arm of Nivea maker Beiersdorf slumped 85pc to €555,000 from nearly €3.6m last year as the company's activity in the market declined.
Accounts just filed for Beiersdorf Ireland at the Companies Registration Office show that turnover at the division tumbled from nearly €21m in 2008 to just under €14m in 2009.
The poor financial performance by the subsidiary didn't prevent a €3.2m dividend being paid to its parent last year and a further €489,000 last May.
Beiersdorf, whose brands also include products such as Labello lip balm, has been hit badly in its home German market, with its shares falling the most in a year over 10 days ago after it reported that first-half revenue in the country fell 2.3pc.
That contributed to an overall 1.3pc slide in the company's Europe-wide sales. One analyst described its consumer business as "surprisingly weak".
Second-quarter net income jumped 45pc from a year earlier to €126m, propelling a 32pc increase in first-half profit, because of stronger consumer demand in the Americas and manufacturing customers buying more adhesive tape.
Group revenue in Europe, which accounts for almost two-thirds of Beiersdorf's sales, rose 0.8pc.
Accounts for Beiersdorf Ireland show that administrative expenses at the company, which employs about 17 people, fell to €7.8m last year from €10.3m in 2008, while its staff costs remained relatively unchanged at just over €1m.