Beiersdorf, which also makes Labello lip balm and La Prairie luxury skin care creams, reported 2013 comparable earnings before interest and tax of 814 million euros (£670.70 million), against analyst expectations for 824 million euros.

It said it would propose keeping its dividend flat at 0.70 euros per share, confounding expectations for an increase to 0.81 euros.

Beiersdorf had already reported 2013 sales in January, at which time it extended Chief Executive Stefan Heidenreich's contract after his turnaround strategy, the "Blue Agenda", led the group to its highest underlying sales growth in five years.

The company said it expects sales to rise by between 4 percent and 6 percent in 2014, while its EBIT margin - earnings as a percentage of sales - would be slightly above the 2013 level of 13.2 percent, up from 12.2 percent in 2012.

"Beiersdorf is back on a sustainable growth track," Heidenreich said in a statement.

Sales at the company's main consumer division rose 1.2 percent in western Europe last year, the first growth since 2008, Beiersdorf said on Tuesday.

At its Tesa adhesives division, which makes industrial adhesives used in cars, smartphones and tablet computers, sales should grow faster than predicted market growth of 2-3 percent, but its operating margin will drop slightly from 2013's 16.9 percent, Beiersdorf added.

(Reporting by Jan Schwartz; Writing by Victoria Bryan; Editing by David Goodman)