Beiersdorf reports strong growth and high profitability

Beiersdorf, which manufactures and retails personal-care products and self-adhesives, including Nivea, Elastoplast and Eucerin, is maintaining its good growth momentum after reporting a “strong rise” in sales and high profitability in the first six months of 2023.

The German group saw organic sales rise 12.3 percent to 4.9 billion euros, while sales in the consumer business segment increased 14.9 percent to 4.1 billion euros, whilst EBIT reached 700 million euros, up from 550 million euros in the previous year.

Sales success was led particularly by the sun protection and lip care business, explained Beiersdorf in a statement, driven by growth for Nivea and dermatological brands Eucerin and Aquaphor.

Beauty and skincare brand Nivea, including Labello, reported strong, broad-based growth with sales growth across all regions and categories, up 18.4 percent to 2.7 billion euros. While derma brands Eucerin and Aquaphor saw sales rise 26 percent to 663 million euros. This was driven by demand for sun protection, particularly in North and Latin America. In addition, Beiersdorf also expanded its market share for the Derma brands, especially in the anti-ageing, body care, and sun protection categories.

Nivea, Eucerin and Aquaphor drive sales growth at Beiersdorf

Vincent Warnery, chief executive at Beiersdorf, said in a statement: “We not only continued our growth path but also significantly increased our profitability in the first half of the year. Our Consumer Business outperformed the market in terms of growth. Both Nivea and the Derma brands grew strongly in all regions and categories and more than offset the weaker performance of our luxury business.

“These positive results give us confidence for the next months, even though we still expect headwinds in some areas. We are therefore increasing our sales forecast for the Consumer Business Segment and the Group.”

However, luxury brand La Prairie recorded a 9.9 percent drop in sales in the first six months to 294 million euros, primarily due to disruption in the Asian travel retail markets.

While the healthcare business, which primarily comprises the plaster business of Hansaplast and Elastoplast, posted organic sales growth of 5.4 percent and further expanded its market share. Sales grew in nominal terms by 3.8 percent to 145 million euros and added that good growth rates were achieved particularly in Latin America and India.

Looking ahead, Beiersdorf has slightly increased its sales forecast for 2023. In the consumer business, Beiersdorf expects organic sales growth in the high single-digit to low double-digit range. It added that there is an opportunity to achieve growth at the upper end of this range if the luxury market conditions improve.