Beiersdorf exceeds pre-pandemic group sales in fiscal 2021

Beiersdorf AG shared its results for the 2021 financial year. Despite the continuing challenges posed by the Covid-19 pandemic, the group’s organic sales increased by 9.7% to reach 7.6 billion euros (8.4 billion), surpassing the level before the 2019 crisis.

“2021 was not only a successful financial year for Beiersdorf, but also a year in which we took very promising strategic steps to lay the foundations for our future,” said Vincent Warnery, CEO of Beiersdorf AG. “We have made very good progress in all areas of our CARE+ strategy. We tapped into new and attractive growth potential, strengthened our ability to innovate and reached major milestones in our digital and sustainable transformation – despite numerous adverse circumstances resulting in particular from the coronavirus pandemic and the rising costs of equipment and transportation.


Activity area

The Consumer Business segment recorded sales of €6.1 billion ($6.8 billion) in fiscal 2021, corresponding to organic growth of 8.8%. A significant contribution to this growth came from e-commerce activities, which grew by 32% over the past fiscal year. The Consumer Business segment now generates more than 10% of its total sales online.

The highest growth rates for the Consumer business were recorded in Latin America (18.8%) and North America (13.0%), followed by the markets of Africa, Asia and Australia, where demand increased by 8.9% overall. However, strong sales growth was also seen in Eastern Europe (6.3%) and Western Europe (5.7%).

Flagship brand NIVEA reported organic sales growth of 5.5% in 2021, with the NIVEA LUMINOUS630 product line proving very successful. The series of care was supplemented by other categories last year. NIVEA was able to significantly increase its market share in the skincare category, especially in Europe, thanks to the success of the NIVEA LUMINOUS630 range.

The selective cosmetics segment shows the highest growth rates. Demand for La Prairie increased by 20.1%. This was driven by a recovery in the travel retail business, which was hardest hit by the Covid-19 pandemic in 2020. Particularly in China, La Prairie sales rose above average and were well above the pre-crisis level of 2019 at the end of the fiscal year.

The Derma business unit continued to show good results. After recording strong sales growth in 2020, sales of the Eucerin and Aquaphor brands again increased strongly (+19.5%) in fiscal year 2021. The main growth drivers were the markets strategically important countries like the United States, Germany, Latin America and China.

The Healthcare business unit, which mainly includes the plaster business with the Hansaplast and Elastoplast brands, increased its organic sales by 13.7%. Market launches in the wound care category and a strong recovery in the sports category had a particularly positive impact on sales.

The tesa business segment continued its growth trajectory in 2021, a trend that began to emerge in the second half of 2020. Organic sales increased by 13.6% to €1.5 billion (€1.7 billion dollars). This strong demand was mainly sustained by industrial activity, in particular by electronics and automobiles.


CARE+: Focus on sustainability, digitization, innovation and growth

Other important milestones were achieved in the implementation of the CARE+ strategy in 2021. These included, for example, the expansion of the successful NIVEA LUMINOUS630 skincare range in Europe, the successful integration of the Coppertone brand, the acquisition of the prestige beauty brand Chantecaille, the increasing use of digital technologies to cultivate markets, and further increase the capacity for innovation thanks to the establishment of a global research and development network.

In addition, Beiersdorf has consistently pursued the implementation of its Care Beyond Skin sustainability program over the past financial year, which also applies at the product level. This concerns the development of new products and the optimization of existing product lines. For example, the first climate-neutralized NIVEA products were launched in 2021. More are expected to follow this year.

Beiersdorf has also made significant progress towards its climate goals, reducing its absolute scope 1, 2 and 3 emissions by 12.7% compared to the 2018 baseline. Beiersdorf is committed to achieving Ambitious climate goals in 2020. Absolute emissions from Scopes 1, 2 and 3 are to be reduced by 30% from 2018 levels by 2025.


Outlook

Regardless of how the skincare market grows, Beiersdorf assumes it will always outperform the market. The group expects the improvement in the global skincare market to continue in 2022.

Based on this assumption, the group expects the Consumer business to post mid-single-digit sales growth.

Given the uncertainty regarding market developments in 2022, Beiersdorf also expects tesa’s business to generate above-market mid-single-digit sales growth.

The group anticipates mid-single-digit sales growth in 2022.

About Thomas Hereford

Check Also

Pierre Fabre and Lonza enter into a manufacturing agreement for the W0180 antibody

Lonza will provide clinical drug manufacturing for W0180, an oncology drug candidate discovered by Pierre …