In the first quarter of 2022, Beiersdorf achieved $2.41 billion in its corporate organic sales with a rise of 10.3% and its organic sales of the Consumer business segment increased 11.6% year-on-year to $1.94 billion.
Recently, Beiersdorf’s official website reported that corporate organic sales increased significantly by 10.3% to $2.41 billion in the first quarter of 2022, higher than current market expectations.
Its organic sales in the Consumer business segment increased 11.6% year-on-year to $1.94 billion. Meanwhile, The 2022 full-year sales forecast published in March for the Consumer business segment remains unchanged in light of the ongoing volatile market environment. Beiersdorf anticipates sales growth in the mid-single-digit range for Consumer.
Beiersdorf has stood for innovative, high-quality skin care products as well as pioneering skin research for nearly 140 years. Leading international brands such as NIVEA, the world’s no. 1 skincare brand*, Eucerin (dermocosmetics), La Pairie (selective cosmetics), and Hansaplast/ Elastoplast (plasters and wound care) are cherished by millions of people around the world day after day. Renowned brands such as Aquaphor, Coppertone, Renowned brands such as Aquaphor, Coppertone, Chantecaille, Labello, 8×4, atrix, Hidrofugal, Maestro, and Florena round off our extensive portfolio in the Consumer Business Segment. Through the wholly owned affiliate tesa SE, Beiersdorf is also a global leading manufacturer of technical adhesive tapes and provides self-adhesive solutions to industry, craft businesses, and consumers.
The Hamburg-based company has more than 20,000 employees worldwide, who are connected by shared core values, a strong corporate culture and the Beiersdorf purpose Care Beyond Skin. its C.A.R.E. + business strategy, the company pursues a multi-year investment program focusing on competitive, sustainable growth. The program is consistent with the ambitious sustainability agenda, with which Beiersdorf is generating clear added. The program is consistent with the ambitious sustainability agenda, with which Beiersdorf is generating clear added value for consumers, society, and the environment.
In fiscal 2021, Beiersdorf’s Consumer segment, which includes the cosmetics business, increased its EBIT excluding special factors to $804 million with an EBIT margin of 12.1%. The main driver of the segment’s growth came from the e-commerce business. The e-commerce business now contributes more than 10% of the total sales of the consumer segment, which grew 32% in the previous fiscal year.
The financial results show that its core brand NIVEA grew sales by 5.5% in 2021, with the NIVEA LUMINOUS 630 Spotclear Intensive Treatment Serum performing well, helping NIVEA to expand its market share in the facial care category thanks to the success of the line.
The line is said to be a new addition to NIVEA’s product portfolio and includes products such as NIVEA LUMINOUS 630 Spotclear Intensive Treatment Serum, LUMINOUS 630 UV Protect and LUMINOUS 630 Anti Dark-spot Even Tone Night Cream. The products contain W630, an active ingredient patented by Beiersdorf that reduces pigmentation and age spots, gently and efficiently lightens blemishes and acne marks, whitens and brightens, and is therefore known by consumers as the “strongest whitening ingredient on the planet”.
After the reform and opening up in China, NIVEA became one of the first foreign companies to come to China. In 1994, the parent company Beiersdorf officially set up a Sino-foreign joint venture with Shanghai Daily Chemical No.2 Factory, named NIVEA (Shanghai) Company.
In 2020, NIVEA’s world’s second largest innovation and R&D center was established in Shanghai after the headquarters in Hamburg, Germany. This reflects the importance NIVEA attaches to the Chinese market. It tended to further understand the Chinese market comprehensively and better serve Chinese consumers.
In addition, Beiersdorf said the recovery in travel retail is driving consumer demand for the premium beauty brand La Prairie, which grew sales by 20.1 percent in 2021, with strong growth in the U.S., Germany and China, especially in China, where La Prairie’s sales were well above average.
According to the financial data, La Prairie grew rapidly in 2017, 2018 and 2019, three years before the start of the epidemic, with growth rates of 11.50%, 38.50% and 20%, respectively.
However, going into 2020, La Prairie declined 23.9% due to the impact of the epidemic. From January to September 2021, sales of La Prairie under Beiersdorf declined by a larger propitiation of 34.5%.
However, in the third quarter, La Prairie gained consecutive sales growth in Asia and the Americas, and the brand’s overall sales declined by 16.9% in the third quarter, shrinking compared to the decline in the previous two quarters.
According to the survey, a total of 62 SKUs are being sold in La Prairie’s official flagship store of Tmall beauty platform, with the highest sales of La Prairie Skin Caviar Luxe Eye Cream, with a total sales volume of 5,000+ units and a price of $534.
But along with the rise of high-end beauty consumption in China and the brand’s presence in the Chinese e-commerce platform Tmall channel, Beiersdorf is expected to further strengthen the brand’s presence in this key market. This is indeed reflected in the 2021 earnings report as well.
It is worth noting that the business says there is currently uncertainty due to the war in Ukraine, the embargo in China due to COVID-19 and inflationary pressure on raw material and logistics costs. Measures have been initiated within the Group to mitigate cost pressures.
In addition, Beiersdorf’s detailed first-quarter financial results will be released on April 28.
