THE WHAT? Beiersdorf has reported a FY20 sales decline of 8.2 percent, with the multinational having been adversely affected by the pandemic. However, the company has stated that it expects a sales recovery in 2021.
THE DETAILS Organic sales fell 3.4 percent in Q4, with Nivea down 5.4 percent. Brands Eucerin and Aquaphor bucked the decline, rising 5.9 percent, while La Prairie also grew by 21 percent. Operating profit fell 17.3 percent to 906 million euros.
While sales were expected to recover this year, profitability was not expected to return in 2021. Shares of the company dropped 3.7 percent following the news.
Speaking of the troubles faced in 2020, CEO Stefan de Loecker said the year, “was challenging, but it was also a landmark year for Beiersdorf. Our clear priorities in the crisis were to ensure the safety of our employees, continue meeting the needs of our consumers and do our utmost to help society battle COVID-19.”
THE WHY? Looking forward, the personal care giant is expecting to post positive sales gains in 2021 and EBIT margin at the 2020 level.
De Loecker said of future plans, “We continued to invest in sustainability, digitalization and growth markets. This approach has paid off in terms of added brand appeal right across our group. We want to continue building on this by investing an additional 300 million euros over the next five years.”