Beiersdorf: New business investment to mitigate coronavirus impact for 2020

Beiersdorf: New business investment to mitigate coronavirus impact for 2020

THE WHAT? Beiersdorf is predicting similar growth for 2020 in line with 2019, with investment into new business said to offset the negative effects of the coronavirus, according to a report by Reuters. 

THE DETAILS The personal care giant is forecasting organic sales growth of 3-5 percent for 2020, despite the coronavirus affecting the company’s consumer business, which was ‘considerably below plan’ for January and February, as well as its adhesives unit. 

Around a third of sales are in Africa, Asia and Australia, with sales in its consumer unit jumping 8.4 percent. 

THE WHY? Talking to analysts, CEO Stefan de Loecker praised his business strategy, implemented in 2019 and including investment in new business areas, bolstering digitalization and investing further in the current skin care portfolio, as seeing off the financial implications of the coronavirus. 

However, he continued it was impossible to predict the impact sales will have on travel.

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