THE WHAT? Beiersdorf has released preliminary Q1 results, with sales of La Prairie skin care as well as its sunscreen products hit by the drastic fall in travel retail, while sales of hand cream, hand wash and plasters have risen, according to a report by Reuters.
THE DETAILS The preliminary Q1 results showed a 3.6 percent drop YOY, with Beiersdorf having already scrapped its 2020 outlook.
La Prairie fell 36 percent in the quarter as global tourism ground to a halt as the COVID-19 pandemic took hold, while sales of Eucerin and Aquaphor creams rose 11.5 percent and Hansaplast plasters grew 10.1 percent. Nivea reported a slight increase of 0.6 percent.
Beiersdorf shares were down 2.7 percent following the news.
The personal care giant has moved most of its advertising spend online, with its 43 percent digital media spend said to have helped e-commerce sales rise 23 percent.
THE WHY? As the future remains uncertain due to the nature of the pandemic, the company is expecting to also see a hit to Q2 results, according to Chief Executive Stefan de Loecker.
De Loecker outlined that it was too early to report the full extent of how the crisis will affect its sunscreen business going forward, while Finance Chief Dessi Temperley stated that the drop in higher margin La Prairie sales and the rise in lower margin personal care products would also impact profitability.