Beiersdorf reports H1 sales decline; derma brands outperform amidst pandemic

Beiersdorf reports H1 sales decline; derma brands outperform amidst pandemic

THE WHAT? Beiersdorf has reported a 2020 first half sales fall of 10.1 percent, reporting €3,449 million sales. However, the personal care giant’s derma brands remained steadfast in the wake of the pandemic.

THE DETAILS The company’s organic sales were down 10.9 percent YOY in the consumer business segment, while organic sales at tesa Business Segment fell 10.0%.

Stefan De Loecker, CEO of Beiersdorf, said, “In this extremely turbulent year, our business has been strongly impacted by the COVID-19 pandemic. The entire skin care market significantly declined and, as a consequence, the effect on sales was clearly felt in the first half of 2020. However, Beiersdorf was able to grow shares in this challenging market environment.”

Skin care was indeed hit hard, with the Nivea brand falling by 8.8 percent, while La Prairie fell a dramatic 41.9 percent YOY. However, derma cosmetics, such as Eucerin and Aquaphor saw off the hit of the GVC, rising 6.2 percent in the first half of 2020. 

Geographically, Europe organic sales fell 12.8 percent, while the Americas region was up 1.5 percent YOY, helped by the acquisition of the Coppertone business. The Africa/Asia/Australia region reported a 14.4% fall in sales.

THE WHY? As citied by De Loecker, the entire skincare market has felt the hit from the COVID-19 pandemic, and as countries across the globe continue to spike with cases, Beiersdorf is looking at the future with a cautious yet optimistic stance. 

De Loecker continued, “The COVID-19 pandemic is unfortunately not over yet and the situation remains exceptionally volatile. But as we are determined to emerge stronger from this unparalleled crisis, we are continuing to further invest in the initiatives of our C.A.R.E.+ strategy.”