Beiersdorf Reports Robust Growth, Upgrades Guidance

Beiersdorf Reports Robust Growth, Upgrades Guidance

THE WHAT?    Beiersdorf AG reported an 11.2% increase in organic growth in the third quarter of 2023, reaching a total of €7.3 billion in Group sales. The Consumer Business Segment saw a 13.6% increase in organic sales, totalling €6.0 billion, largely driven by the global success of NIVEA, Eucerin, and Aquaphor. The tesa Business Segment experienced a 1.3% growth, amounting to €1.3 billion in sales over nine months.

THE DETAILS CEO Vincent Warnery attributes the growth to the success of their main brands and their strategic moves in digitalisation, globalisation, and product innovation, leading the company to raise its sales guidance for the year. However, La Prairie faced a 15.8% decline in sales due to disruptions in the travel retail market in China and Korea, but there are positive signs of recovery in other markets.

THE WHY? Specifically, NIVEA had a 17.5% growth, with success across all regions and categories, while Eucerin and Aquaphor grew by 24.8%, driven by success in Sun Care products, e-commerce, and the Latin American market. The Healthcare business also grew by 4.3%, with innovations in plaster products boosting market share. Beiersdorf has raised its full-year guidance for the Consumer Business Segment to a low-double-digit organic sales growth and confirms an EBIT margin excluding special factors to be +50bps higher than the previous year. For the Group, a low-double-digit organic sales growth is anticipated.