Hamburg - Beiersdorf AG, Hamburg, grew its sales in the 2019 financial year.
According to preliminary, unaudited figures, Group sales rose organically by 4.1% in 2019. In nominal terms, sales were up by 5.8%, from EUR7,233 million to EUR7, 653 million. The Consumer Business Segment had a strong contribution to this result by achieving organic sales growth of 4.8%. tesa achieved organic sales growth of 0.8% in a challenging market environment. Beiersdorf confirms guidance to generate a consolidated EBIT margin from ongoing operations of around 14.5%.
'In 2019, we proved our competitiveness in an increasingly challenging market environment that had a particular impact on tesa's business. We delivered on our C.A.R.E.+ commitment by leveraging growth momentum, gaining market share, and strengthening our brand portfolio. Our achievements are the result of the consistent implementation of our C.A.R.E.+ strategy. Even though we expect headwinds in the 2020 financial year, we see good potential and opportunities which we will fully leverage with further investments. With C.A.R.E.+, we are on the right track and are looking forward to the fiscal year ahead with cautious optimism,' said Stefan De Loecker, Chairman of the Executive Board of Beiersdorf AG.
Consumer Business Segment
The Consumer Business Segment generated organic sales growth of 4.8% during financial year 2019. Nominal sales totaled EUR6, 274 million, an increase of 6.5% above the previous year's total of EUR5, 890 million. In addition to positive exchange rate effects, sales generated by the newly acquired Coppertone brand contributed to the gains in nominal sales, albeit in a limited way due to seasonal effects. Organic growth was achieved in all regions. Key drivers of the sales growth were the brands NIVEA, Eucerin, and Aquaphor as well as La Prairie.
tesa Business Segment
In 2019, tesa achieved organic sales growth of 0.8% in a challenging market environment. Nominal sales increased by 2.7%, from EUR1, 343 million in the previous year to EUR1, 379 million. In particular the Trade Markets segment, which includes the retail consumer business, contributed to the business segment's positive performance. Sales in the Direct Industries segment remained stable overall. The electronics business showed a clear positive performance in 2019. However, the automotive business had a weak sales performance in an uncertain market environment.
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