Global lockdowns in key markets and travel restrictions had a considerable impact, especially in the second quarter.
At
Despite the fall in sales, Beiersdorf continued full speed ahead with its investment program to implement the C.A.R.E.+ strategy. It gained market share in all skin care categories. High investment levels and increased expenditure in these areas reduced the operating result (EBIT) excluding special factors to
Strong performance in Derma business adds momentum in Consumer Business Segment
The enormous impact of the pandemic on Beiersdorf's sales markets caused total sales in the Consumer Business Segment to fall to
The global skin care market declined in 2020 - some months saw a double-digit drop - due to the coronavirus pandemic. This resulted in a 6.0% fall in organic sales at Beiersdorf's core brand NIVEA in the reporting year. Despite this, NIVEA maintained its strong overall position worldwide in all categories and gained additional market share in over half of countries.
In Health Care, which mainly comprises the plaster business, sales were down organically by 5.9% year on year and were hit particularly by the heavy restrictions imposed in
The impact of the COVID-19 pandemic was also clearly felt at LA PRAIRIE. The selective cosmetics brand recorded a 23.9% fall in organic sales due to significantly reduced travel and the resulting fall in sales in the important travel retail business. Despite sales recovering for a time in the course of the year and double-digit growth in
Rapid second-half recovery at tesa
Business at Beiersdorf's tesa subsidiary recovered swiftly from the crisis. After difficult first six months, tesa saw growth again in the third and fourth quarter, driven especially by improvements in electronics and DIY business. The rapid recovery in the second half of the year left sales for 2020 as a whole almost unchanged to the previous year. They were down just 1.5% at
Strong balance sheet
The results for both business segments show that Beiersdorf has maintained its strong balance sheet. Profit after tax (excluding special factors) for 2020 was
'Our continuously strong cash generation and net liquidity position demonstrate Beiersdorf's resilience in the face of the global pandemic. Given this strong foundation, we were able to take a deliberate decision not to cut back on our investment program during the crisis. On the contrary, we have pushed ahead with all our plans,' said
C.A.R.E.+ strategy on track
Despite the setbacks in the operating business, Beiersdorf followed through with the implementation of C.A.R.E.+ in 2020. As a result, Beiersdorf gained market share in all skin care categories, in all regions around the world, and in almost two-thirds of the countries with its NIVEA, EUCERIN, and HANSAPLAST brands. This success was based on the development of innovative skin care solutions, including EUCERIN Hyaluron Filler + Elasticity 3D Serum, which contains the patented active ingredient Thiamidol, and additions to the NIVEA Naturally Good range. Beiersdorf also further accelerated the digital transformation in the reporting year. E-commerce business recorded growth of 50% across the Group, and new digital innovations such as the NIVEA SKiN GUiDE web app made a successful debut. Beiersdorf further expanded its presence in key growth markets with strong innovations and a more digital approach. Despite the sharp decline in travel retail business, LA PRAIRIE achieved strong double-digit growth rates particularly in
These successes are partly the result of a consistent product focus on the purpose of each brand. Beiersdorf further stepped up its efforts in sustainability in the reporting year with the 'Care Beyond Skin' sustainability agenda. In the current ranking of the NGO '
Investment initiative accelerated
Beiersdorf reoriented its Consumer Business Segment back in 2019 with the C.A.R.E.+ strategy program. The strategy involved additional annual investments of
Beiersdorf is optimistic about its business prospects for 2021. 'There is still some uncertainty this year. However, I am confident that we will see clear improvements by the end of the year as vaccinations gather pace in many countries,' said
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