Jamie Matusow, Editor10.01.14
Update: Beiersdorf ranks at #7 on our latest report Top 20 Global Beauty Companies 2021.
Hamburg, Germany
www.beiersdorf.com
Corporate Sales: $8.5 billion
Beauty Sales: $7 billion
Key Personnel: Stefan F. Heidenreich, chief executive officer, executive board member; Dr. Reinhard Pollath, chairman of the supervisory board; Dr. Ulrich Schmidt, executive board member; Ralph Gusko, executive board member.
Major Products: Global skincare and body care brands from mass to prestige, including Nivea, Eucerin, Labello, Florena, 8X4 and La Prairie.
New Products: Nivea In-Shower, Nivea Deodorant Invisible for Black & White, Nivea Face Cellular Anti-Age Face Care, Nivea Men Exfoliating Face Scrub, Florena Anti-Age Hand Care, Eucerin Volume Filler, Eucerin AtopiControl, Labello Vitamin Shake, La Prairie Cellular Eye Essence Platinum Rare.
Comments: Beiersdorf continued to “hit it right” in 2013, with focused R&D efforts leading to consumer skincare products that were “on the money,” from mass market Men’s skin care to ultra-prestige launches from La Prairie.
Beiersdorf recorded significant sales growth in all its business segments in 2013, with corporate sales up 7.2% in organic terms in the past fiscal year. Nominal sales (attributable to the growth of the euro) increased by 1.7%, from about $8.3 billion to $8.5 billion.
The Consumer Business Segment, which accounts for the vast majority of the corporate business, achieved organic sales growth of 7%.
Upon presenting the annual results, CEO Stefan F. Heidenreich, said: “2013 was an important and successful year for our group. In 2012 we developed and launched our Blue Agenda setting out the course for the next phase of Beiersdorf’s strategic development. Now during 2013 we have seen the first results of its implementation. The excellent growth dynamic achieved in 2013 across all areas of the group shows that this course is the right one.”
The Blue Agenda focuses on five key areas: Strengthening brands (especially Nivea), increasing innovative power, systematically expanding impact and presence in emerging markets and Europe, increasing efficiency and speed and employing dedicated workers.
Work continued on designing a new logo for the Nivea brand—and for its Nivea Men product line. The corporate logo was then designed to complement that of its core brand, with the same color and look. Beiersdorf’s new logo was revealed in January 2014.
In the highly successful Consumer Business Segment, organic sales grew 7%. In nominal terms, sales rose by 1.1% to $7 billion. All of the company’s three core brands—Nivea, Eucerin, and La Prairie—achieved strong growth rates. Nivea delivered 7.5% growth; Eucerin, 11.5%; and La Prairie, 7.5%.
As far as regional performance, Beiersdorf was successful in mature markets as well as emerging markets. For the first time, the share of total Consumer sales achieved in emerging markets reached a level of 52%, compared to the prior-year level of 49%.
Consumer sales were highest in Europe (55% of total sales), followed by Africa/Asia/Australia (27%); and The Americas (19%). Both mature European markets as well as emerging markets saw sales growth that topped previous years. Western Europe sales looked to be on a positive trend for the first time since 2008. In Germany, Beiersdorf recorded positive growth. In Eastern Europe, sales were 0.4% below prior year. Sales growth in Latin America was positive, driven largely by Brazil. Significant growth (19%) was recorded in the Africa/Asia/Australia region, especially in China, India and Japan. In North America, sales increased 4.6% compared to the prior year.
To fuel continued R&D, additional development labs were constructed in South America and China. A new facility is also expected to open next year in India.
Focused R&D Boosts Sales
With more than four million units sold, Nivea In-Shower—which moisturizes skin during cleansing—was the blockbuster new product in Germany in 2013. It quickly multiplied into a number of variations including Body Lotion with Sea Minerals, Body Milk Honey & Milk or Refreshing After-Sun Lotion. In-Shower appeals to consumers with little time, because the new products nourish skin “on the go.”
Nivea In-Shower is a prime example of how Beiersdorf’s R&D is focused strongly on consumer expectations. Along these lines, other new innovations that propelled sales for the year included Nivea’s Deodorant Invisible for Black & White, Nivea Deodorant Stress Protect, Nivea Cellular Anti-Age Face Care and Eucerin’s Volume Filler.
Beiersdorf also made strides in corporate and social sustainability efforts. One example is that FSC-certified papers are now being used on Nivea folding cartons.
Forecast 2014
When delivering results for FY 2014, Beiersdorf said it expected corporate sales to increase by 4-6% compared to 2013. In the Consumer Business Segment, the expectation was for sales growth to outperform the overall market at a level of 4-6%.
And in fact, the prediction proved to be on target, with positive sales increases both in emerging markets and in Europe. The Consumer Business Segment generated organic sales growth of 5% in the first half of 2014. Nivea grew sales by 6.1%, Eucerin by 6.8% and La Prairie by 7%.
In Europe, sales grew by 2%. In Western Europe, sales improved by 1.6%. In Eastern Europe, the growth rate was 3.9%. The Americas region continued its positive sales trend with an increase of 4.8%. In Latin America, sales growth of 5.1% was recorded, while in North America, sales increased by 4.2%. In the Africa/Asia/Australia region, sales grew by 11.3%.
Hamburg, Germany
www.beiersdorf.com
Corporate Sales: $8.5 billion
Beauty Sales: $7 billion
Key Personnel: Stefan F. Heidenreich, chief executive officer, executive board member; Dr. Reinhard Pollath, chairman of the supervisory board; Dr. Ulrich Schmidt, executive board member; Ralph Gusko, executive board member.
Major Products: Global skincare and body care brands from mass to prestige, including Nivea, Eucerin, Labello, Florena, 8X4 and La Prairie.
New Products: Nivea In-Shower, Nivea Deodorant Invisible for Black & White, Nivea Face Cellular Anti-Age Face Care, Nivea Men Exfoliating Face Scrub, Florena Anti-Age Hand Care, Eucerin Volume Filler, Eucerin AtopiControl, Labello Vitamin Shake, La Prairie Cellular Eye Essence Platinum Rare.
Comments: Beiersdorf continued to “hit it right” in 2013, with focused R&D efforts leading to consumer skincare products that were “on the money,” from mass market Men’s skin care to ultra-prestige launches from La Prairie.
Beiersdorf recorded significant sales growth in all its business segments in 2013, with corporate sales up 7.2% in organic terms in the past fiscal year. Nominal sales (attributable to the growth of the euro) increased by 1.7%, from about $8.3 billion to $8.5 billion.
The Consumer Business Segment, which accounts for the vast majority of the corporate business, achieved organic sales growth of 7%.
Upon presenting the annual results, CEO Stefan F. Heidenreich, said: “2013 was an important and successful year for our group. In 2012 we developed and launched our Blue Agenda setting out the course for the next phase of Beiersdorf’s strategic development. Now during 2013 we have seen the first results of its implementation. The excellent growth dynamic achieved in 2013 across all areas of the group shows that this course is the right one.”
The Blue Agenda focuses on five key areas: Strengthening brands (especially Nivea), increasing innovative power, systematically expanding impact and presence in emerging markets and Europe, increasing efficiency and speed and employing dedicated workers.
Work continued on designing a new logo for the Nivea brand—and for its Nivea Men product line. The corporate logo was then designed to complement that of its core brand, with the same color and look. Beiersdorf’s new logo was revealed in January 2014.
In the highly successful Consumer Business Segment, organic sales grew 7%. In nominal terms, sales rose by 1.1% to $7 billion. All of the company’s three core brands—Nivea, Eucerin, and La Prairie—achieved strong growth rates. Nivea delivered 7.5% growth; Eucerin, 11.5%; and La Prairie, 7.5%.
As far as regional performance, Beiersdorf was successful in mature markets as well as emerging markets. For the first time, the share of total Consumer sales achieved in emerging markets reached a level of 52%, compared to the prior-year level of 49%.
Consumer sales were highest in Europe (55% of total sales), followed by Africa/Asia/Australia (27%); and The Americas (19%). Both mature European markets as well as emerging markets saw sales growth that topped previous years. Western Europe sales looked to be on a positive trend for the first time since 2008. In Germany, Beiersdorf recorded positive growth. In Eastern Europe, sales were 0.4% below prior year. Sales growth in Latin America was positive, driven largely by Brazil. Significant growth (19%) was recorded in the Africa/Asia/Australia region, especially in China, India and Japan. In North America, sales increased 4.6% compared to the prior year.
To fuel continued R&D, additional development labs were constructed in South America and China. A new facility is also expected to open next year in India.
Focused R&D Boosts Sales
With more than four million units sold, Nivea In-Shower—which moisturizes skin during cleansing—was the blockbuster new product in Germany in 2013. It quickly multiplied into a number of variations including Body Lotion with Sea Minerals, Body Milk Honey & Milk or Refreshing After-Sun Lotion. In-Shower appeals to consumers with little time, because the new products nourish skin “on the go.”
Nivea In-Shower is a prime example of how Beiersdorf’s R&D is focused strongly on consumer expectations. Along these lines, other new innovations that propelled sales for the year included Nivea’s Deodorant Invisible for Black & White, Nivea Deodorant Stress Protect, Nivea Cellular Anti-Age Face Care and Eucerin’s Volume Filler.
Beiersdorf also made strides in corporate and social sustainability efforts. One example is that FSC-certified papers are now being used on Nivea folding cartons.
Forecast 2014
When delivering results for FY 2014, Beiersdorf said it expected corporate sales to increase by 4-6% compared to 2013. In the Consumer Business Segment, the expectation was for sales growth to outperform the overall market at a level of 4-6%.
And in fact, the prediction proved to be on target, with positive sales increases both in emerging markets and in Europe. The Consumer Business Segment generated organic sales growth of 5% in the first half of 2014. Nivea grew sales by 6.1%, Eucerin by 6.8% and La Prairie by 7%.
In Europe, sales grew by 2%. In Western Europe, sales improved by 1.6%. In Eastern Europe, the growth rate was 3.9%. The Americas region continued its positive sales trend with an increase of 4.8%. In Latin America, sales growth of 5.1% was recorded, while in North America, sales increased by 4.2%. In the Africa/Asia/Australia region, sales grew by 11.3%.