03.10.22
Beiersdorf AG has shared its results for fiscal year 2021. Despite ongoing challenges posed by the Covid-19 pandemic, organic group sales rose by 9.7% to €7.6 billion ($8.4 billion), exceeding the pre-crisis level of 2019.
“2021 was not only a financially successful fiscal year for Beiersdorf, but also a year in which we took highly promising strategic steps to lay the groundwork for our future,” said Vincent Warnery, CEO of Beiersdorf AG. “We made very good progress in all areas of our C.A.R.E.+ strategy. We tapped new and attractive growth potential, enhanced our capacity to innovate, and achieved major milestones as part of our digital and sustainable transformation – despite many adverse circumstances resulting particularly from the coronavirus pandemic and higher material and transport costs.”
The highest growth rates for the Consumer business were in Latin America (18.8%) and North America (13.0%), followed by markets in Africa, Asia, and Australia, where demand increased by a total of 8.9%. However, there was also buoyant sales growth in Eastern Europe (6.3%) and Western Europe (5.7%).
The core brand NIVEA recorded organic sales growth of 5.5% in 2021, with the NIVEA LUMINOUS630 product range performing extremely successfully. The care series was complemented by further categories last year. NIVEA was able to significantly expand its market share in the face care category, especially in Europe, on the back of the NIVEA LUMINOUS630 range’s success.
The selective cosmetics segment posted the largest growth rates. Demand for La Prairie increased by 20.1%. This was driven by a recovery in travel retail business, which was hit hardest by the Covid-19 pandemic in 2020. In particular in China, La Prairie sales rose above average and were far above the pre-crisis level of 2019 by the end of the fiscal year.
The Derma business unit continued to perform successfully. After posting high sales growth in 2020, revenue from the Eucerin and Aquaphor brands rose strongly again (+19.5%) in fiscal year 2021. Main growth drivers were the strategically important markets of the United States, Germany, Latin America and China.
The Healthcare business unit, which mainly comprises plaster business with the Hansaplast and Elastoplast brands, increased organic sales by 13.7%. Market launches in the wound care category and a strong recovery in the sports category had a particularly positive impact on sales.
The tesa Business Segment continued on its growth trajectory in 2021, a trend that began to emerge in the second half of 2020. Organic sales rose by 13.6% to €1.5 billion ($1.7 billion). This high demand was underpinned mainly by industrial business, in particular by the electronics and automotive business.
In addition, Beiersdorf systematically pressed ahead with implementing its sustainability agenda Care Beyond Skin in the past fiscal year, which also applies to the product level. That relates to developing new products and optimizing existing product ranges. For instance, the first climate-neutralized NIVEA products were launched in 2021. Others are to follow this year.
Beiersdorf also made considerable progress toward its climate targets, reducing its absolute Scope 1, 2 and 3 emissions by 12.7% versus the base year 2018. Beiersdorf committed to ambitious climate targets in 2020. Absolute Scope 1, 2 and 3 emissions are to be cut by 30% compared to 2018 levels by 2025.
Given that assumption, the group anticipates that Consumer business will post sales growth in the mid single-digit range.
Given the uncertainty regarding the market development in 2022, Beiersdorf also expects tesa business to generate above-market sales growth at mid single-digit range.
The group anticipates sales growth in the mid single-digit range in 2022.
“2021 was not only a financially successful fiscal year for Beiersdorf, but also a year in which we took highly promising strategic steps to lay the groundwork for our future,” said Vincent Warnery, CEO of Beiersdorf AG. “We made very good progress in all areas of our C.A.R.E.+ strategy. We tapped new and attractive growth potential, enhanced our capacity to innovate, and achieved major milestones as part of our digital and sustainable transformation – despite many adverse circumstances resulting particularly from the coronavirus pandemic and higher material and transport costs.”
Business Segments
The Consumer Business Segment posted sales of €6.1 billion ($6.8 billion) in fiscal year 2021, corresponding to organic growth of 8.8%. A significant contribution to this growth came from e-commerce business, which increased by 32% in the past fiscal year. The Consumer Business Segment now generates more than 10% of its total sales online.The highest growth rates for the Consumer business were in Latin America (18.8%) and North America (13.0%), followed by markets in Africa, Asia, and Australia, where demand increased by a total of 8.9%. However, there was also buoyant sales growth in Eastern Europe (6.3%) and Western Europe (5.7%).
The core brand NIVEA recorded organic sales growth of 5.5% in 2021, with the NIVEA LUMINOUS630 product range performing extremely successfully. The care series was complemented by further categories last year. NIVEA was able to significantly expand its market share in the face care category, especially in Europe, on the back of the NIVEA LUMINOUS630 range’s success.
The selective cosmetics segment posted the largest growth rates. Demand for La Prairie increased by 20.1%. This was driven by a recovery in travel retail business, which was hit hardest by the Covid-19 pandemic in 2020. In particular in China, La Prairie sales rose above average and were far above the pre-crisis level of 2019 by the end of the fiscal year.
The Derma business unit continued to perform successfully. After posting high sales growth in 2020, revenue from the Eucerin and Aquaphor brands rose strongly again (+19.5%) in fiscal year 2021. Main growth drivers were the strategically important markets of the United States, Germany, Latin America and China.
The Healthcare business unit, which mainly comprises plaster business with the Hansaplast and Elastoplast brands, increased organic sales by 13.7%. Market launches in the wound care category and a strong recovery in the sports category had a particularly positive impact on sales.
The tesa Business Segment continued on its growth trajectory in 2021, a trend that began to emerge in the second half of 2020. Organic sales rose by 13.6% to €1.5 billion ($1.7 billion). This high demand was underpinned mainly by industrial business, in particular by the electronics and automotive business.
C.A.R.E.+: Focus on Sustainability, Digitalization, Innovation & Growth
Further important milestones were achieved in implementing the C.A.R.E.+ strategy in 2021. They included, for example, expansion of the successful care range NIVEA LUMINOUS630 in Europe, successful integration of the Coppertone brand, acquisition of the prestige beauty brand Chantecaille, the increasing use of digital technologies to cultivate markets, and further increase of the capacity to innovate thanks to the establishment of a global research and development network.In addition, Beiersdorf systematically pressed ahead with implementing its sustainability agenda Care Beyond Skin in the past fiscal year, which also applies to the product level. That relates to developing new products and optimizing existing product ranges. For instance, the first climate-neutralized NIVEA products were launched in 2021. Others are to follow this year.
Beiersdorf also made considerable progress toward its climate targets, reducing its absolute Scope 1, 2 and 3 emissions by 12.7% versus the base year 2018. Beiersdorf committed to ambitious climate targets in 2020. Absolute Scope 1, 2 and 3 emissions are to be cut by 30% compared to 2018 levels by 2025.
Outlook
Regardless of the skin care market’s growth, Beiersdorf assumes it will still outperform the market. The group expects the improvement in the global skin care market to continue in 2022.Given that assumption, the group anticipates that Consumer business will post sales growth in the mid single-digit range.
Given the uncertainty regarding the market development in 2022, Beiersdorf also expects tesa business to generate above-market sales growth at mid single-digit range.
The group anticipates sales growth in the mid single-digit range in 2022.