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    Top Companies Report

    7. Beiersdorf

    ...

    7. Beiersdorf
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    08.02.19
    Germany
    www.beiersdorf.com

    Sales: $6.9 billion for personal care products. Corporate sales: $8.5 billion.

    Key Personnel: Stefan De Loecker, chief executive officer, corporate strategy and development, supply chain, purchasing/production/logistics, internal audit, research and development; Harald Emberger, global head of supply chain; Ralf Gusko, executive board member, Asia Pacific (Northeast and Southeast Asia excluding Japan and India), Australia; Thomas Ingelfinger, executive board member, Europe (excluding Germany and Switzerland); Zhengrong Liu, executive board member, human resources and corporate communications, labor relations; Ramon A. Mirt, executive board member, Americas, Africa, India, Russia and Near East; Asim Naseer, executive board member, Nivea and digital; Dessie Temperley, executive board member, finance and quality (finance, controlling, legal, compliance, IT, quality assurance); May Shana’a, global head of research and development; Vincent Warnery, executive board member, pharmacy and selective.

    Major Products: Skin care—Nivea, Eucerin, La Prairie, Labello, Florena, 8x4, Atrix, Aquaphore; Hair care—Slek and Maestro.

    New Products: Nivea—Sun UV Face, Cellular 3in1 Care Cushion, MicellAir Skin Breath makeup remover, Crayon Color lip balm; Labello—Lips3Kiss; Eucerin—pH5 Light Lotion, Anti-Pigment; La Prairie—Caviar Premier, Platinum Rare Cellular Night Elixir, Skin Caviar Essence-in-Foundation; Hidrofugal—Doppelschutz Deo; Coppertone (acquisition).

    Comments: Corporate sales rose 2.5%, but consumer product sales increased just 1.6%. Sales of skin, sun and hair care products were strongest in North America, Asia, Africa and Australia. The Middle East and Europe also saw positive growth, albeit at a relatively low level in the case of the latter region. Only in South America did the growth rate fall short of the previous year’s figure, according to Beiersdorf. In some emerging markets, the company posted double-digit gains. Nivea and the Derma business unit, which includes the Eucerin and Aquaphor brands, once again achieved healthy growth rates overall. Beiersdorf said results for La Prairie were outstanding.

    Sales of Nivea grew organically by 2.8% globally. The key growth drivers were body, shower and sun. In these categories, Body Pleasure, which was introduced in the previous year, as well as the newly launched body mousses and the Sun face care range, were significant growth drivers. Innovations, such as the Deep range for men, and the face-cleansing MicellAir Skin Expert range, contributed substantially to growth.

    Overall, Nivea maintained its strong position despite various challenges in the markets. In the body category, the brand added market share particularly in Saudi Arabia, India and Mexico. Nivea shower was particularly strong in Germany. In the deodorant category, market share gains were achieved in Indonesia and Mexico. At country level, Nivea achieved especially positive growth in market shares in Germany, India, Saudi Arabia and Mexico. A decline in market share was seen particularly in Thailand, Italy and Poland.

    The Derma business unit increased sales by 5.9% on gains in the US, Germany and Thailand. Eucerin’s main categories, body, face and sun as well as Aquaphor played an especially large part in growth.

    In the selective cosmetics segment, the La Prairie brand increased organic sales by a whopping 38.5%. Growth came from higher sales in the travel retail business, especially at airports, and the Skin Caviar Collection (particularly Skin Caviar Liquid Lift). The newly launched Platinum Rare Cellular Night Elixir and White Caviar Crème Extraordinaire were also major growth drivers. Sales performed especially well in China, Hong Kong, Australia and North America.

    Sales in the Europe region grew 2.8% to nearly $3.5 billion. In Western Europe, sales were up 3.9% due to big gains in Germany and the UK. In contrast, sales in France and Greece declined. Within the region, sales of Nivea shower, deo and sun rose. The Derma segment also showed encouraging growth. Sales growth was significantly influenced by the very good performance of the La Prairie brand’s travel retail business.

    In Eastern Europe, sales were 5.3% higher than in the previous year. This increase was driven by big gains in Russia, Poland, Serbia and Romania as well as by double-digit growth in Ukraine. Nivea Deo, Face and Universal Creams performed especially well. Eucerin also saw strong growth in the region.

    Sales in North America climbed 7.3% compared with the previous year. Nivea Body was especially successful. The Derma business unit and La Prairie both saw double-digit growth in the region. In Latin America, sales were down 2.8%, due to a big decline in Argentina. In Brazil, sales were slightly lower than in the previous year. Excellent growth was recorded in Mexico. Nivea Body, Universal Creams, Shower and Men performed especially well.

    Sales in Africa/Asia/Australia rose 4.2% on double-digit growth in India, Indonesia and Turkey, as well as very good growth in Africa and a good development in Thailand. In particular, Nivea Deo, Body and Face all performed very well. Eucerin and La Prairie posted double-digit growth rates.

    CEO Stefan De Loecker took the helm on Jan. 1, 2019. In other moves, Ralph Gusko, a member of the executive board since July 2011 and until now responsible for brands, R&D as well as the Asia Pacific region, will leave the company by mutual consent. He will continue to be responsible for the Asia Pacific region latest until the end of 2019.

    Asim Naseer was appointed to the executive board as chief marketing officer for consumer brands. Ramon A. Mirt was named to the executive board in charge of Near East and Americas regions.
    Management of the Beiersdorf Group’s consumer business segment is now overseen by the new executive committee, which commenced at the start of 2019. Aside from the group executive board, the committee includes the global head of research and development Dr. May Shana’a, as well as then global head of supply chain Harald Emberger.

    For the first quarter of 2019, corporate sales rose 7.8% to nearly $2.2 billion. Consumer product sales increased 6.8% to nearly $1.8billion. In the first quarter of this year, Beiersdorf successfully launched its new C.A.R.E.+ business strategy, that has been announced in late February. With this multi-year investment initiative, Beiersdorf will put an extra €70 to 80 million annually into internationalization, innovation, digitalization, and up-skilling of workforce.

    In May, Beiersdorf agreed to purchase Coppertone from Bayer for $550 million. Founded in 1944, Coppertone, was the first sun care brand in the US. It had sales of $213 million last year.

    “This transaction demonstrates our commitment towards competitive, sustainable growth and investment in skin care outlined in the new C.A.R.E.+ strategy. Skin care is at the heart of Beiersdorf—and caring for skin health through sun protection has been an essential pillar of our business for over 60 years,” said Beiersdorf CEO Stefan De Loecker. “We are pleased to offer the iconic Coppertone brand and its dedicated, experienced employees a new home next to Nivea Sun and Eucerin Sun. The sun care pioneers of Europe and the US will join forces under one umbrella to provide trusted sun protection to consumers around the world. We are convinced that Coppertone and its team will add complementary expertise to our leading brand portfolio and significantly strengthen our position, particularly in the US.” 
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