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    Top Companies Report

    Beiersdorf

    ...

    Beiersdorf
    7. Beiersdorf
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    08.03.20
    Germany
    www.beiersdorf.com
    Sales: $7.0 billion

    Note: $7.0 billion for skin care and personal care products. Corporate sales: $8.5 billion

    Key personnel
    Stefan De Loecker, chief executive officer; Members of the Executive Board—Thomas Ingelfinger, Europe (excluding Germany and Switzerland); Zhengrong Liu, Greater China/Northeast Asia; Ramon A. Mirt, emerging markets; Asim Naseer, cosmetic brands; Dessi Temperley, finance and quality; Vincent Warnery, pharmacy and selective; Executive Committee—Harald Emberger, corporate senior vice president, supply chain; Dr. May Shana’a, corporate senior vice president, research and development

    Major Products
    Skin care: Nivea, Eucerin, La Prairie, Labello, Florena, 8x4, Atrix, Aquaphor, Hidrofugal, Gammon. Hair care: Slek and Maestro

    New products
    Nivea Cellular anti-aging skin care, facial cleansing oils, Elixir Deo, Sun Sensitive Immediate Protection; Nivea Men Sensitive All-in-One Balm; Eucerin Sun Pigment Control LSF50+, Atopic Control Balm, Hyaluron-Filler Moisture Booster and Hyaluron-Filler Vitamin C Booster; La Prairie Platinum Rare Cellular Life Lotion and Skin Caviar Eye Lift; Florena Fermented Skincare color cosmetics, Skin Stories; Acquisitions: Lycl and Coppertone

    Comments: Corporate sales rose 5.8%. Consumer product sales rose 6.5%, helped by a 3% gain from the Nivea franchise. Nivea Body posted good gains in Asia and Latin America. At the country level, results were especially positive in Germany, Thailand and South Africa; while Nivea Face sales rose in Germany, Italy and Brazil. Overall, Nivea gained share in Germany, Thailand, Brazil and South Africa; but lost share in the UK, China and Russia.

    Sales rose 7.5% in the Derma business unit, with good gains in the US, Germany, Asia and South America. Eucerin’s sales were up on the launch of an Anti-Pigment range featuring Thiamidol. Consumers see results after two weeks of use.

    In selective channels, La Prairie’s sales surged 20%, propelled by gains in Asian travel retail, and China and Australia.

    By region, sales in Europe rose 2.9%; sales in the Americas increased 8.9%; and Africa, Asia, Australia sales rose 10.8%.

    In February, Beiersdorf laid the foundation for its new headquarters, which will combine about 3,000 state-of-the-art office and laboratory workplaces in new and existing buildings. The company will remain in Hamburg—its home for more than 135 years. Also in February, Beiersdorf launched CARE+, a multiyear strategic program designed to meet the disruptions taking place in the consumer segment. CARE+ has a variety of goals. For example, by 2025, 100% of packaging will be recyclable, compostable or reusable. According to CEO Stefan De Loecker, CARE+ will meet new challenges by increasing consumer centricity through new digital channels and technologies; convincing consumers by offering superior skin care innovations and a strong portfolio of global brands; tapping into new growth markets and business areas; and fulfilling consumers’ expectations by making a decisive contribution to more sustainability.

    In the second half of 2019, Beiersdorf completed its $550 million purchase of the Coppertone brand from Bayer. With sales of about $200 million, Coppertone joins Nivea, which is the No. 1 sun care brand in the world, according to Euromonitor.

    In September, Beiersdorf unveiled a new business unit Oscar&Paul—Corporate Indie Brands Skin Stories—Performance Cosmetics. The initial Skin Stories launch included sun protection stick; body lotion with UV filters; a repair balm that’s said to aid skin regeneration; and defining serum to give tattoos intensive care and strengthen the skin’s structure. All formulas contain something called InkGuard Technology, an active ingredient combination that helps to optimally care for tattoos, according to Beiersdorf.

    In December, Beiersdorf acquired a significant stake in Lycl Inc., a K-beauty startup. Lycl combines three different business models: unpa.me, a review and content platform for K-beauty products, palett.me, an influencer network platform, and unpa.Cosmetics, its own skin care brand. This combination, according to Beiersdorf, leads to the fast creation of data-driven, consumer-centric and highly innovative skin care products. Lycl products are sold solely online.

    The pandemic pushed Q1 2020 sales down 3.6%, as La Prairie was high particularly hard by the drop in international travel. At the same time, Nivea sustained only a slight drop in sales. Of course, Beiersdorf’s health care business is thriving. More specifically, Eucerin and Aquaphor sales jumped 11.5%, while Nivea sales fell 0.6% and La Prairie sales plunged nearly 36%.

    “Beiersdorf’s foundations are strong enough to enable us to master and overcome this unprecedented crisis together and emerge from it stronger in the long term,” said De Loecker. “Despite today’s major economic challenges, we will stay on course with our strategy and will maintain investing in our initiatives under CARE+.”
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