Sales: $6.9 billion
Thomas B. Quaas, chairman; Dr. Bernhard Düttmann, executive board member, finance/human resources; Markus Pinger, executive board member, brands/supply chain; James C. Wei, executive board member, Asia
Nivea, Labello, SBT Skin Biology Therapy, Eucerin, La Prairie, 8 x 4, Florena and SLEK skin care brands
Nivea—Good-bye Cellulite Fast-Acting Serum, My Silhouette Redefining gel cream, Skin Firming Moisturizer Q10 Plus, Nivea for Men Silver Protect, Shower Crème Oil; La Prairie—Midnight Blues color collection, Cellular Eye Cream Platinum Rare, Cellular Radiance Emulsion SPF 30 (September), Anti-Aging Neck Cream (October), Life Threads, Life Threads Gems (October)
Corporate sales fell less than 1%, while personal care sales actually grew 1.2%. China and Latin America posted double-digit sales growth, and Eastern Europe, the U.S. and Germany also exceeded 2008 sales. In contrast, sales declined in Western Europe, the company reported.
By brand, sales of Nivea rose 1.3%, due to strong demand for Nivea deodorant, which received a boost from the launch of Nivea for Men Silver Protect, as well as Nivea Bath Care and Nivea Shower Crème Oil. However, Nivea Body Care sales fell.
Sales of Eucerin jumped 6.5% driven, for the most part, by the relaunch of Eucerin Sun Protection and strong demand for the Eucerin Body series in the U.S.
The economic slowdown wreaked havoc on prestige beauty sales, which is why sales of La Prairie tumbled 8.7%.
The good news is that results were better in the first quarter of 2010. Group sales rose 6.9% to $2.1 billion. Consumer product sales rose 4% to $1.8 billion.
“In the first quarter of 2010, we showed that we are back on a growth path. Our development has yet to quite match our ambitious growth expectations, but we are on the right track,” said chief executive officer Thomas B. Quaas. “Beiersdorf’s growth will outperform the market in the coming years. In order to leverage our growth potential even more effectively, we are focusing more strongly on our core competencies while at the same time increasing our regional flexibility in Europe, Asia and the Americas in particular. This will ensure that our business can stand out even more from the crowd.”
Looking toward the future, Quaas said he expects the next few years will be shaped by uneven growth in global markets, changed trade structures, increasing consumer interest in low prices with an excellent price to performance ratio and intensified competition from private label manufacturers.
To successfully navigate this new reality, the executive board has decided to further develop its successful strategy with two core elements: “Focus on skin care. Closer to markets.”
“Fifty percent of the expected growth in the global cosmetics markets will occur in the skin care category. This translates into excellent growth opportunities for Beiersdorf, because skin care has always been our core competence,” explained Quaas at an internal executive managers meeting in Hamburg. “With innovative product developments, flat organizational hierarchies and quicker decision processes, we will be able to respond to local consumer wishes even more flexibly and align ourselves even more precisely with the respective market development.”
Effective May 1, the executive board was reorganized into three functional and three regional areas of responsibility. Quaas remains chairman of the reorganized executive board, board member Pieter Nota continues to be responsible for marketing and innovation, while Dr. Bernhard Düttmann remains in charge of finance and added human resources responsibilities. Markus Pinger added responsibilities for the Americas region, and continues to be in charge of the global supply chain and James C. Wei heads up the Asia region. On Sept. 1, Peter Feld will take over as executive board member for Europe, which had been managed by Quaas on an interim basis.
For the full year 2010, the Beiersdorf Group said it will generate organic sales growth in excess of the market, driven by gains in China, Russia and Brazil.