Beiersdorf AG Reports Strong H1 2024 Growth, Confirms Guidance

Beiersdorf AG, the global skincare company, reported strong financial results for the first half of 2024, showing notable organic sales growth and an increase in market share across its brands. Organic sales rose by 7.1%, with the consumer segment, including well-known brands NIVEA and Derma, growing by 8%. The Tesa business also experienced significant organic sales growth.

The company reaffirmed its sales and EBIT guidance for the full year, underscoring its focus on innovation and expansion in key markets such as India and China. Despite facing challenges in the luxury sector in China due to a sluggish economy, the La Prairie brand outperformed the market, particularly in e-commerce. The profit after tax margin was reported at 11.4%, with earnings per share slightly increasing from EUR 2.56 to EUR 2.57.

Key Takeaways

• Beiersdorf experienced strong organic sales growth of 7.1% in H1 2024.
• The consumer segment grew by 8%, with notable performance from NIVEA and Derma brands.
• Tesa reported double-digit organic sales growth.
• The company confirmed its full-year sales and EBIT guidance.
• Strategic initiatives emphasize becoming the leading skincare company globally.
• La Prairie faced challenges in the Chinese market but showed resilience, while Chantecaille grew by 4.8%.
• Plans are in place to expand the Luminous630 range and launch Epicelline in crucial markets.
• Profit after tax margin remained steady at 11.4%, with a slight increase in earnings per share.

Company Outlook
Beiersdorf anticipates ongoing strong performance, focusing on skincare innovation and global expansion. It maintains its full-year 2024 sales guidance, expecting organic growth of 6% to 8% for the consumer segment and 2% to 5% for Tesa. The company also expects a slightly higher consolidated EBIT margin compared to the prior year.

Challenges and Opportunities
On the bearish side, La Prairie’s growth in China has slowed due to the economic downturn and decreased luxury spending. The Derma segment saw slower growth in Q2 but is anticipated to recover with new product launches. The economic situation in Argentina led to significant declines in organic and nominal growth.

Conversely, La Prairie is outperforming the market in China, and positive trends are emerging in North America, with the company confident in managing market share against private labels and optimistic about the latter half of the year.

Q&A Highlights
During a recent conference call, company executives provided insights on their expectations for growth in China, product launches, and ongoing negotiations with retailers regarding pricing strategies. The focus remains on innovation, particularly with new products, and managing performance amidst a challenging economic environment.

Beiersdorf continues to navigate a complex global market with strategic initiatives aimed at reinforcing its position as a leader in skincare. The commitment to innovation and sustainability, along with strong financial performance in the first half of 2024, sets a positive tone for the rest of the year. The next investor relations event will include the release of nine-month sales figures on October 24.