Beiersdorf Expecting Sales To Grow By 'High Single Digits' This Year
Beiersdorf, the maker of Nivea, expects its 2021 group sales to rise by close to 10% this year, as strong demand pushed its first-half revenues above pre-pandemic levels.
“Performing above pre-crisis level with our strong half-year results is proof that we consistently deliver on the right priorities through our C.A.R.E.+ strategy," commented Vincent Warnery, chief executive of Beiersdorf AG.
"We successfully managed to improve both sales and profitability compared to last year’s first half – despite still volatile market conditions. This is the momentum we want to use going forward."
Under Warnery's predecessor Stefan de Loecker, Beiersdorf invested more in its consumer business to revive slowing sales growth and bought U.S. sun care brand Coppertone from Bayer for $550 million to strengthen its position in North America.
Beiersdorf Sees Sales Rise
Organic sales jumped by 28.3% in the second quarter, bringing growth for the first half to 16.2%. Six-month revenues of €3.87 billion were a tad above consensus for €3.82 billion, according to Refinitiv IBES data.
The Hamburg-based firm, which recently unveiled plans for a new European hub in Leipzig, said it sees full-year group sales growing by a high single-digit percentage, having previously said only that it saw positive sales growth for 2021.
Beiersdorf's first-half margin on EBIT (earnings before interest and tax) widened to 15.3% from 13.7%. For the full year, however, it expects the margin to remain flat from 2020 due to rising material prices and investments in digitisation and innovation.
These investments form part of the group's C.A.R.E.+ strategy, launched in 2019, under which the group is aiming to drive efficiency and boost digitalisation across its business, while also driving sustainability.
It announced that it plans to invest an additional €300 million in its digital programmes in order to 'fully leverage the potential of the digital transformation'.
“We will further accelerate the C.A.R.E.+ strategy by tapping new business areas, by further driving profitability, and by fostering the digital transformation of Beiersdorf and our industry," commented Warnery.
The group recently announced a donation of €1 million to help those affected by the recent flooding in Germany.