Skincare company Beiersdorf has reported double-digit organic sales growth of 10.8% in its 2023 financial year, to a ‘record high’ of €9.5 billion.
EBIT, excluding special factors, for the period increased to €1.27 billion – up from €1.15 billion in 2022 – resulting in an increased EBIT margin of 13.4%, from 13.2% the previous year, the company added.
Vincent Warnery, CEO of Beiersdorf, stated, “We continued our remarkable growth trajectory of recent years, again achieving double-digit organic sales growth in a difficult market environment.
“We were the fastest-growing beauty company worldwide in 2023, and we kept our promise of profitable growth.”
Nivea
Beiersdorf added that the Nivea brand – including Labello – delivered its best performance of the century, surpassing the €5 billion sales threshold for the first time in its history.
Nominal sales of €5.2 billion in 2023 translated into organic growth of 16.2% for Nivea.
All regions and categories contributed to the brand’s results, while it also reported a strong performance in its e-commerce business, wherein it gained market share.
In addition, Nivea’s face-care category was a powerful growth driver, with organic sales growth of 18%, compared to 2022.
It also outperformed the market with its Luminous series, which expanded into new categories in 2023.
Warnery added, “The strategic recalibration of Nivea’s operating model toward a more globalised and digital approach is producing the desired results and laying the foundation for continued growth.”
Divisional Performance
Beiersdorf’s consumer business segment generated sales of €7.8 billion in 2023, registering organic sales growth of 12.5%.
The company attributed its performance to the balance between volume and pricing, as well as efficient cost management.
It was also boosted by the solid performance of its e-commerce business, which outperformed the market in 2023, with growth of 19%.
Beiersdorf achieved double-digit growth in nearly all regions, with the Latin American subregion witnessing the biggest increase, of 25.6%.
The derma business, which includes the brands Eucerin and Aquaphor, registered organic sales growth of 24.0%, driven by the global outperformance of the sun-care product range, the continued expansion of the e-commerce business, the popularity of products featuring Thiamidol, and the success of the portfolio in Latin America, the Middle East and Africa.
The healthcare business, which mainly comprises the plaster brands Hansaplast and Elastoplast, reported organic sales growth of 4.2%, with sales amounting to €267 million.
The luxury and selective brands La Prairie and Chantecaille faced a difficult market environment in the travel retail business and in mainland China in 2023.
As a result, both brands witnessed a decline in organic sales – La Prairie saw sales fall by 15.4%, while Chantecaille reported a decline of 18.4%.
Elsewhere, the Tesa business unit reported a 3.2% increase in organic sales, to €1.7 billion, for the full financial year.
Outlook
Beiersdorf hopes to achieve above-market sales growth in full-year 2024, with organic sales growth expected to be in the mid-single-digit range and consolidated EBIT margin, excluding special factors, slightly above the previous year’s level.
Warnery stated, “[The company’s performance in 2023] makes us confident in our vision to become the best skincare company in the world – a vision that requires continuous progress.
“Twenty twenty-three [2023] was also a year marked by substantial strategic investments in our digital and physical infrastructure, our innovative strength, our sustainability progress, and in our people. These steps will ensure that we can deliver continued strong growth in the future.”
