Beiersdorf Delivered a Strong Start with Sales Increased to $2.74 billion Q1
- Chaileedo Press
- Apr 27, 2023
- 2 min read
After completing a successful financial performance in 2022, Beiersdorf delivered a strong start to the 2023 financial year, with organic sales in the first quarter reaching €2,481 million ($2,740 million), which represents a 12.2% increase from the previous year.
After completing a successful financial performance in 2022. Beiersdorf delivered a positive start to the 2023 financial year, with sales in the first quarter reaching €2,481 million ($2,740 million), which represents a 12.2% increase from the previous year.
In terms of the business segment, the Consumer Business Segment of Beiersdorf earned €2.1 billion ($2.32 billion) in sales and experienced significant organic sales growth of 14.8%. The Derma business, which includes the Eucerin and Aquaphor brands, had a remarkable performance, and NIVEA had an exceptional first quarter, especially in Europe and Emerging Markets. The tesa Business Segment achieved 0.9% organic growth year-on-year, with sales of €424 million ($468.31 million) in the first quarter.
In terms of the main brands, In the first quarter, the core brand of the Beiersdorf, NIVEA experienced impressive organic growth of 18% year-on-year, primarily driven by the growth of sun care, lip care, deodorants, and face care categories. The growth was supported by price increases and a positive volume contribution across the entire product portfolio. NIVEA achieved double-digit growth in all major markets.
The Derma brands, Eucerin and Aquaphor, also showed remarkable performance, with organic sales growth of 26.9%. The US market continued to show strong demand for these brands, particularly in the sun care category.
Beiersdorf's luxury brand, La Prairie, experienced a 12% decline in sales during the first quarter. This was primarily due to challenging market conditions in China, resulting from changes in Covid policies, which had a significant impact on the brand's strong travel retail business. However, retail sales in China have shown significant recovery since February, starting with brick-and-mortar retail and, more recently, in travel retail as well.
Vincent Warnery, the CEO of Beiersdorf said: “Beiersdorf had an excellent first quarter. Our efforts to transform NIVEA are clearly paying off: Our brand icon grew in all regions and March was actually the best month in the history of the brand. With strong, double-digit sales growth, NIVEA in Europe and in the Emerging Markets, along with our successful Derma business, compensated for a difficult quarter at La Prairie – one that was negatively impacted by the effects of the Corona lockdown in China.” Vincent Warnery added: “That clearly shows that we’re like a four-wheel drive vehicle: If one wheel loses traction, the others will keep the vehicle moving forward. That gives us even greater stability and security in times shaped by volatility and crises.”
Beiersdorf said the company expects the Group's organic sales growth to be in the mid-to-high single digit range. The company also expects that the Group's EBIT margin (excluding special factors) will slightly exceed the previous year's level.
Source: Beiersdorf
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