Beiersdorf, the maker of Nivea and Eucerin, said that it managed to grow market share in the skin care category in the first half of its financial year, the only bright spot in an otherwise torrid period that was significantly impacted by the COVID-19 pandemic.
In the half-year period to 30 June, Beiersdorf saw sales drop 10.7% in organic terms, to €3.45 billion.
Looking ahead to the remainder of the year, the group said that it expects sales growth to be negative across its operations, while EBIT margin is expected to be 'significantly below' that of the previous year.
First-Half Performance
Beiersdorf's Europe business saw sales down 11.8%, the Americas market fell by 3.4%, and its Africa/Asia/Australia arm dropped by 13.0%, it said.
EBIT stood at €472 million for the period, down from €593 million a year earlier, with EBIT margin coming in at 13.7%.
“In this extremely turbulent year, our business has been strongly impacted by the COVID-19 pandemic," commented Stefan De Loecker, Beiersdorf chief executive.
"The entire skin care market significantly declined and, as a consequence, the effect on sales was clearly felt in the first half of 2020."
Consumer Business
In its core Consumer Business segment, organic sales fell by 10.9% in the first half, with Europe down 12.8% and Africa/Asia/Australia down 14.4%, however its Americas business posted a 1.5% increase, boosted by a positive Latin America performance.
Sales of its Nivea brand fell by 8.8% in the half-year period, La Prarie fell by 41.0%, while its Healthcare business, mainly comprising the plaster business, recorded a 7.7% fall in sales.
Its Derma business unit, which includes the Eucerin and Aquaphor brands, posted a 6.2% sales increase.
“The COVID-19 pandemic is unfortunately not over yet and the situation remains exceptionally volatile, De Loecker added. "But as we are determined to emerge stronger from this unparalleled crisis, we are continuing to further invest in the initiatives of our C.A.R.E.+ strategy.”
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
