Beiersdorf wants to expand online business

Beiersdorf grew significantly again in the first half of the year.  The company was able to accelerate its development in the second quarter.  The driver was the adhesives business Tesa, but the consumer business with the Nivea brand also increased significantly again.  Investors reacted with satisfaction: the share rose by more than 5 percent towards Thursday noon, making it one of the biggest winners in the MDax.



 3.9 billion euros in sales


Sales rose by 12.3 percent to 3.9 billion euros, as the company announced.  Organically, i.e. adjusted for currency effects as well as acquisitions and sales, the increase was 16.2 percent.  The skin care brands Nivea, Eucerin and LaPrairie posted significant increases.  And the US sun protection brand Coppertone, which Beiersdorf bought around two years ago, is also on the right track.



 The integration of the acquisition has now been completed.  In the first six months, the brand was able to achieve double-digit sales growth.  And for the first time since 2012, Coppertone was able to regain market share in the competitive sun protection market in the USA, explained CEO Vincent Warnery in a conference call.  The Frenchman had only taken over the helm at Beiersdorf three months ago after his predecessor Stefan De Loecker had to leave the company by surprise.



 Warnery sees room for improvement overall in the online business.  In the first half of the year, e-commerce growth accounted for a quarter of the growth in Beiersdorf's bulk business.  "In the derma area it was even a third of the growth."  Online sales are currently around 9 percent.  "This proportion should continue to increase, that's right at the top of my agenda."  A large part of the current EUR 300 million investment program is therefore to be used for digital expansion.



 Online shop on Tmall from Alibaba


 Beiersdorf is making progress in the Chinese market and recorded growth of 44 percent compared to 2020 and 12 percent compared to 2019 in the first half of the year. Beiersdorf even decided to use a purely digital strategy for marketing Eucerin.  "With our own online shop on Alibaba's Tmall, we succeeded in rapidly expanding Eucerin’s online presence. The aim is to gradually be represented on all leading digital platforms in China," said Warnery.



 Another important pillar is the adhesive tape specialist Tesa, which has a strong presence in both the consumer business and industry.  Tesa was able to increase sales by a good quarter in the first half of the year.  The largest drivers were the electronics business in Asia and the global recovery in the automotive industry.  One Tesa focus is currently on thermally conductive adhesive tape solutions for smartphones and smartwatches.  In the automotive sector, Tesa benefits from e-mobility and automation, in which protection against heat and fire plays a major role.



 The adjusted operating result (EBIT) of the group increased in the first half of the year by a good quarter to 595 million euros, which was more than expected by analysts.  After taxes, Beiersdorf earned 404 million euros - almost 40 percent more than in the previous year, which was weak due to the pandemic.  The Group reaffirmed its earnings forecast and expects an adjusted operating margin (EBIT) at the previous year's level due to high investments.  In addition, higher raw material and transport costs have a dampening effect.  The company is therefore considering price increases in the second half of the year.  Sales should grow in the higher single-digit percentage range.


by INTERNET WORLD Business, internetworld.de

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