PARIS – Beiersdorf AG posted a strong second quarter and first half and confirmed its full-year 2022 guidance, but said it expected additional headwinds.
The manufacturer of Nivea, La Prairie and Tesa products announced Thursday a turnover of 4.48 billion euros in the first half, up 15.5% in published terms and 10.5% at constant scope. The Hamburg, Germany-based company’s adjusted operating margin was 15.9%.
The results exceeded the expectations of the financial community.
“Implied organic sales growth in the second quarter was 10.7%, versus Visible Alpha consensus of 5.6% (Jeffries 5.5%),” Molly Wylzenk, equity analyst at Jeffries, said in a note. research.
“Three-year growth CAGR increased significantly to 5.2%,” wrote Bruno Monteyne, principal analyst at Bernstein AG. “The pace of organic growth was evenly split between the consumer and adhesives divisions (Tesa), with good growth in key consumer brands despite headwinds (lockdowns in China impacting La Prairie sales ).”
Consumer division sales increased 17.3% in nominal terms and 11.7% on an organic basis to 3.64 billion euros. Sales of the Tesa branch increased by 8.4% in nominal value and 5.4% in organic value to 838 million euros. Beiersdorf noted that all geographies contributed to performance, with significant growth generated particularly in the Americas, where momentum from previous quarters continued.
Sales of Nivea products increased by 11.2% in organic terms during the six months ended June 30. . The suncare, lip, face and bodycare categories drove the brand’s skincare segment, while deodorants and shower gels bolstered its personal care category.
“This strong sales performance was also driven by significant market share gains across the majority of categories,” Beiersdorf said. “The growth of online commerce has once again exceeded that of physical retail.”
Group derma brands Eucerin and Aquaphor reported organic sales growth of 26.6% in virtually all regions, with strong market share and sales gains in mature markets such as the US and Europe. Germany, as well as in emerging markets such as Latin America.
Prestige skincare brand La Prairie recorded organic sales growth of 1.8%.
“In the second quarter, the luxury brand was first hit by COVID-related restrictions and lockdowns in its core market, China,” Beiersdorf said. “However, La Prairie recovered once the restrictions started to ease and had already been achieving very good growth rates since June.”
In North America, in the first half of 2022, La Prairie sales grew at double-digit percentage rates, according to Beiersdorf.
The group said that overall, the positive effects on the EBIT margin from strong sales growth in all regions were partially offset by higher raw material and transport costs.
“In an increasingly challenging environment, Beiersdorf maintained strong momentum from the start of the year into the second quarter and delivered double-digit sales growth at group level,” said Vincent Warnery, Chief Executive Officer of Beiersdorf. AG, in a statement. “We were also able to significantly improve our profitability. In the second half of 2022, we expect additional headwinds from economic and political tensions, and confirm our guidance for the full year.
For 2022, Beiersdorf expects sales growth in the upper mid-single digit range and a consolidated operating EBIT margin at the same level as in 2021.