Beiersdorf’s derma category drives €7.3B sales amid pressure on luxury segment from Chinese “daigou” culture

(Image credit: Beiersdorf)

01 Nov 2023 --- Beiersdorf has recorded 11.2% organic growth and sales climbing to €7.3 billion (US$7.7 billion) in its third quarter. While this was led by its core skin care brands, performance in its luxury category was affected by the emergent “daigou” surrogate shopping culture in China and Korea.

The main drivers of Beiersdorf’s favorable results were identified as the global businesses of Nivea and brands Eucerin and Aquaphor in the Derma category.

Meanwhile, the group’s Consumer Business Segment saw organic sales growth of 13.6%, generating sales of €6 billion (US$6.3 billion).

“We again achieved exceptional double-digit growth in the first nine months of this year, despite the challenging situation in the luxury markets and the economic volatility all around the globe,” comments Vincent Warnery, CEO at Beiersdorf.

Eucerin and Aquaphor carried momentum forward with organic sales growth of 24.8% in the first nine months of 2023 (Image credit: Beiersdorf).“This achievement reinforces our continued growth ambition, and we are therefore raising our sales guidance for the full year.”

Beiersdorf now expects low-double-digit organic sales growth and has confirmed its forecast for an EBIT margin excluding special factors at 50 bps higher than in the previous year.

Nivea and Derma business drives growth
Nivea and Labello recorded broad-based growth of 17.5%. All regions achieved double-digit growth, as did both the Personal and Skin Care categories and all main sub-categories, discloses Beiersdorf.

A strong driver especially in the third quarter was the “exceptional” performance of the Nivea Luminous series in the Face Care category. All regions were reported to have delivered double-digit growth.

The Derma brands Eucerin and Aquaphor also carried momentum forward with organic sales growth of 24.8% in the first nine months of 2023. This was led by the global success of the Sun Care product range, the continued growth of the e-commerce business, and the Derma portfolio in Latin America.

Multiple product launches, many of them featuring the hero ingredient Thiamidol, contributed significantly to the overall growth and helped to strengthen Beiersdorf’s positions in the respective markets, reports the group.

“Daigou” impact on luxury sales
La Prairie, Beiersdorf’s luxury brand, saw its sales decline by 15.8% in the first three quarters of the year.

As previously reported, the decline was mainly due to the continued negative influence of the “daigou” business culture on the Chinese and Korean travel retail market — in which buyers outside these markets purchase commodities to sell to customers at a cheaper rates — and a subsequent decision to actively destock and strongly reduce inventory at the retailers.

In contrast, Beiersdorf has observed accelerated third quarter growth in other travel retail markets such as Japan, Hong Kong and Europe, as well as local market growth in the rest of Asia.

The group’s Healthcare business — which mainly comprises the plaster business of Hansaplast and Elastoplast — recorded organic sales growth of 4.3% against a strong prior-year performance.

“The consistent implementation of brand innovations, such as specifically large sized plasters for post-operative wound care, helped to increase market share and drove sales growth in all key markets, including Germany, Australia and Indonesia,” details Beiersdorf.

In other financial updates, dsm-firmenich and Unilever disclosed their Q3 performance.

By Benjamin Ferrer

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