Beauty and personal care manufacturer Beiersdorf reported sales of €4.9bn for the first half of 2023, up by 12.3% on the same period in 2022.
As a result, the German multinational has raised its sales forecast for the second time this year.
Global success for NIVEA
The company's strong revenue was driven by the global success of NIVEA, which was up by 17.9% YoY, and the dermatological brands Eucerin and Aquaphor, which were up by 26.1% YoY.
All Consumer Business skin care categories posted impressive, double-digit growth in the first half of the year, which was led by the sun protection and lip care business.
Demand for sun protection was exceptionally high, especially in the North America and Latin America regions.
NIVEA sales were also strong in China and Japan and in the earnings call conference CEO Vincent Warnery said South Korea was one of the fastest-growing markets for the brand.
The business also said it had further expanded its market share for the Derma brands, particularly in the anti-ageing, body care, and sun protection categories.
In the emerging markets, Beiersdorf said its face care and body care ranges are currently outperforming competitors. Warnery also said that ecommerce sales are strong in these countries, with a 48% ecommerce growth rate.
The travel retail division saw strong momentum in Asia, Europe and the Middle East.
While the company’s Healthcare business, which includes Hansaplast and Elastoplast, posted organic sales growth of 5.4% and further expanded its market share, with especially good results in Latin America and India.
La Prairie sales drop by 9.9%
On the other hand, the company’s prestige skin care brand La Prairie saw sales decrease by 9.9%, which Beiersdorf attributed to “considerable disruption in Asian travel retail markets caused by 'daigou' business.” It said the Chantecaille brand was also affected by this issue.
Daigou shoppers purchase goods abroad on behalf of domestic customers, offering these customers tax and price advantages over domestic retailers. Beiersdorf said it welcomes recent government measures to reduce China's daigou business, even though this has negatively affected the luxury cosmetics business in the second quarter.
Beiersdorf CEO Vincent Warnery said that NIVEA is compensating for the losses faced by La Prairie.
In a company statement he shared: “Both NIVEA and the Derma brands grew strongly in all regions and categories and more than offset the weaker performance of our luxury business. These positive results give us confidence for the next months, even though we still expect headwinds in some areas. We are therefore increasing our sales forecast for the Consumer Business Segment and the Group.”