Beiersdorf AG Q3 2024 Conference Call
Beiersdorf AG (ETR:BEIG) (BEI.DE), the global skincare company, reported a strong financial performance in its third quarter conference call on October 25, 2024. CEO Vincent Warnery and CFO Astrid Hermann announced that the group achieved an organic sales increase of 6.5% for the first nine months of 2024, driven by a 7.3% rise in consumer sales and a 3.1% growth in tesa sales.
The NIVEA brand showed a notable 9.4% growth, while the Derma brands Eucerin and Aquaphor increased by 8.8%. Despite a 7.3% decline in La Prairie sales due to weakness in the Greater China market, the company remains confident in its full-year guidance and is optimistic about its innovation pipeline.
Key Takeaways
- Beiersdorf's organic sales increased by 6.5% at the group level, with consumer sales up 7.3% and tesa sales growing by 3.1%.
- NIVEA brand sales grew by 9.4%, and Derma brands Eucerin and Aquaphor saw an 8.8% increase.
- North America business rebounded with an 11.1% growth, supported by double-digit increases in Eucerin and Aquaphor.
- La Prairie sales declined by 7.3%, mainly due to the Greater China market affecting travel retail.
- The company expects Consumer Business organic growth between 6% and 8% and tesa's growth in the range of 2% to 5%.
Company Outlook
- Beiersdorf anticipates a consolidated EBIT margin slightly above the previous year.
- The company is optimistic about the performance of new products, including the anti-aging innovation Epicelline.
- Focus on innovation and sustaining core business growth through strategic launches and marketing, aiming for strong performance in 2025.
Bearish Highlights
- La Prairie faced a significant decline in sales, particularly in China, with travel retail down 35%.
Bullish Highlights
- La Prairie is gaining market share and experiencing 30% growth in e-commerce and 34% growth in Japan.
- Beiersdorf is combating parallel trading risks in China and has seen a reduction in the Daigou phenomenon.
- Chantecaille's successful launch in China positioned it as the 6th most influential international boutique brand in the country.
Misses
- La Prairie's sales decline in Greater China and travel retail sectors.
Q&A Highlights
- Beiersdorf will not limit marketing spend in Q4 2024, focusing on brand growth.
- CEO Vincent Warnery expressed confidence in outperforming the market in 2025, with stable inflation and improved supply chain conditions.
- The company is planning significant growth opportunities for Eucerin and expanding La Prairie into new markets like India.
- Full-year figures for 2024 will be released on February 27, 2025.
Beiersdorf's commitment to innovation and strategic marketing, along with focusing on emerging markets and brand equity protection, demonstrates a proactive approach to overcoming current challenges and achieving long-term growth. Despite regional setbacks, the company's overall positive performance and future plans indicate a strong outlook for coming years.
Full Transcript – Beiersdorf Q3 2024:
Christopher Sheldon: Thank you, Sasha… [and continues with discussions]
Vincent Warnery: Thank you, Christopher… [and continues with detailed performance analysis]
…
Victoria Petrova: When you were providing guidance… [continues with inquiries about guidance impact]
Vincent Warnery: …we are today in three countries… [and continues with broader insights]
Christopher Sheldon: Thank you for all your questions… [concludes call]
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