Beiersdorf AG (BDRFF) Q3 2024 Earnings Call Highlights: Strong Consumer Sales and Challenges in ...

GuruFocus News
4 min read

In This Article:

  • Group Organic Sales Growth: 6.5% for the first nine months of 2024.

  • Consumer Sales Growth: 7.3% organic growth.

  • Tesa Sales Growth: 3.1% organic growth.

  • NIVEA Sales Growth: 9.4% year-to-date.

  • Derma Brands Sales Growth: 8.8% organic growth for Eucerin and Aquaphor.

  • Healthcare Sales Growth: 5.1% for Hansaplast and Elastoplast.

  • La Prairie Sales Decline: 7.3% organic decline.

  • North America Sales Growth: 11.1% in Q3.

  • Derma Sales Growth in US: 19.6% in Q3.

  • Aquaphor Sales Growth: 16% organic growth in Q3.

  • Chantecaille Sales Growth: 4.9% in Q3.

  • Group Sales Growth in Q3: 5.3%.

  • EBIT Margin Guidance: Expected to be 50 basis points above the previous year's level for Consumer Business.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Beiersdorf AG (BDRFF) achieved an organic sales increase of 6.5% at the group level in the first nine months of 2024, aligning with their full-year guidance.

  • The consumer sales grew by 7.3%, with NIVEA showing impressive growth of 9.4%, outperforming key competitors.

  • Derma brands Eucerin and Aquaphor achieved strong organic sales growth of 8.8%, driven by double-digit growth in North America.

  • The healthcare business, including Hansaplast and Elastoplast, reported substantial sales growth of 5.1%.

  • The company is optimistic about its innovation pipeline, particularly with the upcoming launch of Eucerin Thiamidol in North America, which is expected to drive future growth.

Negative Points

  • La Prairie experienced a decline of 7.3% in organic sales, primarily due to the continued weakness in the greater China ecosystem and its impact on the travel retail market.

  • The luxury market in China remains challenging, affecting La Prairie's performance, with the market down significantly in the third quarter.

  • The automotive industry, particularly in Europe, is facing challenges, impacting the Tesa business segment.

  • The sun care segment underperformed in the third quarter, despite a positive start to the year.

  • Beiersdorf AG (BDRFF) remains cautious about the short-term outlook for La Prairie, given the ongoing difficulties in the Chinese luxury market.

Q & A Highlights

Q: Can you provide more details on the performance of sun care products in Q3 and how it impacted NIVEA and Derma? Additionally, how should we view the growth phasing into Q4? A: Sun care had a positive evolution in the first half with double-digit growth, but Q3 was below expectations due to a poor sun season. Despite this, Eucerin Sun grew double-digit and NIVEA Sun high single digits over nine months. Regarding growth phasing, Q3 had tough comparatives due to last year's price increases, but Q4 is expected to be more favorable, making us optimistic for the fourth quarter.

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