Beiersdorf (BEI) Q2 2024 earnings summary

Executive summary

• Achieved 7.1% organic group sales growth in H1 2024, with consumer segment up 8% and tesa up 2.9%.

• Outperformed the market, gaining share across brands and regions, especially with NIVEA and Derma.

• E-commerce sales rose 16% with share up 88bps, and innovation initiatives advanced, including NIVEA relaunch and new product launches.

• Share price closed H1 2024 at €136.55, supported by dividend increase and share buyback.

• Confirmed full-year guidance for 6%-8% organic sales growth and EBIT margin expansion.

Financial highlights

• Group sales reached €5,175m (+4.8% nominal, +7.1% organic); EBIT (excl. special factors) was €838m, margin at 16.2%.

• Profit after tax was €590m; EPS increased to €2.57.

• Gross margin improved by 110bps year-over-year to 61.2%.

• Working capital ratio to net sales improved to 5.6%.

• Marketing spend rose to 25.9% of sales, with digital up 1.5pp.

Outlook and guidance

• Group organic sales growth expected at 6%-8% for 2024, with EBIT margin slightly above previous year.

• Consumer segment EBIT margin (excl. special factors) to expand by 50bps; tesa EBIT margin to remain stable.

• Guidance range depends on La Prairie and North America performance; aiming for upper end of range.