The German company plans to offset rising costs of raw materials by increasing prices and cutting costs, targeting a small increase in its operating margin in 2022, finance chief Astrid Hermann told analysts on Thursday.
Beiersdorf made the forecasts after reporting third-quarter sales rose an underlying 4.3% to 1.9 billion euros ($2.2 billion), shy of some analysts’ forecasts.
Beauty specialist L’Oreal last week posted third-quarter organic revenue growth of 13.1%, fuelled by demand for its luxury lines and growth in China. [nL1N2RH1TG[
Beiersdorf shares, about to re-enter Germany’s blue-chip index, opened down 1.5%.
Its consumer business saw third-quarter organic sales rise 4.1%, driven by a strong performance of Eucerin and Aquaphor creams, as well as premium brand La Prairie, which had been hit by the halt to global travel due to the coronavirus pandemic.
As people returned to beaches, the Nivea brand saw a strong recovery of sun creams as well as shower gels and deodorants. Beiersdorf said it planned to launch its Eucerin Sun line in the United States at the start of 2022.
Chief Executive Vincent Warnery told analysts that Eucerin was benefiting from the expertise of the U.S. sun care brand Coppertone it bought in 2019, adding retailers were already showing strong interest in the new line.
The Tesa adhesives unit, which accounts for about a fifth of sales, reported third-quarter organic sales growth of 4.6%, helped by growth in the Chinese electronics business.
Beiersdorf increased its 2021 outlook for Tesa’s organic sales growth to 11-13% from a previous “high single digit range” and said it expected the automotive business – that has been hit by shortages of computer chips – to recover in 2022.