www.beiersdorf.com

Corporate Sales: $7.7 billion

Beauty Sales: $6.3 billion (Consumer)

Key Personnel: Stefan F. Heidenreich, chief executive officer; Dr. Ulrich Schmidt, executive board member; Jesper Andersen, executive board member; Ralph Gusko, executive board member; Thomas Ingelfinger, executive board member; Stefan De Loecker, executive board member; Zhengrong Liu, executive board member; May Shana’a, head of research and development.

Major Products/Brands: Nivea, Eucerin, La Prairie, Labello, 8X4, Florena.

New Products: Nivea Q10 Pearls, Nivea Powder Touch, Nivea for Men Platinum Protect 3-in-1 Deodorizing Body Wash, Nivea Extra Whitening Cell Repair Deodorant Spray, Eucerin Diabetics Dry Skin Relief, Eucerin Baby, La Prairie Skin Caviar Concealer Foundation SPF 15, La Prairie Skin Caviar Luxe Eye Lift Cream.

Comments: Just as Picasso had his blue period, so does Beiersdorf, but while the contemporary artist felt depressed, the Germany-based skin care manufacturer is elated. That’s because continued success and profitability for 2014 was due largely to the company’s Blue Agenda, which was put in place to strengthen and capitalize on its key brands, particularly Nivea, with its iconic color.

For 2014, despite difficult overall market conditions, Beiersdorf sales increased by 2.3%, to $7.7 billion. The company’s three core brands added up to the Consumer business segment being a major contributor, accounting for $6.3 billion, with an organic sales growth of 4.8%. Nivea achieved 6.2% growth, Eucerin 6%, and La Prairie, 5.1%. Nivea Deo, Nivea Shower and Nivea Body all performed well, the latter especially from the expansion of the Nivea Body range. Nivea Powder Touch was also especially successful. Nivea anti-aging products are also adding to the bottom line. Nivea’s Q10 Pearls, launched at the end of 2014, is said to be a “highly effective” anti-wrinkle serum, and Beiersdorf says it’s the first product to make pearl technology accessible to mass market consumers.

Beiersdorf increased organic sales in all regions, with Europe accounting for 53.7% of Consumer sales; Africa/Asia/Australia, 27.6%; and Americas 18.7%. In Europe, Beiersdorf further increased its market position in the Consumer arena, with a sales growth of 2%. In Western Europe, sales rose by 1.6%. The performances in Germany, the UK and Spain were particularly encouraging. In Eastern Europe, sales grew by 3.6%; La Prairie saw extremely strong growth in this region.

Beiersdorf achieved sales growth of 6.2% in the Americas region. Business in Latin America performed well once again with sales growth of 7.1%, led by Brazil. In North America, sales increased by 4.6%.

The Africa/Asia/Australia region saw a strong increase in sales, with growth of 9.6%. Many markets in the region generated good or extremely good growth rates, although economic growth has eased in some markets, particularly in China.

News of Note

In July 2015, the Federal Supreme Court of Germany reversed a 2013 decision made by the Federal Patent Court about the deletion of the registered color trademark “Nivea Blue.” At the instigation of a competitor, the Federal Patent Court had ordered the removal of the color trademark from the German trademark register. The case will now begin at the Federal Patent Court again. Beiersdorf said it welcomed this decision by the Federal Supreme Court, which regards the color as a trademark and not only as a decorative background with high recognition value. The iconic blue color has played a key role in defining the brand since 1925.

Looking Ahead

In August, Beiersdorf announced that its consistent growth path had continued in the first half of 2015, proclaiming its “best-ever result for the first six months of a year.” The company increased both its sales and earnings, and gained market share—at mid-year, exceeding the previous year’s results.

The Consumer Business Segment recorded strong growth in the second quarter, after flat business in the first. Sales rose by 7.2%.

Sales in Europe reached last year’s high, despite some challenging market conditions. While Eastern Europe delivered sales growth of 6.4%, sales in Western Europe were down 1.4% on the previous year. Strong growth rates were achieved in Russia in particular.

Beiersdorf recorded a significant increase in sales in the Americas region, at 8.3%. Sales rose by 4.5% in North America and by 10.7% in Latin America. Brazil was the main growth driver, again generating double-digit growth. In FY 2015, Beiersdorf anticipates above-market sales growth of 3-5% for the Consumer Business Segment.