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1. Company Snapshot

1.a. Company Description

Beiersdorf Aktiengesellschaft engages in the manufacture and distribution of consumer goods in Europe, the Americas, Africa, Asia, and Australia.It operates in two segments, Consumer Business and Tesa Business.The Consumer Business Segment offers skin and body care products.


The Tesa Business segment provides adhesive tapes and self-adhesive products and system solutions for industries, craft businesses, and consumers.This segment offers its system solutions to the automotive, electronics, printing and paper, and building and construction industries.It offers its products under the NIVEA, Eucerin, La Prairie, Labello, Hansaplast, 8x4, FLORENA, Coppertone, HIDROFUGAL, GAMMON, SKIN STORIES, FLORENA FERMENTED SKINCARE, STOP THE WATER WHILE USING ME, CHAUL, TESA, O.W.N., Chantecaille, Elastoplast, CURITAS, and Beiersdorf brands.


The company was founded in 1882 and is headquartered in Hamburg, Germany.Beiersdorf Aktiengesellschaft is a subsidiary of maxingvest ag.

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1.b. Last Insights on BEI

Recent challenges for Beiersdorf Aktiengesellschaft include persisting difficulties in the Chinese luxury market, particularly affecting La Prairie. The company's Q3 2024 earnings call highlighted strong consumer sales, but also noted hurdles in the Chinese luxury market. CEO Vincent Warnery stated that the luxury market, especially in China, continues to be challenging due to a slowdown in Chinese consumer demand amid a weak economy. This has weighed on quarterly sales at other industry peers, such as L'Oreal and LVMH.

1.c. Company Highlights

2. Beiersdorf's Q3 Earnings: A Gradual Recovery

Beiersdorf AG's Q3 financial performance showed signs of gradual improvement, with the Consumer Business recording organic sales growth of 2.1%. The company's net sales for the first 9 months reached EUR 7.5 billion, with an organic sales growth of 2.0%. The EPS for the period came in at EUR 2.55, slightly below estimates of EUR 2.72. The EBIT margin guidance remains unchanged, with an expected improvement of 20 basis points. The company's valuation metrics indicate a P/E Ratio of 34.96 and a P/S Ratio of 2.89, suggesting a premium valuation.

Publication Date: Oct -24

📋 Highlights
  • Consumer Business Organic Growth:: 2.1% driven by Derma's 12.4% surge and La Prairie's 1.6% recovery.
  • NIVEA Core Portfolio Rebalancing:: Shift to skin care beyond face care amid 0.4% organic sales decline in emerging markets.
  • Full-Year Guidance Adjustment:: Consumer segment targets 2.5% growth, with Derma expected to deliver double-digit expansion.
  • La Prairie Tariff Impact:: 39% U.S. import tariff on products, but no immediate price hikes planned due to stable gross margins.
  • China Market Dynamics:: Eucerin grew 83% in Northeast Asia, while NIVEA's face care saw 36% e-commerce growth in Q3.

Segment Performance

The Derma business drove growth with a 12.4% increase, while La Prairie returned to growth with a 1.6% rise. NIVEA faced pressure, particularly in emerging markets, resulting in a 0.4% organic sales decline. The company has initiated strategic rebalancing of the NIVEA core portfolio, broadening efforts beyond face care to other skin care categories. As the CEO mentioned, "Epicelline is doing extremely well, with sell-out results exceeding expectations."

Guidance and Outlook

Beiersdorf adjusted its full-year guidance to around 2.5% organic sales growth for Consumer, driven by NIVEA's innovation pipeline, including Epicelline and Derma Control. The company expects a sequential slowdown in Q4, following the strong momentum in September. For 2026, Beiersdorf expects a balanced launch plan, with 50-50 H1 and H2 innovation, and a wider plan covering various categories.

Regional Performance

In China, Eucerin grew 83% in Northeast Asia, and La Prairie showed good dynamics, with 10% sellout growth and 30% e-commerce growth. NIVEA's face care business grew step by step, with sellout up 18% in Q2 and 36% in Q3. Emerging markets faced challenges, with a slowdown attributed to factors such as Latin America's economic uncertainties and the trend of "skinimalism."

Valuation and Estimates

Analysts estimate next year's revenue growth at 3.3%. Beiersdorf's valuation metrics, including a P/E Ratio of 34.96 and an EV/EBITDA of 17.2, indicate a premium valuation. The company's dividend yield stands at 1.05%, with a free cash flow yield of 1.62%. The ROIC and ROE are at 7.06% and 7.15%, respectively, indicating a relatively stable return profile.

3. NewsRoom

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

Oct -25

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Nivea Owner Beiersdorf on Track to Meet Guidance After Rise in Sales

Oct -24

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Beiersdorf posts 9-month sales growth, flags China weakness

Oct -24

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Beiersdorf optimistic on future despite China challenges

Oct -24

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Beiersdorf Aktiengesellschaft's (ETR:BEI) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?

Oct -13

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Calculating The Intrinsic Value Of Beiersdorf Aktiengesellschaft (ETR:BEI)

Sep -25

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Beiersdorf shares drop after Q2 misses estimates

Aug -07

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Beiersdorf Sales, Net Profit Rise, Helped by Nivea Product Line

Aug -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Consumer

Expected Growth: 5.5%

The Consumer segment is expected to grow at a rate slightly above the global hypothesis due to its diversified brand portfolio, strong presence in emerging markets, and the potential for continued innovation in personal care products, driving higher demand and market share.

Tesa

Expected Growth: 4.5%

Tesa is expected to grow at a rate slightly below the global hypothesis. Although it benefits from being a leader in adhesive solutions, its growth is somewhat constrained by its dependence on industrial sectors that can be cyclical. However, its diversification across various industries and its focus on innovation help maintain a relatively stable growth trajectory.

7. Detailed Products

Nivea

A range of skin care products including moisturizers, lotions, and creams for various skin types

Eucerin

Dermatological skincare products for sensitive skin, including creams, lotions, and ointments

La Prairie

Luxury skincare products including moisturizers, serums, and eye creams

Labello

Lip care products including lip balms, lip scrubs, and lip care sticks

Aqua liberata

Deodorants and antiperspirants for men and women

8x4

Men's grooming products including shaving cream, aftershave, and deodorant

Hansaplast

Adhesive bandages and wound care products

Florena

Skin care products for sensitive skin, including creams and lotions

8. Beiersdorf Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

Beiersdorf's products, such as Nivea and Eucerin, have some substitutes in the market, but the company's strong brand recognition and customer loyalty mitigate the threat.

Bargaining Power Of Customers

Beiersdorf's customers have some bargaining power due to the availability of substitutes, but the company's strong brand portfolio and wide distribution network reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Beiersdorf's suppliers have some bargaining power due to the company's dependence on raw materials, but the company's large scale of operations and long-term contracts with suppliers mitigate the threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the personal care industry, including high research and development costs and the need for significant marketing and advertising investments.

Intensity Of Rivalry

The personal care industry is highly competitive, with many established players competing for market share. Beiersdorf faces intense competition from companies such as Unilever, L'Oréal, and Procter & Gamble.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.21%
Debt Cost 5.19%
Equity Weight 98.79%
Equity Cost 5.19%
WACC 5.19%
Leverage 1.23%

11. Quality Control: Beiersdorf Aktiengesellschaft passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Reckitt Benckiser

A-Score: 6.0/10

Value: 1.3

Growth: 5.4

Quality: 5.2

Yield: 6.2

Momentum: 9.0

Volatility: 9.0

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Henkel

A-Score: 5.6/10

Value: 6.0

Growth: 4.1

Quality: 6.9

Yield: 5.0

Momentum: 1.5

Volatility: 10.0

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Essity

A-Score: 5.5/10

Value: 5.1

Growth: 5.4

Quality: 5.7

Yield: 6.2

Momentum: 0.5

Volatility: 10.0

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L'Oréal

A-Score: 5.0/10

Value: 2.0

Growth: 5.9

Quality: 7.8

Yield: 3.1

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Unilever

A-Score: 4.9/10

Value: 2.0

Growth: 4.4

Quality: 5.0

Yield: 6.2

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

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Beiersdorf

A-Score: 4.1/10

Value: 2.1

Growth: 5.4

Quality: 6.4

Yield: 1.2

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.78$

Current Price

90.78$

Potential

-0.00%

Expected Cash-Flows