The new head of beiersdorf, stefan de loecker, gets down to work: he has ordered the hamburger consumer goods company (nivea, eucerin) to spend more in order to be able to grow more profitably in the future with its skin and body care products.
For this, however, the nivea manufacturer must initially forego returns, 2019 was allowed to be a transitional year, the company announced in hamburg on wednesday. He sees himself well equipped for the growth he is aiming for.
With net liquidity of 4.4 billion euros and a robust balance sheet, the company can easily realize its future investment and growth plans, de loecker reported. "The consumer goods industry is in the midst of a historic upheaval," he added. "Our entire business model must adapt to the new economic and technological conditions."
"We need to become a faster, more efficient and simpler company," announced de loecker. He wants to tap growth markets, especially in asia (bangladesh, myanmar), focus beiersdorf on skin care, and accelerate the exploitation of the opportunities offered by digitalization. After india, a research center is also to be built in china. Without it, success is not feasible there, said de loecker. Beiersdorf sells skin and hair care products in china, but the latter is coming under scrutiny.
But the european sales market, which accounts for around half of group sales, is also to be strengthened. "The european mass market business is under pressure," de loecker explained. Because of the up-and-coming natural cosmetics industry, beiersdorf will actively look for suppliers in this area. Start-up companies for skin care are to be lured with a venture capital fund worth 50 million euros. "I deliver what i promise," stated the new ceo.
This year, beiersdorf is aiming for growth of three to five percent. Above all, investments of 70 to 80 million euros per year – in digitization and employee training, among other things – are intended to achieve more growth in the consumer business. It is expected to be 4 to 6 percent in four years’ time. At the mainstay with other brands such as labello, eucerin and 8×4, sales rose by 1.6 percent in 2018 to 5.89 billion euros. In addition, the company says it spends between 250 and 350 million euros a year on expanding its product range and capacity, and on technological developments.
The plan initially allowed the group’s return on investment to fall in 2019 – from 15.4 percent (2018) to 14.5 percent, the chief executive said. This did not go down well on the stock market. The dax company’s share price initially fell sharply before recovering again. A dividend of 70 cents per share, unchanged from the previous year, will be proposed to the annual stockholders’ meeting.
Group sales increased by 2.5 percent in 2018 to 7.23 billion euros. Adjusted for the impact of the strong euro and the effects of acquisitions and disposals, growth was 5.4 percent. Group profit after taxes increased by 9.6 percent to 756 million euros.
Sales of the adhesives business tesa also grew in 2018, by 6.8 percent to 1.3 billion euros. Operating profit (EBIT) increased by 1.3 percent to 210 million euros.
RELATED POSTS
Rough jumps with high school graduation How do you imagine the perfect high school student?? Determined, hard-working, well-balanced, with a wide range of interests and socially committed. But… |
Ebay profits from smartphone purchases U.S. Online retail growth slowed dramatically after the second quarter, chief financial officer bob swan warned in a conference call with analysts. The… |
Boom in the parcel industry fails to materialize Parcel volumes at pre-christmas level and delivery staff as heroes of the pandemic: at the height of the corona crisis, the parcel industry was quick to… |
Otherwise the end of fubball is imminent! Above all, the impartial referees in the erlangen/pegnitzgrund fubball playing district were affected: if referees can only be led off the pitch under… |