Beiersdorf AG

Business Activities

Beiersdorf AG is based in Hamburg (Germany) and is the parent company of the Beiersdorf Group. As of December 31, 2022, Beiersdorf AG employed 2,415 people (previous year: 2,412). The number of vocational trainees and trainees not included in this figure was 115 (previous year: 121).

Beiersdorf AG is responsible for the German Consumer business and provides typical holding company services to its affiliates. In addition to its own operating activities, Beiersdorf AG manages an extensive investment portfolio and is the direct or indirect parent company of over 200 subsidiaries worldwide. The company also performs central planning/financial control, supply chain, treasury, and human resources functions, as well as a large proportion of research and development activities for the Consumer business.

Beiersdorf AG’s operating business is one part of the Beiersdorf Group’s business activities. The entire company is managed on the basis of the key performance indicators outlined in the “Management and Control” section of the Combined Management Report. It is only possible to gain a full insight into the key performance indicators at the level of the Group.

The net assets, financial position, and results of operations of Beiersdorf AG are dominated by its own business activities and by the activities of its affiliates in the form of royalty income and dividend income. Consequently, the economic position of Beiersdorf AG essentially corresponds to that of the Group as a whole. Similarly, the opportunities and risks as well as the outlook for Beiersdorf AG correlate closely with those for the Group, particularly regarding the war in Ukraine and the global COVID-19 pandemic, which have brought economic disruption, volatility, and shortages in important procurement, transport, and sales market for us.

Basis of Preparation

The annual financial statements of Beiersdorf AG are prepared in accordance with the provisions of the Handelsgesetzbuch (German Commercial Code, HGB) and the Aktiengesetz (German Stock Corporation Act, AktG). The recommendations of the German Corporate Governance Code that are relevant to the annual financial statements were taken into account.

Result of Operations – Beiersdorf AG

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Income Statement – Beiersdorf AG in accordance with HGB(in € million)
	2021	2022
Sales	1,336	1,429
Other operating income	35	47
Cost of materials	–286	–306
Personnel expenses	–332	–331
Depreciation and amortization of property, plant, and equipment and intangible assets	–41	–41
Other operating expenses	–727	–797
Operating result	–15	1
Net income from investments	212	352
Net interest expense	–45	–19
Other financial result	3	1
Financial result	170	334
Profit before tax	155	335
Income taxes	–32	–27
Profit after tax	123	308
Transfer to other retained earnings	—	–132
Withdrawals from other retained earnings	53	—
Net retained profits	176	176

Beiersdorf AG’s sales increased by €93 million to €1,429 million in the reporting year (previous year: €1,336 million). Product sales for Aquaphor, NIVEA SUN, and Eucerin were particularly encouraging. Sales of €1,023 million (previous year: €988 million) were generated in Germany and €406 million (previous year: €348 million) in other countries.

The operating result rose by €16 million to €1 million due to considerably higher sales and improved other operating income, accompanied by a proportionate increase in cost of materials and marketing expenses.

The financial result improved year-on-year by €164 million. This increase was due to a significant rise in net income from investments of €140 million and a €26million improvement in net interest expense. Meanwhile, other financial result deteriorated by €2 million.

Accordingly, profit before tax was significantly higher than the previous year at €335 million, with an increase of €180 million.

Profit after tax was €308 million (previous year: €123 million), an increase of €185 million on the previous year.

Net Assets and Financial Position – Beiersdorf AG

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Balance Sheet – Beiersdorf AG in accordance with HGB(in € million)
Assets	Dec. 31, 2021	Dec. 31, 2022
Intangible assets	140	110
Property, plant, and equipment	139	193
Financial assets	6,328	5,879
Fixed assets	6,607	6,182
Inventories	4	4
Receivables and other assets	693	896
Securities	82	82
Cash and cash equivalents	1	18
Current assets	780	1,000
Prepaid expenses	6	7
Deferred tax assets	98	102
	7,491	7,291

Equity and liabilities	Dec. 31, 2021	Dec. 31, 2022
Equity	2,764	2,913
Provisions for pensions and other post-employment benefits	656	643
Other provisions	305	329
Provisions	961	972
Liabilities	3,766	3,406
	7,491	7,291

Fixed assets fell by a considerable €425 million year-on-year. This decrease was largely due to the maturity and sale of long-term government and corporate bonds. The additions to property, plant, and equipment of €66 million include €43 million in connection with the completion and commissioning of a building together with outdoor facilities and operating equipment as part of the “New Beiersdorf Campus” project. Investments in property, plant, and equipment were offset by depreciation of €12 million.

Current assets increased by €220 million over the fiscal year to €1,000 million. As in the previous year, this includes short-term securities of €82 million. The sharp increase in this position of €203 million is mainly attributable to higher financial receivables from affiliated companies.

In contrast, liabilities decreased by a considerable €360 million year on year to €3,406 million. This was mainly due to a decrease in financial liabilities to affiliated companies.

€2,913 million (previous year: €2,764 million), or 40% (previous year: 37%), of the total balance sheet assets of €7,291 million (previous year: €7,491million) is financed by equity.

The Executive Board and Supervisory Board will propose a dividend of €0.70 per no-par-value share bearing dividend rights to the Annual General Meeting (previous year: €0.70).

Annual Report 2022