Results of Operations – Group

Sales

Group sales increased organically by 10.2% year on year. The Consumer Business Segment recorded an encouraging, double-digit rise in organic sales of 10.5%. The tesa Business Segment achieved organic sales growth of 8.8%. Exchange rates increased nominal growth by 4.3 percentage points. The structural effects of the acquisition of Chantecaille and the sale of tesa Labtec had a positive impact of 0.9 percentage points on sales. Nominal sales for the Group increased by 15.4% year-on-year to €8,799 million (previous year: €7,627 million).

In Europe, organic sales were up 5.5% on the previous year. Nominal sales stood at €3,900 million (previous year: €3,676 million), putting them 6.1% higher than the previous year.

Organic year-on-year growth in the Americas hit 21.8%. In nominal terms, sales rose by 39.2% to €2,126 million (previous year: €1,527 million).

Organic sales in the Africa/Asia/Australia region were 9.9% above the previous year’s level. Nominal sales climbed by 14.4% to €2,773 million (previous year: €2,424 million).

Group Sales

(in € million)

Group Sales by Regions

(in %)

Expenses/Other operating result

The cost of goods sold climbed by 17.6%. As a result of the increased sales volume, costs rose again compared to the previous year. In addition, exchange rates had a negative impact. These were partially offset by price and mix effects. Overall, as a result of increased cost pressure on the procurement markets, gross profit as a percentage of sales decreased in the reporting year.

With an increase of 12.1% compared to the previous year, marketing and selling expenses developed at a lower rate than sales due to the efficient use of resources and amounted to €2,998 million (previous year: €2,675 million). This was achieved through optimization of marketing expenditures and focused advertising campaigns. The marketing budget is constantly adjusted to the changing market conditions and especially to the change in consumers’ media use. A total of €1,883 million (previous year: €1,689 million) was spent on advertising and trade marketing.

Research and development expenses also developed at a lower rate than sales. They amounted to €291 million, €23 million higher than in the previous year (€268 million). One focus in this respect was on forward-looking technologies, new digitization options and sustainable concepts. Continuous research, taking into account regional specifics, enables the company to respond to consumer wishes.

General and administrative expenses rose from €448 million to €524 million and were mainly driven by the continuation of numerous digitalization projects. The other operating result (excluding special factors) totaled €14 million (previous year: €24 million). This was mainly due to foreign exchange losses and higher restructuring expenses.

Operating result (EBIT, excluding special factors)

Group EBIT

excluding special factors (in € million)

The Beiersdorf Group’s results of operations are determined on the basis of the operating result (EBIT) excluding special factors. This figure is not part of IFRS Standards and should be treated merely as voluntary additional information. The special factors listed are one-time, non-operating transactions.

EBIT excluding special factors amounted to €1,158 million (previous year: €993 million), while the EBIT margin was 13.2% (previous year: 13.0%). The Consumer Business Segment generated EBIT excluding special factors of €880 million (previous year: €740 million). The EBIT margin was 12.3% (previous year: 12.1%). The tesa Business Segment achieved EBIT excluding special factors of €278 million (previous year: €253 million) and an EBIT margin of 16.7% (previous year: 16.9%).

The Group operating result before special factors in Europe was €618 million (previous year: €556 million). The EBIT margin was 15.9% (previous year: 15.1%). The operating result before special factors in the Americas amounted to €140 million (previous year: €91 million). The EBIT margin here was 6.6% (previous year: 6.0%). In Africa/Asia/Australia, EBIT excluding special factors amounted to €400 million (previous year: €346 million) with an EBIT margin of 14.5% (previous year: 14.3%).

Special factors

The Group special factors totaled €66 million (previous year: €60 million). The special factors recognized in the reporting year mainly comprised restructuring expenses, primarily in the supply chain organization of €43 million (previous year: €37 million), expenditure from the “Care Beyond Skin” program of €5 million (previous year: €6 million), and other expenditure of €18 million, which was incurred as a result of the integration of the Chantecaille business in the amount of €4 million, as well as expenses of €6 million in connection with the sale of tesa Labtec and the impairment of goodwill for tesa Twinlock in the amount of €8 million.

Operating result (EBIT)

The operating result (EBIT) amounted to €1,092 million (previous year: €933 million). This corresponds to an EBIT margin of 12.4% (previous year: 12.2%).

Financial result

The financial result amounted to €4 million (previous year: €–26 million). The previous year’s figure was attributable to losses from financial investments.

Income taxes

Income taxes totaled €325 million (previous year: €252 million). The tax rate was 29.6% (previous year: 27.8%). Taxes for the special factors amounted to €14 million (previous year: €16 million).

Profit after tax

Group Profit after Tax

excluding special factors (in € million)

Profit after tax was €771 million (previous year: €655 million). The return on sales after tax was 8.8% (previous year: 8.6%). Excluding special factors, profit after tax increased to €823 million (previous year: €699 million). The corresponding return on sales after tax was 9.4% (previous year: 9.2%).

Earnings per share – Dividends

Earnings per share stood at €3.33 (previous year: €2.81). Excluding special factors, earnings per share amounted to €3.56 (previous year: €3.00). These figures were calculated on the basis of the weighted number of shares bearing dividend rights (226,818,984). 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). For further information on the number, type, and notional value of the shares, please refer to Note 19 “Share Capital” in the notes to the consolidated financial statements.