Beiersdorf AG

Business activities

Beiersdorf AG is based in Hamburg (Germany) and is the parent company of the Beiersdorf Group. As of December 31, 2023, Beiersdorf AG employed 2,439 people (previous year: 2,415). The number of vocational trainees and trainees not included in this figure was 114 (previous year: 115).

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, the company manages an extensive investment portfolio and is the direct or indirect parent company of over 200 subsidiaries worldwide. Beiersdorf AG 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. In addition, the company is responsible for the regional management of European sales and the procurement of products as well as global royalty management.

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 expected business development for Beiersdorf AG correlate closely with those for the Group, particularly regarding the growing global political and economic uncertainties and their potential impact on our key procurement, transport, and sales markets.

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

Beiersdorf AG’s sales increased by €298 million to €1,727 million in the reporting year (previous year: €1,429 million). This includes product sales of the Consumer Germany division as well as royalty income and income from the provision of services to affiliates. €997 million (previous year: €1,023 million) of sales were generated in Germany and €730 million (previous year: €406 million) in other countries.

The operating result rose by €62 million to €63 million due to considerably higher sales accompanied by a sharp increase in other operating expenses as a result of one-off compensation payments due to settlement payment agreements.

The financial result deteriorated by €95 million compared to the previous year. This decline resulted from a lower net income from investments of €49 million, a €40 million drop in net interest expense, and a €6 million decrease in other financial result.

Accordingly, profit before tax was down by €33 million at €302 million compared to previous year.

Profit after tax amounted to €265 million (previous year: €308 million).

Net assets and financial position – Beiersdorf AG

Fixed assets fell by a considerable €299 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 €205 million include €184 million in connection with the completion and commissioning of the new Beiersdorf Campus. Investments in property, plant, and equipment were offset by depreciation of €17 million.

Current assets increased by €678 million over the fiscal year to €1,678 million. This includes short-term securities of €561 million (previous year: €82 million). The increase in this item is mainly due to an increase in new investments of cash and cash equivalents in short-term government and corporate bonds. In addition, financial receivables from affiliated companies increased by €157 million under receivables and other assets.

In contrast, liabilities decreased by a considerable €312 million year on year to €3,718 million. This was mainly due to an increase of €416 million in financial liabilities to affiliated companies.

€3,019 million (previous year: €2,913 million), or 39.2% (previous year: 40.0%), of the total balance sheet assets of €7,700 million (previous year: €7,291 million) is financed by equity.

The Executive Board and Supervisory Board will propose a dividend of €1.00 per no-par-value share bearing dividend rights to the Annual General Meeting (previous year: €0.70).