Financial Position

Gross cash flow amounted to €1,269 million in the period under review, up €212 million on the prior year’s value.

The change in working capital led to an outflow of €38 million (previous year’s outflow: €116 million). The increase of €98 million in inventories and of €219 million in receivables and other assets was accompanied by a €279 million increase in trade payables and current provisions.

The net cash outflow from investing activities amounted to €126 million in the reporting year (previous year’s outflow: €341 million). Net investments of €307 million in the sale of securities, interest and other financial income received of €103 million as well as proceeds of €22 million from the sale of intangible assets and property, plant, and equipment were offset by capital expenditure of €437 million for property, plant, and equipment, and intangible assets, payments for acquisitions and other investments of €115 million as well as payments for investments in associated companies and other investments of €6 million.

Free cash flow was €1,105 million, up by €505 million on the prior-year value (previous year: €600 million). The net cash outflow of €1,029 million from financing activities (previous year’s outflow: €492 million) comprised the Beiersdorf AG dividend payment of €227 million, and other financial inflows and outflows with a net amount of €802 million.

Cash and cash equivalents amounted to €1,207 million (previous year: €1,133 million).

Financing and Liquidity Provision

Hedging currency, interest rate, and default risks as well as investing liquid assets are at the heart of financial management at Beiersdorf. Providing liquidity for the Group is also a paramount objective. The type and volume of transactions are in line with the basic operating and financial business.

Cash and cash equivalents are generally held as readily available bank balances at banks with good to very good credit ratings within defined counterparty limits. Balances are mainly held in the local currency of the respective subsidiary.

We pursue a low-risk and flexible investment policy. The main objective of our securities investments remains the ability to provide liquid funds at short notice for operating investments and acquisitions. As at the end of 2024, our securities portfolio held by Beiersdorf AG comprised 83.2% corporate bonds (previous year: 89.4%), 3.4% government bonds (previous year: 1.4%), 8.6% in money market funds (previous year: 4.0%), 2.8% equity fund units (previous year: 3.3%) and 2.0% mortgage bonds (previous year: 2.0%). All interest-bearing securities are investment grade; equities are only a small addition to this low-risk, highly liquid portfolio. No significant changes to the investment policy are planned for the 2025 financial year.

In 2024, Beiersdorf paid a significantly higher dividend than in the previous year (2024: EUR 1.00 per share; previous year: EUR 0.70 per share). We also used part of the cash flow and available financial resources to implement a share buyback program in the amount of EUR 501 million. It was not necessary to borrow funds to finance these expenses.

Cash flow plans with a time horizon of up to 12 months are used to determine liquidity requirements.

For the time being, Beiersdorf will refrain from having its creditworthiness assessed by external rating agencies. As we only take out external loans to a very limited extent, we do not consider such a rating to be necessary. If, in our view, it becomes necessary to obtain such a rating in the future, we will arrange this. This would correspond to a higher rating in the demanding investment grade segment.

Details on risk management in the financial area can be found in the notes to the consolidated financial statements (“notes to the balance sheet,” note 30).