Business and Strategy1
Beiersdorf is one of the world’s leading consumer goods companies with a portfolio of strong, global brands, over 190 international affiliates, and more than 22,000 employees. Pioneering innovations, iconic brands and a close connection to our consumers have always been the foundation of our success.
To achieve this, it’s crucial to have the right people. Our employees, with their commitment, knowledge, and expertise, play a key role in ensuring that our brands and products are appreciated and purchased all over the world. We offer them attractive conditions and a wide range of opportunities to develop personally and actively shape Beiersdorf’s future.
Our business is subdivided into two separate, independently operating business segments. In both segments, we hold a leading position in the market:
- In the Consumer Business Segment, our focus is on skin and body care. Our portfolio comprises brands such as NIVEA, Eucerin, La Prairie, Chantecaille, and Hansaplast, which are trusted by people around the world.
- In the tesa Business Segment, we concentrate on developing innovative adhesive tapes and self-adhesive solutions for industry, trade, and end consumers. Since 2001, tesa has been managed as an independent subgroup.
As of December 31, 2024, we employed a total of 22,791 people worldwide in the two business segments, which is 3.8% more than the previous year (previous year: 21,958). Of this total, 7,003 (previous year: 6,778) were employed in Germany, corresponding to a share of 31% (previous year: 31%). A total of 17,386 employees worked in the Consumer Business Segment (previous year: 16,769) and 5,405 at tesa (previous year: 5,189).
Group Employees
Full-time equivalent (FTEs), as of Dec. 31, 2024
Group Employees by Region
Full-time equivalent (FTEs) in %, as of Dec. 31, 2024
Detailed information on our progress and measures relating to our employees can be found in the “Non-financial Statement.”
Consumer
Consumer
Our strategy
For over 140 years, the Beiersdorf name has stood for innovative skin care and pioneering skin research. Our ambition is to make people feel good in their skin – but for us, this goes far beyond skin care. Our Care Beyond Skin purpose expresses how we see ourselves: We want to win people over not only with unique skin care, but also by making a positive contribution to society.
At the end of 2023, we formulated our clear vision for the coming years: We want to be the best skin care company in the world. To achieve this, we further developed our strategy in the reporting year. With “Win with Care” we are building on the strong economic successes of recent years, while simultaneously raising the bar for our performance and growth. We are focusing on the development of our brands, the introduction of ground-breaking innovations and the development of additional growth areas (white spaces). We are also pressing ahead with our commitment to climate action and creating added value for society. We have summarized these ideas in three strategic choices in our “Win with Care” strategy:
- We want to be the undisputed authority in skin care.
- We want to be omnipresent for our consumers.
- We want to combine performance with purpose.
To achieve our strategic priorities, we are focusing on two foundational success factors. Firstly, we want to win together as a team and shape the future of skin care with our high-performing, diverse employees. We are doing everything we can to be the employer of choice for talented people who share our values and reflect the diversity of our consumers. And secondly, we are leveraging the potential of digitalization. By using the opportunity to create new skin care experiences and optimize our end-to-end processes, we are making Beiersdorf fit for the future.
We want to be the undisputed authority in skin care
With our first strategic choice – our ambition to be the undisputed authority in skin care – we are putting our strong brands and our innovative power center stage. We want to offer our consumers pioneering skin care solutions and are focusing on developing innovative products that make a real difference to their lives. This includes further strengthening our brands and positioning them more specifically in their respective segments and with the relevant target groups.
Innovations are essential. They are part of our DNA and a fundamental key to our success. Since our foundation in 1882, we have repeatedly set new standards in skin care with our innovations, and we are continuing on this path with our “Win with Care” strategy. In the coming years, we will therefore be focusing on strong growth in three important future areas of the skin care market: hyperpigmentation, aging skin, and acne.
In the area of hyperpigmentation, we have created a huge growth driver for our company in the form of Thiamidol®, an active ingredient developed and patented by us. And we will expand the use of this effective anti-pigmentation ingredient across our entire brand portfolio on a global scale. In China, one of our most important strategic growth markets, we reached a significant milestone in November 2024 when we received official regulatory approval for the active ingredient Thiamidol 630® – the first step on the way to full approval of end products containing Thiamidol® in China. We expect the first products to be available in China by early 2026.
We are opening up another major growth area with our expertise in epigenetics, a field whose potential Beiersdorf recognized at an early stage. The development of our patented, skin-specific age clock technology and our active ingredient Epicelline® are the results of over 15 years of epigenetic research. In September 2024, we successfully launched our first epigenetic skin care product, Eucerin Hyaluron-Filler Epigenetic Serum, with which we are once again underlining our pioneering role in the field of skin rejuvenation. We will continue to build on this with our “Win with Care” strategy.
In the area of microbiome research, we significantly strengthened our innovative power with the acquisition of S-Biomedic in late 2022. We are convinced that we will be able to offer our consumers innovative skin care solutions for skin indications such as acne in the coming years.
We want to be omnipresent for our consumers
The second strategic choice under our “Win with Care” strategy is aimed at further expanding the presence of our products in all strategic markets, categories, and segments and addressing our consumers wherever they are – from traditional retail to the latest digital platforms. To achieve this, we are focusing on various areas, such as systematically developing growth areas (white spaces) in skin care and expanding new sales opportunities, particularly in the area of e-commerce.
Beiersdorf has achieved great success in expanding into new regions and markets. But there are still a lot of white spaces where our brands have little or no presence. We want to exploit this potential as part of our “Win with Care” strategy and make focused progress in introducing relevant brands. The face care segment is a high priority here.
Sales channels are another area where we see potential for increasing our presence for our consumers. As e-commerce is our fastest-growing sales channel, we will continue to systematically expand our activities in this area. We are also constantly reviewing and evaluating new channels for their attractiveness in the rapidly changing retail environment. The same applies to potential acquisitions and promising investment opportunities.
We want to combine performance with purpose
Our third strategic choice under the “Win with Care” strategy focuses on profitable growth and increasing the value of our business. By doing so, we want to secure the future viability of our company and further expand our market position in all segments – from mass market to premium business, including the dermatology and health care segments. Cost discipline and efficiency are of crucial importance here. At the same time, we will focus on implementing fewer but bigger and better initiatives in the future, specifically targeting those where we see the greatest potential for our company.
Profitability alone is not enough for us. We are advancing the sustainable transformation of our company and making a contribution to the environment and society. Our goals regarding the reduction of GHG emissions have been validated by the Science-Based Targets initiative (SBTi) to be in line with the Paris Agreement. We have already made progress in terms of sustainability by further developing our product packaging, formulas, and formulations, and have set ourselves ambitious targets in order to continue on this path. You can find more information on this topic in the “Non-financial Statement.”
As part of our “Win with Care” strategy, it is also important to us that our brands and activities make a tangible contribution to promoting a more inclusive society. Our products not only help solve skin indications, but also improve daily well-being, self-confidence and ultimately quality of life. In this context, one of the things we do is actively combat the stigmatization of people with chronic skin conditions. Our NIVEA brand is also committed to society with “NIVEA CONNECT,” a global mission to combat social isolation, which is a key trigger for mental and physical health problems. According to a NIVEA study, 86% of participants feel that isolation is an increasing challenge. Young people between the ages of 16 and 24 (34%), and heavy social media users (27%) are particularly affected. By 2026, we will be supporting projects in 40 countries to raise awareness of social isolation, help reduce the stigma surrounding it, and provide information so that people can connect more meaningfully with each other. We also offer our employees support and stability – especially in difficult times: With the introduction of our global “Critical Illness Policy,” we are there for them if they fall life-threateningly ill. The policy allows affected employees to focus entirely on their recovery without having to worry about their job or financial security.
tesa
tesa
tesa SE (hereinafter “tesa”) is one of the world’s leading manufacturers of innovative adhesive tapes and self-adhesive product solutions for industry, commercial customers, and end consumers. A wholly owned affiliate of Beiersdorf Aktiengesellschaft, tesa SE is an independently managed subgroup that operates as the direct or indirect parent company of 57 tesa affiliates (previous year: 60) with 5,405 employees (previous year: 5,189). As of December 31, 2024, tesa therefore employed 4.2% more people than in the previous year. There were 2,685 employees in Germany (previous year: 2,579), which corresponds to a share of 49.7% (previous year: 49.7%).
Regions and significant locations
tesa operates worldwide, with its main focus on Europe, followed by the business regions of Africa/Asia/Australia and the Americas. The company headquarters with integrated technology and product development and a pilot center are located in Norderstedt near Hamburg, Germany. In addition to the German locations, the affiliates in China and the USA are among tesa’s largest and most strategically important single companies. The most relevant production locations are in Europe (Germany and Italy), North America (USA) and Asia (China and Vietnam).
Industry
In its Industry division, tesa supplies specialized product and system solutions directly to industrial customers in the automotive, consumer electronics, printing and packaging, and electrical systems sectors. The strategic focus is primarily on developing and expanding profitable business fields in technologically advanced fields of application. tesa’s product and system solutions are used to optimize and enhance the efficiency of production processes, as fastening solutions in construction-related applications – often with additional functions beyond the mere bonding of components – and as customized protection and packaging systems.
In addition to direct business, the Industry division also includes industrial trade. tesa offers a diverse range of products for a broad spectrum of applications in various industrial sectors through trading partners. These include assortments for assembly and repair, transport safety tapes, and adhesive solutions for the packaging industry.
Consumer
The Consumer division covers the markets in which tesa supplies end consumers with market-driven products via retail partners or retail-like channels. These include product ranges for private end consumers and craftspeople. In addition, tesa uses its e-commerce business to offer products for sale directly to end consumers.
The Consumer business is focused on Europe and Latin America. It sells both long-established and new product solutions intended for various applications, including for daily use in offices, at home, and in crafts. Consumers can find a wide range of innovative products under the tesa® umbrella brand in hardware and stationary stores, superstores, and online. For professional craftspeople, tesa offers customized product ranges that are offered via marketing concepts tailored to specific target groups.
Management and Control
The Executive Board manages the company and is committed to sustainably increasing the company’s value. In addition to the functional areas of responsibility within the Executive Board, there are regional areas of responsibility. The Executive Board is closely involved in the company’s operational business, particularly through the allocation of responsibilities for the regions and markets. A breakdown of the Executive Board’s areas of responsibility can be found in the “Beiersdorf AG Boards” section of the notes to the consolidated financial statements. The tesa Business Segment is managed as an independent subgroup.
Information on the remuneration of the Executive and Supervisory Boards, including incentive and bonus systems, is provided in the “Remuneration Report.” The Combined Management Report also contains the Corporate Governance Statement for Beiersdorf AG and the Group in accordance with §§ 289f, and 315d Handelsgesetzbuch (German Commercial Code, HGB), which is also available to the public on the company’s website at www.beiersdorf.com/investor-relations/corporate-governance/corporate-governance-statement.
Value Management and Performance Management System
The aim of Beiersdorf’s business activities is to sustainably increase the company’s market share in terms of qualitative growth while simultaneously expanding its earnings base. This is the basis for the long-term key performance indicators, namely organic sales growth2 in conjunction with market share development and EBIT or the EBIT margin before special items (ratio of EBIT to sales). The aim is to generate internationally competitive returns through continuous investment in growth opportunities, such as white spaces, systematic cost management, and the highly efficient use of resources. The development of the relevant key performance indicators can be found in the “Results of Operations” section. In the 2024 financial year, there was no change in the key financial performance indicators compared to the previous year.
The company has created an efficient management system in order to achieve its strategic goals. Corporate management derives the corporate planning targets for the individual units for the coming year from the Group’s strategic objectives. This planning covers all segments and affiliates. The Group’s planning for the following year is generally approved by the Executive Board and Supervisory Board towards the end of the year. In specific cases the planning is not finalized until the beginning of the financial year in view of current developments.
Over the course of the financial year, the current development of the key performance indicators is regularly compared with the expected values and the current forecast for the year as a whole. These comparisons are used to manage the business in line with the objectives.
The tesa Business Segment forms a separate, independent unit within the Group. It is also managed by reference to the key performance indicators of organic sales growth and operating result (EBIT) or EBIT margin before special items.
1 All figures related to employees in this chapter are presented as full-time equivalents (FTEs).
2 Organic sales growth is the nominal sales growth adjusted for exchange rate effects and structural effects from acquisitions and divestments.