29. Liabilities

The following table gives a breakdown of current liabilities:

Other financial liabilities primarily comprise short-term bank loans amounting to €30 million (previous year: €20 million) and lease liabilities of €84 million (previous year: €82 million). The prior-year liabilities to TROMA Alters- und Hinterbliebenenstiftung of €163 million from investment activities involving TROMA plan assets were fully repaid during the financial year. At €131 million (previous year: €156 million), other current liabilities are largely unchanged in amount and composition. As the current liabilities have remaining contractual maturities of less than 12 months as of the reporting date, their carrying amounts at the balance sheet date correspond approximately to their fair value.

As part of its strategic supplier management, Beiersdorf offers selected suppliers in 11 countries the opportunity to participate in a supply chain financing program with Deutsche Bank. Once participating suppliers invoice Beiersdorf, Beiersdorf posts the invoices on a Deutsche Bank platform so that the participating suppliers have the opportunity to sell these invoices to the bank and thus generate a faster cash inflow. The extent to which this option to sell the receivables is used is completely at the suppliers’ discretion. Beiersdorf is not informed and does not incur any costs as a result. Payment of these liabilities when due is made via the bank’s platform, irrespective of whether the supplier has sold its receivable or not. Beiersdorf considers these liabilities as part of its working capital management and continues to classify this liability as a trade payable. Liabilities to participating suppliers totaled €194 million (previous year: €127 million) at the reporting date, of which suppliers have already received €127 million as of the reporting date. The payment terms for liabilities within the supply chain financing program ranged from 30 to 180 days with a median of 120 days. The payment terms for liabilities to suppliers who did not participate in the supply chain financing program ranged from one to 180 days with a median of 60 days. 

In addition, Beiersdorf offers selected suppliers in Brazil the opportunity to receive payments in advance from the Itaú Unibanco S.A. Bank. The agreement is made directly between the supplier and the bank. On the due date, the invoice amounts that were paid in advance via the program are paid directly to the supplier. The amounts advanced via the program are paid on the original due date directly to the bank. Beiersdorf continues to consider these liabilities as part of its working capital management and continues to classify this liability as a trade payable. As of the reporting date, liabilities to participating suppliers totaled €70 million (previous year: €55 million), of which suppliers have already received €23 million as of the reporting date. The payment terms for trade payables range between 90 and 120 days, irrespective of whether the suppliers participate in the program or not.

Non-current liabilities are comprised as follows:

Non-current financial liabilities primarily comprise non-current lease liabilities.