23. Retained Earnings
Retained earnings comprise the net profit for the financial year and undistributed profits generated in prior periods by companies included in the consolidated financial statements. In addition, this item contains the actuarial gains and losses on remeasurements of defined benefit obligations in previous years. The retained earnings are reduced by the cost of the treasury shares held by Beiersdorf Aktiengesellschaft.
Treasury shares, which amounted to 25,181,016 shares (around 9.99% of the share capital) as at December 31, 2023, developed as follows in the reporting year:
In the ad hoc announcement dated February 5, 2024, the Executive Board announced, with the approval of the Supervisory Board, that it would carry out a share buyback program in addition to a significant increase in the dividend by EUR 0.30 to EUR 1.00 per share in order to allow shareholders to participate in the positive business results of recent years; this actively created value for the company’s shareholders while sending a clear signal to the capital market.
The share buyback program was carried out on the basis of the authorization granted by the Annual General Meeting of Beiersdorf Aktiengesellschaft on April 29, 2020. Under the authorization, Beiersdorf Aktiengesellschaft is entitled to purchase treasury shares representing up to 10% of the share capital on or before April 28, 2025.
To implement the share buyback program, Beiersdorf Aktiengesellschaft cancelled treasury shares in several steps (before the start of the share buyback program with effect from April 19, 2024, 3,000,000 treasury shares, corresponding to 1.19% of the share capital at that time; with effect from July 12, 2024, 900,000 treasury shares, corresponding to around 0.36% of the share capital at that time; with effect from August 1, 2024, 100,000 treasury shares, corresponding to around 0.04% of the share capital at that time). The share buyback program ended on August 6, 2024. The purchase of the shares was carried out by a credit institution engaged by Beiersdorf Aktiengesellschaft.
The total volume of shares purchased under the share buyback program in the period from April 24, 2024 through August 6, 2024, inclusive, was 3,604,604 shares with a buyback value of €499,999,910.97 (excluding transaction costs). As at December 31, 2024, the number of treasury shares therefore amounts to 24,785,620 shares (approximately 9.99% of the share capital).
Detailed information on the individual transactions can be found on Beiersdorf Aktiengesellschaft’s website: https://www.beiersdorf.com/investor-relations/shares/share-buyback.