Financial Position

Gross cash flow amounted to €1,075 million in the period under review, down €194 million on the prior year’s value.

The change in working capital led to an outflow of €290 million (previous year’s outflow: €38 million). The decrease of €3 million in inventories and of €132 million in trade payables and current provisions was accompanied by a €161 million increase in receivables and other assets.

The net cash inflow from investing activities amounted to €128 million in the reporting year (previous year’s outflow: €126 million). Net investments of €537 million from securities, interest, and other financial income received of €53 million as well as proceeds of €9 million from the sale of intangible assets and property, plant, and equipment were offset by capital expenditure of €463 million for property, plant, and equipment, and intangible assets as well as payments for investments in associated companies and other investments of €8 million.

Free cash flow was €913 million, down by €192 million on the prior-year value (previous year: €1,105 million). The net cash outflow of €847 million from financing activities (previous year’s outflow: €1,029 million) comprised the Beiersdorf AG dividend payment of €223 million, payments for the acquisition of own shares of €501 million and other financial inflows and outflows with a net amount of €123 million.

Cash and cash equivalents amounted to €1,200 million (previous year: €1,207 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 2025, our securities portfolio held by Beiersdorf AG comprised 84.5% corporate bonds (previous year: 83.2%), 3.1% government bonds (previous year: 3.4%), 8.7% in money market funds (previous year: 8.6%), 3.7% equity fund units (previous year: 2.8%) and 0.0% 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 2026 financial year.

In 2025, Beiersdorf paid an unchanged dividend compared to the previous year (2025 and 2024: €1.00 per share). We also used part of the cash flow and available financial resources to implement a share buyback program in the amount of €500 million. It was not necessary to borrow funds to finance these expenses.

Cash flow plans with a time horizon of up to twelve 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.

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).