Today, the Executive Board of Beiersdorf Aktiengesellschaft, Hamburg, approved a new strategy program “C.A.R.E.+” and, as part of this program, decided to invest additional funds of €70 million to €80 million annually in the Consumer Business Segment beginning in 2019. By taking this step, the Board has acted to continue to generate long-term, profitable growth that exceeds the market trend and to address disruptive changes in the consumer goods market. “C.A.R.E.+” will further strengthen the long-term competitiveness of Beiersdorf primarily by setting five strategic priorities: Accelerated opening of new markets and business areas, strengthening skin care categories of the portfolio, stepping up digitalization, improving productivity, and social & environmental commitment.
During its meeting today, the Company’s Supervisory Board approved the investments arising from this strategy and the annual planning for 2019.
Based on this strategy program, Beiersdorf expects above-market sales growth for the Consumer Business Segment of 4-6% with an improved EBIT margin of 16-17% by 2023.
For financial year 2019, the Company expects that the Consumer Business Segment will outperform the market and generate sales growth of 3-5% (2018: 5.0%) despite difficult economic conditions; as a result of the company’s investments, the EBIT margin is expected to decline to 14-14.5% (2018: 15.3%). For the Group, Beiersdorf expects sales to rise by 3-5% (2018: 5.4%) and an EBIT margin of around 14.5% (2018: 15.4%) in 2019. The tesa Business Segment is expected to generate sales growth of 3-4% (2018: 6.8%) and an EBIT margin slightly below the prior-year level (2018: 15.7%).