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Beiersdorf anticipates that a resurgence in travel retail and demand for sun care products will enhance sales in 2022, when the Nivea producer also anticipates a return in adhesives sales to the automobile industry.
According to finance head Astrid Hermann, the German company expects to counteract growing raw material costs by raising pricing and decreasing expenditures, aiming for a minor rise in its operating margin in 2022.
Beiersdorf issued the predictions after announcing that third-quarter sales increased by an underlying 4.3 percent to 1.9 billion euros ($2.2 billion), falling short of some analysts’ expectations.
L’Oreal, the beauty specialist, reported 13.1 percent organic revenue growth in the third quarter, fueled by demand for its luxury brands and expansion in China. [nL1N2RH1TG [Beiersdorf shares, which were due to re-enter Germany’s blue-chip index, opened 1.5 percent lower.
Its consumer business increased organic sales by 4.1 percent in the third quarter, owing to good performances by Eucerin and Aquaphor creams, as well as premium brand La Prairie, which had been impacted by the global travel stop caused by the coronavirus epidemic.
As consumers returned to the beaches, the Nivea brand had a robust recovery of sun creams, shower gels, and deodorants. Beiersdorf announced plans to launch its Eucerin Sun brand in the United States in early 2022.
According to CEO Vincent Warnery, Eucerin is benefiting from the expertise of the U.S. sun care company Coppertone, which it acquired in 2019, and merchants are already indicating considerable interest in the new line.
Tesa adhesives, which accounts for roughly a fifth of sales, posted 4.6 percent organic sales growth in the third quarter, aided by development in the Chinese electronics market.
Beiersdorf raised its forecast for Tesa’s organic sales growth in 2021 to 11-13 percent from a prior “high single digit range,” and said it expects the automotive business, which has been hampered by computer chip shortages, to return in 2022.
Story by : Norvisi Mawunyegah