Beiersdorf: shares tumble after margin outlook disappoints

(CercleFinance.com) - Beiersdorf topped full-year profit on Wednesday, but the prospect of stable margins this year failed to convince investors, who shied away, sending the shares down 5% on the Frankfurt Stock Exchange.


At over 7 billion euros in the past year, the cosmetics group's sales were down 5.7% in organic terms, which compared well with the significant decline in the market as a whole.

The company said that it gained market share in all core brands, all skin care categories, and all regions in 2020, even though its flaghship brand Nivea reported a 6% fall in organic sales last year.

Excluding special items, profit after tax fell to 636 million euros, from 788 million euros in 2019, with Beiersdorf noting that it had net cash pile of 4.7 billion euros at the end of the year.

Citing its "strong balance sheet," the Hamburg-based company plans to invest a further 300 million euros in sustainability, digitalisation, and growth markets in the next five years.

However, the shares tumbled over 5% after its margin outlook for the year 2021 fell short of analysts' expectations.

While Beiersdorf expects positive sales growth, it also forecast margins similar to their level of the previous year.

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