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Beiersdorf AG
Interim / Quarterly Report • Aug 7, 2024
55_10-q_2024-08-07_c5c510ea-abe3-4ddb-adb6-c4ded295b170.pdf
Interim / Quarterly Report
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HALF-YEAR REPORT
2024
Beiersdorf
Contents
GENERAL
Business Development - Overview ..... 3
Beiersdorf's Shares ..... 4
INTERIM MANAGEMENT REPORT - GROUP
Results of Operations - Group ..... 6
Results of Operations - Business Segments ..... 7
Net Assets - Group ..... 10
Financial Position - Group ..... 12
Employees ..... 13
Opportunities and Risks ..... 13
Outlook for 2024 ..... 14
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Income Statement ..... 16
Statement of Comprehensive Income ..... 16
Balance Sheet ..... 17
Cash Flow Statement ..... 18
Statement of Changes in Equity ..... 19
Segment Reporting ..... 20
Selected Explanatory Notes ..... 21
Responsibility Statement by the Executive Board ..... 24
Review Report ..... 25
Business Development - Overview
Beiersdorf continues to grow and confirms guidance
- Organic Group sales increase by $7.1 \%$
- Organic sales increase by $8.0 \%$ year-on-year in Consumer Business Segment
- Organic tesa sales increase by $2.9 \%$ on prior-year figure
- Group EBIT margin excluding special factors at $16.2 \%$
Guidance for 2024
- Consumer organic sales growth in the range of 6-8\%
- Consumer EBIT margin excluding special factors up 50 basis points on the prior-year level
- tesa organic sales growth in the range of 2-5\%
- tesa EBIT margin excluding special factors at previous year's level
Beiersdorf at a Glance
| Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | ||
|---|---|---|---|
| Group sales | (in $€$ million) | 4,936 | 5,175 |
| Change (organic) | (in \%) | 12.3 | 7.1 |
| Change (nominal) | (in \%) | 10.3 | 4.8 |
| Consumer sales | (in $€$ million) | 4,108 | 4,331 |
| Change (organic) | (in \%) | 14.9 | 8.0 |
| Change (nominal) | (in \%) | 12.9 | 5.4 |
| tesa sales | (in $€$ million) | 828 | 844 |
| Change (organic) | (in \%) | 1.2 | 2.9 |
| Change (nominal) | (in \%) | $-1.3$ | 2.0 |
| Operating result (EBIT, excluding special factors) | (in $€$ million) | 852 | 838 |
| EBIT margin (excluding special factors) | (in \%) | 17.3 | 16.2 |
| Operating result (EBIT) | (in $€$ million) | 862 | 848 |
| Profit after tax | (in $€$ million) | 589 | 590 |
| Return on sales after tax | (in \%) | 11.9 | 11.4 |
| Earnings per share | (in $€$ ) | 2.56 | 2.57 |
| Gross cash flow | (in $€$ million) | 718 | 769 |
| Capital expenditure | (in $€$ million) | 225 | 171 |
| Research and development expenses | (in $€$ million) | 152 | 171 |
| Employees | (number as of June 30) | 21,640 | 22,485 |
Beiersdorf's Shares
The first half of 2024 was a period of very positive price trends on the capital markets. The major share indexes hit new highs, especially in the first quarter. A sound global economic environment and the gradual easing of monetary policy created the basis for this rise in stock prices. Inflationary pressure, which had already begun to subside in the previous year, continued its downward trend. However, while inflation in the major economies fell, it was still above the targets of the US and European central banks in some cases. The European Central Bank (ECB) began to loosen monetary policy in June by cutting interest rates. In the USA, the first rate cuts are expected once inflation moves nearer to the target. The robustness of the US economy has led the Federal Reserve to keep interest rates high for the time being. China found itself in a challenging market environment with little sign of a significant upturn. Loss of wealth due to the ongoing property crisis, along with adverse developments on the stock markets, led to noticeable restraint in domestic consumer spending. Geopolitical conflicts, particularly in the Middle East and Ukraine, and the upcoming US presidential elections also influenced international financial markets. Despite these uncertainties, the favorable economic conditions and prospect of further monetary easing contributed to a positive trend on capital markets in the first half of 2024.
The oil price, a global indicator of commodity price trends, rose slightly in the first half of the year after retreating somewhat at the end of 2023. The euro-dollar exchange rate was stable in the first half of 2024 and generally ranged from 1.05 to 1.10 . The low volatility overall was explained by the uniformity of monetary policy.
Beiersdorf's shares largely moved sideways in the first quarter. By the end of the first half of the year, however, they were slightly up on the year-end closing price. The publication of the results for 2023 received a mixed reception from the market overall, while the results for the first quarter were above market expectations, particularly in the Consumer Business Segment. The temporary weakness in the tesa Business Segment and the ongoing challenges in the luxury segment were offset by the excellent performance of NIVEA and the good results for the Derma brands. This led Beiersdorf's shares to temporarily hit a new all-time high of over $€ 147$, reflecting the positive results. The announcement that the dividend would be increased to $€ 1.00$ per share, as well as the Beiersdorf's share buyback program, were also major catalysts.
As in recent years, the Annual General Meeting, which was held on April 18, 2024, took place in a virtual format at the company's headquarters in Hamburg. Shareholders could once again join the meeting online and follow it on a livestream. In addition, all shareholders could ask their questions online via a virtual speakers' desk and talk directly to the Executive Board. This enabled an interactive and dynamic virtual event, in which shareholders from all around the world could actively participate and directly raise the topics of interest to them.
Beiersdorf's shares closed the first half of 2024 at $€ 136.55$, putting them slightly higher than at the end of 2023.
| KEY FIGURES - SHARES | |||
|---|---|---|---|
| Earnings per share as of June 30 | $(\mathrm{in} €)$ | 2023 | 2024 |
| Market capitalization as of June 30 | $(\mathrm{in} €$ million) | 30.555 | 34.001 |
| Closing price as of June 30 | $(\mathrm{in} €)$ | 121.25 | 136.55 |
| Closing high for the period Jan. 1-June 30 | $(\mathrm{in} €)$ | 127.45 | 147.25 |
| Closing low for the period Jan. 1-June 30 | $(\mathrm{in} €)$ | 107.15 | 129.20 |
Beiersdorf's share price performance
(relative change in \%)
Jan. 1 - June 30, 2024
120
Beiersdorf
110
Analysts' Recommendations
(in \%)
as of June 30, 2024
22 financial analysts published regular research notes on Beiersdorf in the first half of the year. More than half of the analysts had buy recommendations for Beiersdorf's shares at the end of June 2024.
For more information on Beiersdorf's shares please visit www.beiersdorf.com/shares
For more information on Investor Relations please visit www.beiersdorf.com/investors
Interim Management Report - Group ${ }^{\star}$
Results of Operations - Group
- Organic growth of $7.1 \%$ in Group sales
- EBIT margin excluding special factors at $16.2 \%$
- Profit after tax of $€ 590$ million
GROUP SALES (IN € MILLION)
| Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change (in \%) | ||
|---|---|---|---|---|
| nominal | organic | |||
| Europe* | 2,207 | 2,331 | 5.6 | 5.5 |
| Americas | 1,299 | 1,344 | 3.4 | 3.0 |
| Africa/Asia/Australia* | 1,430 | 1,500 | 4.9 | 13.5 |
| Total | 4,936 | 5,175 | 4.8 | 7.1 |
- Change in the regional designation of Türkiye from Europe to Asia (previous year Europe: €2,221 million; previous year Africa/Asia/Australia; €1,416 million).
Beiersdorf continued its growth path in the first half of the year 2024. Organic Group sales were up $7.1 \%$ on the previous year. Exchange rate effects decreased growth by 2.3 percentage points. Nominal Group sales rose by $4.8 \%$ to reach $€ 5,175$ million (previous year: $€ 4,936$ million). In organic terms, sales increased by $8.0 \%$ in the Consumer Business Segment and by $2.9 \%$ in the tesa Business Segment.
In Europe, organic sales growth of $5.5 \%$ was achieved. Nominal sales were up $5.6 \%$ year on year at $€ 2,331$ million (previous year: $€ 2,207$ million). Organic sales in the Americas region increased by $3.0 \%$. In nominal terms, sales grew by $3.4 \%$ year-on-year to reach $€ 1,344$ million (previous year: $€ 1,299$ million). The Africa/Asia/Australia region achieved organic sales growth of $13.5 \%$. In nominal terms, sales rose by $4.9 \%$ to $€ 1,500$ million (previous year: $€ 1,430$ million).
INCOME STATEMENT (IN € MILLION)
| Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change in \% | |
|---|---|---|---|
| Sales | 4,936 | 5,175 | 4.8 |
| Cost of goods sold | $-2,088$ | $-2,112$ | 1.2 |
| Gross profit | 2,848 | 3,063 | 7.6 |
| Marketing and selling expenses | $-1,585$ | $-1,757$ | 10.9 |
| Research and development expenses | $-152$ | $-171$ | 12.4 |
| General and administrative expenses | $-254$ | $-305$ | 19.8 |
| Other operating result* | $-5$ | 8 | - |
| Operating result (EBIT, excluding special factors) | 852 | 838 | $-1.6$ |
| Special factors | 10 | 10 | - |
| Operating result (EBIT) | 862 | 848 | $-1.6$ |
| Financial result | 3 | 26 | - |
| Profit before tax | 865 | 874 | 1.1 |
| Income taxes | $-276$ | $-284$ | 3.0 |
| Profit after tax | 589 | 590 | 0.2 |
| Basic/diluted earnings per share (in $€$ ) | 2.56 | 2.57 | - |
[^0]
[^0]: * Due to the choice of numerical format (in $€$ million), there may be deviations from the amounts actually posted or rounding differences in the calculation of subtotals and final totals. In addition, the percentage changes relate to values in $€$ thousand.
The operating result (EBIT, excluding special factors) amounted to $€ 838$ million (previous year: $€ 852$ million). Cost increases related to foreign exchange rate developments were more than offset by price increases, which had a positive effect on the gross margin. Focused spend in marketing, research and development, and digitalization are helping to continue Beiersdorf's success path. The development in marketing and selling, R\&D and general and administrative expenses was due also to a more even distribution of spend over the course of the year compared to last year. Excluding special factors, the EBIT margin for the first six months of 2024 was $16.2 \%$ (previous year: $17.3 \%$ ).
The Beiersdorf Group's results of operations are determined on the basis of the operating result (EBIT) excluding special factors. Special factors amounted to $€ 10$ million (previous year: $€ 10$ million). Thereof, $€ 18$ million (previous year: $€ 10$ million) resulted from the Consumer Business Segment and $€-8$ million (previous year: $€ 0$ million) from the tesa Business Segment. EBIT including special factors stood at $€ 848$ million (previous year: $€ 862$ million). The EBIT margin was $16.4 \%$ (previous year: $17.5 \%$ ).
The financial result amounted to $€ 26$ million (previous year: $€ 3$ million), mainly due to an increase in the value of current securities in the "at fair value through profit and loss" (FVPL) category and a positive development in net interest income.
Profit after tax reached $€ 590$ million (previous year: $€ 589$ million). The return on sales after tax was $11.4 \%$ (previous year: $11.9 \%$ ). Excluding special factors, profit after tax amounted to $€ 584$ million (previous year: $€ 576$ million). The corresponding return on sales after tax was $11.3 \%$ (previous year: $11.7 \%$ ). Earnings per share were $€ 2.57$, calculated on the basis of $226,512,752$ shares (previous year: $€ 2.56$ calculated on the basis of $226,818,984$ shares). Excluding special factors, earnings per share amounted to $€ 2.54$ (previous year: $€ 2.50$ ).
Results of Operations - Business Segments
Consumer
CONSUMER SALES (IN € MILLION)
| Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change (in \%) | ||
|---|---|---|---|---|
| nominal | organic | |||
| Europe | 1,809 | 1,933 | 6.9 | 6.8 |
| Western Europe | 1,449 | 1,532 | 5.7 | 5.1 |
| Eastern Europe | 360 | 401 | 11.6 | 13.8 |
| Americas | 1,150 | 1,202 | 4.5 | 4.1 |
| North America | 543 | 534 | $-1.8$ | $-1.8$ |
| Latin America | 607 | 668 | 10.0 | 9.3 |
| Africa/Asia/Australia | 1,149 | 1,196 | 4.1 | 13.9 |
| Total | 4,108 | 4,331 | 5.4 | 8.0 |
The Consumer Business Segment recorded organic sales growth of $8.0 \%$ in the first half of the year. Exchange rate effects decreased sales by 2.6 percentage points. In nominal terms, sales were up by $5.4 \%$ to $€ 4,331$ million (previous year: $€ 4,108$ million).
Sales at NIVEA and Labello showed a double-digit growth, increasing organically by $11.1 \%$ year-on-year. Nominal sales at NIVEA and Labello climbed by $7.6 \%$ to $€ 2,956$ million (previous year: $€ 2,748$ million). The Derma business unit with the Eucerin and Aquaphor brands continued its positive trend with organic sales growth of $8.3 \%$. In nominal terms, Derma's sales grew by $7.7 \%$ to $€ 714$ million (previous year: $€ 663$ million). The Healthcare business unit, mainly comprising the plaster business, recorded a $4.0 \%$ increase in organic sales compared with the previous year. Sales grew in nominal terms by $3.5 \%$ to $€ 150$ million (previous year: $€ 145$ million). The La Prairie brand reported a $7.0 \%$ decline in organic sales. Sales fell in nominal terms by $7.2 \%$ to $€ 272$ million (previous year: $€ 294$ million).
Europe
In the Europe region, organic sales increased by $6.8 \%$. Nominal sales were up $6.9 \%$ year-on-year at $€ 1,933$ million (previous year: $€ 1,809$ million).
In Western Europe, organic sales growth amounted to $5.1 \%$, mainly driven by the very good sales performance in Germany, Italy, the United Kingdom, and Spain. In the Eastern Europe region, sales were up significantly across all countries with strong organic growth of $13.8 \%$. The prominent brands and categories in this regard were NIVEA Deo, Face Care and Body Care as well as Eucerin Sun and Face. La Prairie's sales remained below the prior year's figure due to high comparatives in 2023 related to the stock buildup by retailers after post-covid reopening.
Americas
Organic sales in the Americas region increased by $4.1 \%$. On a nominal basis, sales totaled $€ 1,202$ million, a $4.5 \%$ increase above the previous year's level of $€ 1,150$ million.
Organic sales in North America decreased by $1.8 \%$. This was due primarily to the slowdown in the sun care business due to the unfavourbale weather conditions as well as to different timing of customer orders compared with the previous year. Latin America recorded strong sales growth of $9.3 \%$, driven primarily by double-digit growth in Brazil and Mexico. Sales in Argentina were down year-on-year. NIVEA Deo and Face Care as well as Aquaphor performed particularly well.
Africa/Asia/Australia
The Africa/Asia/Australia region achieved strong organic sales growth of $13.9 \%$. Nominal sales were up $4.1 \%$ year on year at $€ 1,196$ million (previous year: $€ 1,149$ million). Sales performance was particularly strong in Indonesia, Japan, and Saudi Arabia. Both Nivea and Eucerin again showed strong development with double-digit organic sales growth. The best performers in terms of categories were NIVEA Deo, Body Care and Sun as well as Eucerin Face, Body and Sun. La Prairie recorded solid growth in China driven by e-commerce as well as strong momentum in Japan.
Special factors in the entire Consumer Business Segment totaled $€ 18$ million (previous year: $€ 10$ million). The special factors recognized in the reporting period largely comprised restructuring expenses of $€ 7$ million in the supply chain organization and the Consumer Business Segment, expenditure of $€ 1$ million from the "Care Beyond Skin" program, and other expenses of $€ 7$ million, which were mainly connected with the acquisition and integration of the Chantecaille business. Special factors also included income of $€ 33$ million from the transfer of a property in Hamburg to TROMA Alters- und Hinterbliebenenstiftung.
EBIT excluding special factors for the first half of the year stood at $€ 688$ million (previous year: $€ 700$ million). The EBIT margin was $15.9 \%$ (previous year: $17.0 \%$ ). The change versus the previous year was primarily attributable to increased focused spend in marketing, research and development, and digitalization as well as a more even distribution of spend over the course of the year compared to last year. The gross margin improved due to price increases which more than offset the exchange rate related cost increases.
tesa
| tesa SALES (IN € MILLION) | Change (in \%) | |||
|---|---|---|---|---|
| Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | nominal | organic | |
| Europe* | 398 | 398 | $-0.2$ | $-0.3$ |
| Americas | 149 | 142 | $-4.7$ | $-5.2$ |
| Africa/Asia/Australia* | 281 | 304 | 8.5 | 11.8 |
| Total | 828 | 844 | 2.0 | 2.9 |
- Change in the regional designation of Türkiye from Europe to Asia (previous year Europe: €412 million; previous year Africa/Asia/Australia: €267 million).
tesa achieved organic sales growth of $2.9 \%$ from January to June compared with the first half of the previous year. Exchange rate effects decreased this performance by 0.9 percentage points. In nominal terms, tesa therefore increased sales by $2.0 \%$ to $€ 844$ million (previous year: $€ 828$ million).
Sales growth was particularly driven by Asia, backed by positive performance in Electronics and in Printing and Packaging Solutions. The tesa Industry segment generated overall sales growth, whereas sales in the Consumer segment declined slightly year on year.
The special factors in the entire tesa Business Segment amounted to $€ 8$ million (previous year: $€ 0$ million). These result from the impairment of goodwill of tesa nie wieder bohren GmbH totaling $€ 3$ million and the impairment of the intangible assets allocated to the cash-generating unit tesa nie wieder bohren GmbH remaining from the purchase price allocation totaling $€ 5$ million.
Excluding special factors, EBIT in the tesa Business Segment declined year on year in line with expectations to $€ 150$ million (previous year: $€ 152$ million). This decline was primarily attributable to higher spend in the areas of innovation, sustainability, and digitalization. The EBIT margin was $17.8 \%$ (previous year: $18.4 \%$ ).
Net Assets - Group
| NET ASSETS (IN € MILLION) | |||
|---|---|---|---|
| Assets | Dec. 31, 2023 | June 30, 2023 | June 30, 2024 |
| Non-current assets | 6,517 | 6,642 | 6,230 |
| Inventories | 1,514 | 1,503 | 1,514 |
| Other current assets | 3,465 | 3,385 | 4,507 |
| Cash and cash equivalents | 1,133 | 1,268 | 1,200 |
| 12,629 | 12,798 | 13,451 | |
| Equity and liabilities | Dec. 31, 2023 | June 30, 2023 | June 30, 2024 |
| Equity | 8,339 | 8,188 | 8,445 |
| Non-current provisions | 500 | 519 | 466 |
| Non-current liabilities | 286 | 252 | 267 |
| Current provisions | 629 | 564 | 551 |
| Current liabilities | 2,875 | 3,275 | 3,722 |
| 12,629 | 12,798 | 13,451 |
Non-current assets decreased by $€ 412$ million as against June 30, 2023, to $€ 6,230$ million, which included a decrease in long-term securities by $€ 498$ million to $€ 2,391$ million (previous year: $€ 2,889$ million). This decline was due primarily to increased use of shortterm investments. Capital expenditure on property, plant, and equipment and on intangible assets in the first half of 2024 amounted to $€ 171$ million (previous year: $€ 225$ million). Of this amount, $€ 146$ million was attributable to the Consumer Business Segment (previous year: $€ 169$ million), largely for expanding capacity at the production facilities and the new distribution center at the Leipzig site, and $€ 25$ million was attributable to the tesa Business Segment (previous year: $€ 56$ million).
Inventories increased by $€ 11$ million to $€ 1,514$ million compared with June 30, 2023. Other current assets increased by $€ 1,122$ million versus June 30, 2023, to $€ 4,507$ million. This item includes short-term securities of $€ 1,526$ million, an increase of $€ 903$ million compared with June 30, 2023. Trade receivables rose by $€ 196$ million compared with the figure for June 30, 2023, to $€ 2,273$ million.
Cash and cash equivalents decreased by $€ 68$ million as against June 30, 2023, to $€ 1,200$ million. Net liquidity (cash, cash equivalents, and long- and short-term securities less current loan liabilities and less current and non-current lease liabilities) increased by $€ 210$ million compared with the figure for June 30, 2023, to $€ 4,625$ million. Current loan liabilities increased by $€ 90$ million and amounted to $€ 280$ million as of the reporting date due to liabilities covered at Beiersdorf AG at the beginning of July, relating in part to the share buyback program, and loans in Argentina.
Total non-current provisions and liabilities fell by $€ 38$ million compared with June 30, 2023, and stood at $€ 733$ million. This item includes provisions for pensions and other post-employment benefits, which decreased by $€ 80$ million compared with June 30, 2023, to $€ 299$ million. The increase in current liabilities to $€ 3,722$ million was largely due to the increase by $€ 296$ million in trade payables.
No major changes to Beiersdorf's capital structure are expected.
Financing Structure
(in \%)
| 66 | 6 | 28 | |
|---|---|---|---|
| Dec. 31, 2023 | |||
| 64 | 6 | 30 | |
| June 30, 2023 | |||
| 63 | 5 | 32 | |
| June 30, 2024 | |||
- Equity $\quad$ Non-current liabilities $\quad$ Current liabilities
Financial Position - Group
| CASH FLOW STATEMENT (IN € MILLION) | Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 |
|---|---|---|
| 718 | 769 | |
| Change in working capital | $-392$ | $-147$ |
| Net cash flow from operating activities | 326 | 622 |
| Net cash flow from investing activities | 318 | $-67$ |
| Free cash flow | 644 | 555 |
| Net cash flow from financing activities | $-413$ | $-478$ |
| Other changes | $-43$ | $-10$ |
| Net change in cash and cash equivalents | 188 | 67 |
| Cash and cash equivalents as of Jan. 1 | 1,080 | 1,133 |
| Cash and cash equivalents as of June 30 | 1,268 | 1,200 |
Gross cash flow amounted to $€ 769$ million and was thus $€ 51$ million higher than the prior-year value. The cash outflow from the change in net current assets was $€ 147$ million (previous year: $€ 392$ million). The $€ 738$ million increase in receivables and other assets and $€ 590$ million increase in liabilities and provisions were set against a decrease of $€ 1$ million in inventories. Overall, the net cash flow from operating activities totaled $€ 622$ million (previous year: $€ 326$ million).
The cash outflow from investing activities amounted to $€ 67$ million (previous year: cash inflow $€ 318$ million). Payments of $€ 171$ million for investments in property, plant, and equipment and intangible assets, of $€ 363$ million to acquire securities, and of $€ 2$ million for investments in associated companies and other equity interests were set against net cash inflows of $€ 376$ million from the sale of securities, of $€ 52$ million from the sale of property, plant, and equipment and intangible assets as well as of $€ 41$ million from interest and other financial income.
Free cash flow at $€ 555$ million was therefore $€ 89$ million below the prior-year figure ( $€ 644$ million). The net cash outflow from financing activities amounted to $€ 478$ million (previous year: $€ 413$ million).
Cash and cash equivalents amounted to $€ 1,200$ million (previous year: $€ 1,268$ million).
Employees
The number of employees increased by 845 compared with the figure on June 30, 2023, from 21,640 to 22,485. As of June 30, 2024, 17,136 employees worked in the Consumer Business Segment and 5,349 at tesa.
Employees by Region
(in \%)
as of June 30, 2024; total 22,485 employees
26.3
Risks and Opportunities
Regarding Beiersdorf's risks and opportunities, please refer to our Risk Report in the Group Management Report as of December 31, 2023. There are no significant changes in the overall risks and opportunities situation as of June 30, 2024.
The geopolitical situation with its ongoing conflicts remains volatile. Existing or growing tensions between the USA and China, but also between the EU and China, may negatively affect tesa's industrial business. For our luxury segment, the still low level of consumer confidence in China remains a challenge.
Global procurement markets have stabilized. However, rising volatility is to be expected given the geopolitical situation described. This also applies to currency developments, particularly for the Consumer Business Segment in the Emerging Markets. Further increases in regulatory requirements and the proper implementation of these requirements remain a major challenge for all parts of the Group.
At the time of preparing this report, there were no risks that could endanger the Beiersdorf Group's continued existence as a going concern.
Outlook for 2024
Expected Macroeconomic Developments*
The global economy is gaining some momentum. China and India are fulfilling their roles as growth drivers. Overall, interest rate hikes are weighing on the economy. Nevertheless, economic activity has picked up in some regions. In the USA, private consumption will continue to support demand, although the increase will be less robust than last year. In the eurozone, the economy showed a noticeable recovery in the first quarter, partly due to a decline in inflation. In China, the expansion dynamics are expected to slow down slightly in the second half of the year. The US Federal Reserve and the ECB are likely to lower interest rates only at the end of the year. This could lead to a slight depreciation of the euro against the US Dollar by the end of the year.
Signs are increasing that the German economy is regaining its footing. After a significant decline in gross domestic product in the last quarter of 2023, it grew slightly in the first two quarters of this year. Inflation has cooled down and is now only slightly above the ECB's declared target. The sentiment among German businesses has improved slightly in recent months, although the business climate remains at a low level. Private consumption declined in the first quarter. Interest rates have been raised by 50 basis points by the ECB since summer 2023 and, despite a slight decrease of 25 basis points in June 2024, remain at a very high level. The euro remains unchanged against the US dollar. Due to the slight upward trend and the reduced burden from energy prices, the German economy is expected to recover slowly.
The economy in the Eurozone grew for the first time in five quarters. This growth was mainly driven by slightly higher consumer spending and increased exports. The inflation rate is approaching the the ECB's target, but remains too high. A strong upturn is not expected in the second half of the year given the lack of fiscal policy stimulus, as the ECB will only moderately reduce interest rates due to ongoing inflation risks. Additionally, the results of the European elections and the early elections in France have increased political risk in the Eurozone.
The extraordinary pace of the US economic growth in the second half of the previous year could not be sustained. Growth moderated in the first two quarters of 2024. However, it should be noted that a large share of demand was met by products from inventories and abroad. The US economy is expected to grow more slowly due to high interest rates and waning fiscal support. The Fed is likely to lower the interest rates only at the end of the year, as the labor market remains tight and the inflation rate is still above the target.
For Japan, the world's fourth-largest economy, GDP declined in both quarters. Private consumption also decreased significantly. Inflation remains at a high level. This development can be attributed to the low interest rates. Overall economic output is not expected to expand significantly this year.
In the emerging markets, market sentiment and economic activity are highly mixed and, in some areas, uneven. Real GDP in China rose in the mid-single digits at the beginning of the year. China is transitioning away from the real estate towards emerging industries. Policy incentives are being implemented to stabilize growth. However, downside risks for exports remain high. The real estate crisis and weak consumer spending continue to weigh on the economy. Although Russia's wartime economy grew stronger despite sanctions from many countries, it is expected that this growth will level off. Inflation remains at a high level. The extension of oil production cuts in the Middle East is leading to slower growth. At the same time, persistently high inflation is negatively impacting growth prospects. Economies in the Middle East face significant uncertainties, as there is a risk that the conflict could spread across the entire region. In the world's most populous country, India, a new parliament has been elected. Despite the strong economic momentum, it will be necessary to initiate reforms, including reducing bureaucracy and reforming the labor market. The IT sector is expected to benefit from the trend toward the use of artificial intelligence. High inflation is squeezing consumer spending. Economic growth is projected to be in the mid-single digits this year. In Brazil, investments and private consumption are being hampered by persistently high double-digit interest rates. This is significantly slowing down the economy.
[^0]
[^0]: * Commerzbank Research.
Business Development
The described challenges and volatile developments in large areas of the world result in a high degree of uncertainty with regard to the outlook for sales markets and our business development.
Regardless of the development of the skin care market, we will continue to achieve above-market sales growth. We expect further improvement of the global skin care market in the second half of 2024. Based on this, we expect organic sales growth in the range of 6-8\% in the Consumer Business Segment. The EBIT margin from ongoing operations (excluding special factors) in the Consumer Business Segment will be 50 basis points above the previous year's level.
Subject to the same uncertainty regarding market development in 2024, we also expect sales growth above the market in the tesa Business Segment. Based on this, we expect organic sales growth in the range of 2-5\%. The EBIT margin from ongoing operations (excluding special factors) will be on the level of previous year.
Based on the forecasts of the two business segments, Group organic sales growth is expected to be in the range of 6-8\%. We expect the consolidated EBIT margin from ongoing operations (excluding special factors) to be slightly above the previous year's level.
Hamburg, August 1, 2024
Beiersdorf AG
The Executive Board
Interim Consolidated Financial Statements ${ }^{\star}$
Income Statement
| (IN € MILLION) | ||
|---|---|---|
| Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | |
| Sales | 4,936 | 5,175 |
| Cost of goods sold | $-2,088$ | $-2,112$ |
| Gross profit | 2,848 | 3,063 |
| Marketing and selling expenses | $-1,585$ | $-1,757$ |
| Research and development expenses | $-152$ | $-171$ |
| General and administrative expenses | $-254$ | $-305$ |
| Other operating income | 89 | 113 |
| Other operating expenses | $-84$ | $-95$ |
| Operating result (EBIT) | 862 | 848 |
| Interest income | 21 | 34 |
| Interest expense | $-12$ | $-18$ |
| Net pension result | $-6$ | $-5$ |
| Other financial result | 0 | 15 |
| Financial result | 3 | 26 |
| Profit before tax | 865 | 874 |
| Income taxes | $-276$ | $-284$ |
| Profit after tax | 589 | 590 |
| Of which attributable to | ||
| - Equity holders of Beiersdorf AG | 580 | 582 |
| - Non-controlling interests | 9 | 8 |
| Basic/diluted earnings per share (in $€$ ) | 2.56 | 2.57 |
Statement of Comprehensive Income
| (IN € MILLION) | Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 |
|---|---|---|
| Result after tax | 589 | 590 |
| Other comprehensive income that will be reclassified subsequently to profit or loss | $-33$ | $-34$ |
| Remeasurement of cash flow hedges ${ }^{1}$ | $-13$ | $-9$ |
| Remeasurement of securities ${ }^{1}$ | 1 | - |
| Exchange differences | $-21$ | $-25$ |
| Other comprehensive income that will not be reclassified subsequently to profit or loss | $-1$ | 33 |
| Remeasurement of defined benefit pension plans ${ }^{1}$ | $-1$ | 33 |
| Other comprehensive income | $-34$ | $-1$ |
| Total comprehensive income | 555 | 589 |
| Of which attributable to | ||
| - Equity holders of Beiersdorf AG | 548 | 582 |
| - Non-controlling interests | 7 | 7 |
| ${ }^{1}$ Net of tax |
[^0]
[^0]: * Due to the choice of numerical format (in € million), there may be deviations from the amounts actually posted or rounding differences in the calculation of subtotals and final totals. In addition, the percentage changes relate to values in $€$ thousand.
Balance Sheet
| (IN € MILLION) | |||
|---|---|---|---|
| Assets | Dec. 31, 2023 | June 30, 2023 | June 30, 2024 |
| Intangible assets | 938 | 1,094 | 930 |
| Property, plant, and equipment | 2,541 | 2,339 | 2,550 |
| Non-current financial assets/securities | 2,675 | 2,889 | 2,391 |
| Other non-current financial assets | 52 | 52 | 50 |
| Other non-current assets | 7 | 7 | 7 |
| Deferred tax assets | 304 | 263 | 302 |
| Non-current assets | 6,517 | 6,642 | 6,230 |
| Inventories | 1,514 | 1,503 | 1,514 |
| Trade receivables | 1,598 | 2,077 | 2,273 |
| Other current financial assets | 159 | 178 | 144 |
| Income tax receivables | 227 | 219 | 247 |
| Other current assets | 253 | 288 | 316 |
| Securities | 1,227 | 623 | 1,526 |
| Cash and cash equivalents | 1,133 | 1,268 | 1,200 |
| Non-current assets and disposal groups held for sale | 1 | - | 1 |
| Current assets | 6,112 | 6,156 | 7,221 |
| 12,629 | 12,798 | 13,451 | |
| Equity and liabilities | Dec. 31, 2023 | June 30, 2023 | June 30, 2024 |
| Share capital | 252 | 252 | 249 |
| Additional paid-in capital | 47 | 47 | 47 |
| Retained earnings | 8,315 | 8,145 | 8,463 |
| Accumulated other comprehensive income | $-292$ | $-270$ | $-325$ |
| Equity attributable to equity holders of Beiersdorf AG | 8,322 | 8,174 | 8,434 |
| Non-controlling interests | 17 | 14 | 11 |
| Equity | 8,339 | 8,188 | 8,445 |
| Provisions for pensions and other post-employment benefits | 350 | 379 | 299 |
| Other non-current provisions | 150 | 140 | 167 |
| Non-current financial liabilities | 153 | 104 | 134 |
| Deferred tax liabilities | 133 | 148 | 133 |
| Non-current liabilities | 786 | 771 | 733 |
| Other current provisions | 629 | 564 | 551 |
| Income tax liabilities | 152 | 208 | 231 |
| Trade payables | 2,234 | 2,552 | 2,848 |
| Other current financial liabilities | 333 | 333 | 426 |
| Other current liabilities | 156 | 182 | 217 |
| Current liabilities | 3,504 | 3,839 | 4,273 |
| 12,629 | 12,798 | 13,451 |
Cash Flow Statement
| (IN € MILLION) | Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 |
|---|---|---|
| Profit after tax | 589 | 590 |
| Reconciliation of profit after tax to net cash flow from operating activities | ||
| Income taxes | 276 | 284 |
| Financial result | $-3$ | $-26$ |
| Income taxes paid | $-254$ | $-235$ |
| Depreciation and amortization | 130 | 152 |
| Change in non-current provisions (excluding interest components and changes recognized in OCI) | $-20$ | 6 |
| Gain/loss on disposal of property, plant, and equipment, and intangible assets | - | $-2$ |
| Gross cash flow | 718 | 769 |
| Change in inventories | 54 | 1 |
| Change in receivables and other assets | $-672$ | $-738$ |
| Change in liabilities and current provisions | 226 | 590 |
| Net cash flow from operating activities | 326 | 622 |
| Investments in property, plant, and equipment, and intangible assets | $-225$ | $-171$ |
| Payments for investments in associated companies and other investments | $-3$ | $-2$ |
| Payments to acquire securities | - | $-363$ |
| Proceeds from the sale of property, plant, and equipment, and intangible assets | 45 | 52 |
| Proceeds from the sale / final maturity of securities | 461 | 376 |
| Interest received | 24 | 27 |
| Proceeds from dividends and other financing activities | 16 | 14 |
| Net cash flow from investing activities | 318 | $-67$ |
| Free cash flow | 644 | 555 |
| Proceeds from loans | 6 | 56 |
| Loan repayments | $-183$ | $-17$ |
| Repayments of lease liabilities | $-32$ | $-35$ |
| Payments for the acquisition of own shares | - | $-186$ |
| Interest paid | $-5$ | $-15$ |
| Other financing expenses paid | $-27$ | $-41$ |
| Cash dividends paid (Beiersdorf AG) | $-159$ | $-227$ |
| Cash dividends paid (non-controlling interests) | $-13$ | $-13$ |
| Net cash flow from financing activities | $-413$ | $-478$ |
| Effect of exchange rate fluctuations and other changes on cash held | $-43$ | $-10$ |
| Net change in cash and cash equivalents | 188 | 67 |
| Cash and cash equivalents as of Jan. 1 | 1,080 | 1,133 |
| Cash and cash equivalents as of June 30 | 1,268 | 1,200 |
Statement of Changes in Equity
Segment Reporting
Business Developments by Business Segment
| NET SALES (IN € MILLION) | Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change in \% | |||
|---|---|---|---|---|---|---|
| \% of total | \% of total | nominal | organic | |||
| Consumer | 4,108 | 83.2 | 4,331 | 83.7 | 5.4 | 8.0 |
| tesa | 828 | 16.8 | 844 | 16.3 | 2.0 | 2.9 |
| Total | 4,936 | 100.0 | 5,175 | 100.0 | 4.8 | 7.1 |
| EBITDA (IN € MILLION) | Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change in \% | |||
| \% of sales | \% of sales | nominal | ||||
| Consumer | 806 | 19.6 | 813 | 18.8 | 0.8 | |
| tesa | 186 | 22.5 | 187 | 22.1 | 0.8 | |
| Total | 992 | 20.1 | 1,000 | 19.3 | 0.8 |
OPERATING RESULT
(EBIT, EXCLUSIONG SPECIAL FACTORS)
(IN € MILLION)
| Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change in \% | ||||
|---|---|---|---|---|---|---|
| \% of sales | \% of sales | nominal | ||||
| Consumer | 700 | 17.0 | 688 | 15.9 | $-1.8$ | |
| tesa | 152 | 18.4 | 150 | 17.8 | $-1.0$ | |
| Total | 852 | 17.3 | 838 | 16.2 | $-1.7$ | |
| GROSS CASH FLOW (IN € MILLION) | Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change in \% | |||
| \% of sales | \% of sales | nominal | ||||
| Consumer | 584 | 14.2 | 617 | 14.2 | 5.7 | |
| tesa | 134 | 16.2 | 152 | 18.0 | 13.1 | |
| Total | 718 | 14.5 | 769 | 14.9 | 7.1 |
Regional Reporting
| NET SALES (IN € MILLION) | Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change in \% | |||
|---|---|---|---|---|---|---|
| \% of total | \% of total | nominal | organic | |||
| Europe* | 2,207 | 44.7 | 2,331 | 45.0 | 5.6 | 5.5 |
| Americas | 1,299 | 26.3 | 1,344 | 26.0 | 3.4 | 3.0 |
| Africa/Asia/Australia* | 1,430 | 29.0 | 1,500 | 29.0 | 4.9 | 13.5 |
| Total | 4,936 | 100.0 | 5,175 | 100.0 | 4.8 | 7.1 |
OPERATING RESULT
(EBIT, EXCLUSIONG SPECIAL FACTORS)
(IN € MILLION)
| Jan. 1-June 30, 2023 | Jan. 1-June 30, 2024 | Change in \% | ||||
|---|---|---|---|---|---|---|
| \% of sales | \% of sales | nominal | ||||
| Europe | 450 | 20.4 | 471 | 20.2 | 5.2 | |
| Americas | 129 | 9.9 | 72 | 5.4 | $-43,9$ | |
| Africa/Asia/Australia | 273 | 19.1 | 295 | 19.7 | 7.0 | |
| Total | 852 | 17.3 | 838 | 16.2 | $-1,7$ |
- Change in the regional designation of Türkiye from Europe to Asia (previous year Europe: €2,221 million; previous year Africa/Asia/Australia: €1,416 million).
Selected Explanatory Notes
Information on the Company and on the Group
The registered office of Beiersdorf AG is located at Beiersdorfstrasse 1 - 9 in Hamburg (Germany), and the company is registered with the commercial register of the Hamburg Local Court (Amtsgericht Hamburg) under number HRB 1787. Beiersdorf AG is included in the consolidated financial statements of maxingvest GmbH \& Co. KGaA, Hamburg. The activities of Beiersdorf AG and its affiliates ("Beiersdorf Group") consist primarily of the manufacture and distribution of branded consumer goods in the area of skin and body care, and of the manufacture and distribution of technical adhesive tapes.
Basis of Preparation
The interim consolidated financial statements for the period from January 1 to June 30, 2024, were prepared in accordance with IAS 34 "Interim Financial Reporting," as adopted by the EU. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements as of December 31, 2023.
There were no material effects from the first-time application of new standards or interpretations in the reporting period.
Accounting Policies
The figures disclosed in this interim report were prepared in accordance with the International Financial Reporting Standards (IFRS). The same accounting policies were used in the interim consolidated financial statements as in the annual consolidated financial statements for 2023.
Related Party Disclosures
Please refer to the consolidated financial statements as of December 31, 2023, for related party disclosures. Effective as of June 11, 2024, Beiersdorf Aktiengesellschaft sold the property Unnastraße 48, 20245 Hamburg with office buildings to TROMA Alters- und Hinterbliebenenstiftung based in Hamburg. This transaction was carried out under market conditions based on an expert appraisal. The purchase price amounted to $€ 48$ million. Furthermore, there were no significant changes as of June 30, 2024.
Consolidated Group, Acquisitions, and Divestments
There were no acquisitions in the reporting period.
With effect from June 25, 2024, FormFormForm Ltd. was liquidated. The business with Sugru had already been discontinued in previous years. As of the reporting date, the subsidiary shows neither assets nor liabilities in its balance sheet. tesa SE investment and intangible assets from the Purchase Price Allocation were fully written off in 2019. The dissolution of the company therefore has no effect on earnings.
As of June 28, 2024, Beiersdorf has sold 24.09\% of LYCL Inc. This has no material impact on the interim reporting.
Beyond this, there were no significant divestments in the Group in the reporting period.
For further information about the consolidated Group, please refer to the consolidated financial statements as of December 31, 2023.
Notes to the Income Statement
The special factors of $€ 10$ million shown in the results of operations in the interim management report have been allocated to other operating income and other operating expenses.
Of this, income amounting to $€ 33$ million is attributable to the transfer of a property at the Hamburg location to TROMA Alters- und Hinterbliebenenstiftung. This is offset in part by restructuring expenses for the supply chain organization and the Consumer Business Segment amounting to $€ 7$ million, expenses from the "Care-Beyond-Skin"-program amounting to $€ 1$ million and other expenses amounting to $€ 7$ million, which mainly arose in connection with the purchase and integration of the Chantecaille business. In addition, expenses from the impairment of the goodwill of tesa nie wieder bohren GmbH amounting to $€ 3$ million and impairment of the intangible assets of tesa nie wieder bohren GmbH amounting to $€ 5$ million are included, which were identified in the past as part of the purchase price allocation together with the goodwill.
Due to the negative market development and the future expectations adjusted under the difficult market conditions and the associated poorer expected cash flows in the cash-generating unit tesa nie wieder bohren GmbH , an impairment requirement arose as part of the impairment test. The recoverable amount of this cash-generating unit tesa nie wieder bohren GmbH is based on its value in use, which was determined by discounting the future cash flows planned from the continued use of the cash-generating unit tesa nie wieder bohren GmbH . The carrying amount of the cash-generating unit tesa nie wieder bohren GmbH was higher than its determined recoverable amount of $€ 9$ million, so an impairment loss of $€ 8$ million (December 31, 2023: €4 million) was recognized in the 2024 half-year financial statements. Of this, $€ 3$ million (December 31, 2023: $€ 4$ million) is attributable to the associated remaining goodwill and $€ 5$ million (December 31, 2023: $€ 0$ million) is attributable to the intangible assets remaining from the purchase price allocation and allocated to the cash-generating unit tesa nie wieder bohren GmbH .
The key parameters used to estimate the value in use were the discount rate of $12.88 \%$ (December 31, 2023: $13.93 \%$ ) and the sustainable growth rate of $1 \%$ (December 31, 2023: 3\%). The other assumptions used to determine the recoverable amount for the cash-generating unit tesa nie wieder bohren GmbH were disclosed in the consolidated financial statements as of December 31, 2023.
In addition to exchange rate effects, the other financial result for the period also includes effects from the revaluation of a financial asset within current securities in the "at fair value through profit and loss" (FVPL) category in the amount of $€ 21$ million.
When calculating earnings per share for the period January to June 2024, we used a weighted average of the shares in circulation due to the share buyback program and the necessary retirement of treasury shares. We determined this weighted average on the basis of the share buybacks. The number of shares in circulation was 226,818,984 as of January 1, 2024. As of June 30, 2024, the number of shares issued less treasury shares was $225,116,168$. Based on the buybacks, a weighted average of $226,512,752$ shares in circulation was calculated for the first half of 2024.
Notes to the Statement of Comprehensive Income
Other comprehensive income for the period ending June 30, 2024, amounted to $€-1$ million (previous year: $€-34$ million). Other comprehensive income in the first half of 2024 was positively impacted by the remeasurement of defined benefit pension plans ( $€ 33$ million) due to the increase in the discount rate relevant to the eurozone. In the comparative period, the discount rate relevant for the eurozone remained stable, which hardly led to a revaluation effect ( $€-1$ million). Positive effects from the change in the market valuation of cash flow hedges almost compensated for the negative effects from currency translation and debt instruments, which also contributed slightly to the improvement in the Group's other comprehensive income.
Notes to the Balance Sheet
For the structure and further details of our financial instruments, please refer to the consolidated financial statements as of December 31, 2023.
As at June 30, 2024, the carrying amount of the securities in the "at amortized cost" (AC) category was $€ 3,228$ million (previous year: $€ 3,278$ million). The fair value of these securities amounted to $€ 3,051$ million (previous year: $€ 2,986$ million). Securities in the "at fair value through other comprehensive income" (FVOCI) category had a value of $€ 180$ million (previous year: $€ 141$ million), while securities in the "at fair value through profit or loss" (FVPL) category had a value of $€ 510$ million (previous year: $€ 93$ million).
Securities in the "at fair value through other comprehensive income" (FVOCI) and "at fair value through profit or loss" (FVPL) categories are allocated to fair value hierarchy level 1. Derivative financial instruments with positive market values of $€ 13$ million (previous year: $€ 31$ million) and negative market values of $€ 20$ million (previous year: $€ 17$ million) are allocated to fair value hierarchy level 2. Non-current equity investments in the FVOCI category in the amount of $€ 6$ million (previous year: $€ 3$ million) and in the FVPL category in the amount of $€ 5$ million (previous year: $€ 3$ million) are allocated to fair value hierarchy level 3. In the reporting period, additions to long-term equity investments amounted to $€ 2$ million, with $€ 1$ million each attributable to the FVOCI and FVPL categories. Due to their minor significance, we have not carried out a sensitivity analysis of the parameters relevant to fair value hierarchy level 3. For the other financial assets and liabilities, there are no material differences between the carrying amounts and their fair values as at June 30, 2024. Non-current financial liabilities mainly comprised lease liabilities.
As of June 30, 2024 (as in the previous year), cash and cash equivalents did not include any significant amounts over which the Group has restricted access as a result of foreign exchange controls.
Beiersdorf Group estimated possible obligations from the new OECD Pillar Two model rules based on the financial statements of its affiliates at June 30, 2024. A calculation of the GloBE tax rate and potential top-up tax obligations per country was performed. Based on these figures, a provision for estimated top-up taxes of approximately $€ 2$ million was recorded at Group level.
Current financial liabilities as at June 30, 2024, include obligations in connection with our share buyback program in the amount of $€ 57$ million.
Notes to the Statement of Changes in Equity
On April 18, 2024, the Annual General Meeting approved a dividend of $€ 1.00$ per dividend-bearing share for the 2023 financial year. With $226,818,984$ shares entitled to dividends, the dividend payment amounted to $€ 227$ million. In previous financial years, the company had distributed a dividend of $€ 0.70$ per dividend-bearing share ( $€ 159$ million).
As at December 31, 2023, Beiersdorf AG held 25,181,016 treasury shares with a value of $€ 955$ million. This corresponds to $9.99 \%$ of the share capital. 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. The share buyback program has a volume of up to $€ 500$ million and will end on December 2, 2024, at the latest. The share buyback program will be carried out on the basis of the authorization granted by the Annual General Meeting of Beiersdorf Aktiengesellschaft on April 29, 2020. Accordingly, Beiersdorf Aktiengesellschaft is authorized to acquire treasury shares up to a total of $10 \%$ of the share capital until April 28, 2025. To implement the share buyback program, Beiersdorf retired 3,000,000 treasury shares ( $1.19 \%$ of the share capital) by resolution of the Executive Board on April 19, 2024. Beiersdorf launched the share buyback program on April 24, 2024. The total volume of shares acquired as part of the share buy-back in the period from April 24, 2024, up to and including June 30, 2024, amounts to 1,702,816 shares ( $0.68 \%$ of the share capital) with a buy-back value of $€ 243$ million. As at June 30, 2024, treasury shares amounted to $23,883,832$ shares ( $9.59 \%$ of the share capital).
Corporate Governance
The declaration of compliance with the recommendations of the German Corporate Governance Code issued by the Supervisory Board and the Executive Board for fiscal year 2023 in accordance with § 161 Aktiengesetz (German Stock Corporation Act, AktG) was published in December 2023. This is permanently available on our website at https://www.beiersdorf.com/investor-relations/ corporate-governance/declaration-of-compliance.
Events after the Reporting Date
With effect from July 12, 2024, the Executive Board of Beiersdorf AG resolved - on the basis of the corresponding authorization of the 2020 Annual General Meeting and the Executive Board resolution of 5 February 2024 (with the approval of the Supervisory Board of 5 February 2024) - to redeem 900,000 treasury shares and thus reduce the share capital by EUR 900,000.00 in order to enable the further implementation of the ongoing share buyback program of Beiersdorf AG. This capital reduction corresponded to around $0.36 \%$ of the share capital prior to the redemption and capital reduction.
In addition, the Management Board of Beiersdorf AG is expected to resolve on a further share redemption and capital reduction at the beginning of August 2024, the third in total under the current share buyback program, whereby the exact number of shares to be redeemed and the amount of the capital reduction have not yet been determined at this time.
Responsibility Statement by the Executive Board
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position, and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group in the remainder of the fiscal year.
Hamburg, August 1, 2024
Beiersdorf AG
The Executive Board
Vincent Warnery
Chairman of the Executive Board
Nicola D. Lafrentz
Member of the Executive Board
Oswald Barckhahn
Member of the Executive Board
Astrid Hermann
Member of the Executive Board
Ramon A. Mirt
Member of the Executive Board
Patrick Rasquinet
Member of the Executive Board
Review Report
To Beiersdorf Aktiengesellschaft
We have reviewed the condensed consolidated interim financial statements - comprising the consolidated balance sheet as of June 30, 2024, the consolidated income statement, consolidated statement of comprehensive income, consolidated cash flow statement, consolidated statement of changes in equity and selected explanatory notes - and the interim group management report of Beiersdorf Aktiengesellschaft, Hamburg, for the period from January 1 to June 30, 2024 which are part of the half-year financial report pursuant to § [Article] 115 WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent Company's executive directors. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.
We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion.
Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU nor that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.
Hamburg, August 2, 2024
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Michael Reuther
Wirtschaftsprüfer
[German Public Auditor]
Thorsten Dzulko
Wirtschaftsprüfer
[German Public Auditor]
Financial Calendar
2024
October 24
Quarterly Statement
January to September 2024
2025
February/March
Publication of
Annual Report 2024,
Annual Press Conference,
Financial Analyst Meeting
August
Half-Year Report 2025
April
Annual General Meeting
October
Quarterly Statement
January to September 2025
April/May
Quarterly Statement January to March 2025
Contact Information
Published by
Beiersdorf Aktiengesellschaft
Unnastrasse 48
20245 Hamburg
Germany
Editorial Team and Concept
Corporate Communications
Telephone: +49 40 4909-2001
E-mail: [email protected]
underline
The Half-Year Report is also available in German on www.beiersdorf.de
Additional Information
Corporate Communications
Telephone: +49 40 4909-2001
E-mail: [email protected]
Investor Relations
Telephone: +49 40 4909-5000
E-mail: [email protected]
Beiersdorf on the Internet
www.beiersdorf.com