Beiersdorf Earnings: Outstanding Performance Leads To Higher Sales Guidance

Narrow-moat Beiersdorf delivered a strong set of first-half 2023 results, ahead of FactSet consensus and our expectations. Growth momentum in the first quarter was maintained (12.3% organic sales growth for the first half versus 12.2% for the first quarter), with an excellent performance from the consumer segment (14.9% organic sales growth for the first half). The consumer EBIT margin also came in almost 200 basis points higher at 17%. This was partially driven by gross margin improvement (50 basis points). The performance of the Tesa business segment (17% of revenue) was more muted, delivering organic sales growth of 1.2% and a 70-basis-point decline in the EBIT margin to 18.4%.