Good
morning
to
all
of you.
I
would
like
to
welcome
you
to
Beiersdorf's
Full
Year
Results
Analyst
Meeting
here
in
Hamburg.
This
is
a
special
event
today
as
we
have
three
board
members
on
stage.
With
me
this
morning
are
Beiersdorf's
CEO,
Vincent
Warnery;
and
our
CFO,
Astrid
Hermann.
For
the
first
time,
we
have
Patrick
Rasquinet
who
joined
our
executive
board
last
year
and
is
in
charge
of
our
Pharmacy
&
Selective
brands,
including
La
Prairie
and
Eucerin.
So
I'm
looking
forward
to
a
review
of
the
year
2021
and
presentations
of
our
priorities
for
the
year
2022.
Before
we
start,
let
me
make
some
technical
remarks.
Throughout
today's
presentations,
all
participants
will
be
in
listen-only
mode.
The
presentation
will
be
followed
by
a
question-and-answer
session.
[Operator Instructions]
Okay.
So
we
will
start
now,
and
I
hand
over
to
Vincent
Warnery
for
the
introductory
statement.
V
Vincent Warnery
Thank
you,
Jens.
Good
morning,
ladies
and
gentlemen.
We
all
know
how
wrong
it
feels
to
talk
about
business
figures
these
days.
Given
the
current
developing
situation
in
Eastern
Europe,
all
our
thoughts
and
deepest
sympathy
are
with
the
people
in
Ukraine,
especially
our
colleagues
and
their
families.
As
part
of
our
commitment
to
Care
Beyond
Skin,
to
foster
peaceful
togetherness
across
borders,
Beiersdorf
has
initiated
an
immediate
aid donation
to
our
partners,
the
German
Red
Cross
and
the
aid
organization
CARE
Deutschland.
Both
organization
will
receive
€1
million
each.
The
financial
resources
have
to
be
used
as
quickly
as
possible
to
implement
projects
and
measures
to
support
people
in
Ukraine.
We
provide
humanitarian
aid
to
those
in
need.
As
a
caring
company,
we
believe
in
thriving
together
and
care
is
inclusive,
always.
Let
me
now
take
a
hard
swing
and
talk
about
the
2021
annual
results.
Astrid
Hermann,
Patrick
Rasquinet,
and
I
have
the
honor
of
presenting
the
results
of
our
past
financial
year
and
also
providing
you
with
an
outlook
for
the
current
year.
2021
was
an
extremely
successful
year
for
Beiersdorf.
Our
capital
strategy,
again,
proved
its
worth
and
showed
that
it
is
the
right
strategy
for
Beiersdorf.
Our
investments
and
our
strategic
focus
on
sustainability,
innovation,
digitalization
and
growth
are
clearly
paying
off.
We
are
impressing
our
consumers
with
sustainable
skin
care
innovations
and
thus
are
setting
ourselves
in
the
challenging
market
environment.
We
are
further
expanding
our
e-commerce
business
and
ensuring
that
we
reach
our
consumers
digitally
wherever
they
might
be.
We
are
tapping
growth
potential
and
investing
in
a
state-of-the-art
efficient
and
sustainable
global
production
and
logistic
network.
This
is
also
reflected
in
our
2021
business
figures.
Here
are
some
of
the
highlights.
Despite
ongoing
COVID-19
related
turmoil,
we
delivered
strong
organic
sales
growth
of
9.7%
at
group
level,
which
brings
us
3.2%
above
the
pre-crisis
level
of
2019.
Organic
sales
in
the
Consumer
Business
Segment
were
up
8.8%.
There
was
a
significant
contribution
from
our
e-commerce
business,
which
grew
by
a
strong
32%.
As a
result,
our
online
share
of
total
sales
in
the
Consumer
Business
Segment
now
exceeds
10%.
Growth
was
particularly
encouraging
in
the
face
care
business,
where
we
grew
10 times
faster
than
the
market
in
the
last
two
years.
This
is due in
no small
part to
our
successful NIVEA
LUMINOUS630
products.
At
the
same
time,
our
personal
and
body
care
products are
also
posting
dynamic
growth.
In
our
tesa
Business
Segment,
we
achieved
exceptional
sales
growth
of
13.6%.
This
growth
was
driven,
in
particular,
by
the
electronics
business
and
the
strong
recovery
in
the
automotive
business.
Despite
rising
material
and
procurement
costs,
we
were
able
to
keep
our
gross
margins
largely
stable.
EBIT
margin,
excluding
special
items
at
group
level,
increased
year-on-year
to
13%
despite
accelerating
cost
pressures
in
the
fourth
quarter.
Astrid
Hermann
will
now give
us
a
detailed
overview
of
our
brands
contributing
to
the
success
of
the
past
financial
year
and
other
financial
results
achieved.
A
Astrid Hermann
Thank
you,
Vincent.
I
would
like
to
welcome
you
to
our
presentation
of
the
full
year
2021.
This
was
also
my
first
year
as
CFO
of
Beiersdorf.
We
are
very
proud
of
our
strong
results,
and
I'm
happy
to
guide
you
through
our
key
financial
figures.
As
Vincent
already
mentioned
and
despite
the
current
challenging
market
environment,
we
were
able
to
achieve
growth
at
group
level,
both
on
the
top
line
as
well
as
on
the
bottom
line.
One
reason
being
our
high-service
levels
despite
significant
supply
constraints.
Organic
sales
grew
by
9.7%
year-on-year.
Effects
and
structural
effects
had
an
impact
of
1.1
percentage
points,
leading
to
a
nominal
growth
of
8.6%.
Excluding
special
factors,
our
EBIT
margin
at
group
level
increased
by
10 basis
points
to
13.0%.
We
see
a
much
improved
tax
rate
from
29.7%
in
2020
to
27.8%
in
2021.
This
is
in
line
with
our
long-standing
tax
guidance
of
around
28%
and
it
will
be
our
benchmark
going
forward.
The
return
on
sales
after
tax
also
went
up
by
10 basis
points
to
9.2%,
resulting
in
increased
earnings
per
share
of
€3
after
€2.73
in
the
previous
year.
Looking
at
our
individual
business
segments
in
more
detail.
We
grew
organic
sales
in
Consumer
by
8.8%.
The
EBIT
margin
benefited
from
this
rise
in
sales,
although
the
effect
was
offset
by
investments
in
digitalization
and
sustainability,
as
well
as
by
significant
higher
input
costs
in
the
second
half
and
especially
in
Q4.
Nevertheless,
we
were
able
to
keep
our
gross
margins
stable,
which
results
in
an
EBIT
margin
of 12.1%
for
the
full
year
2021
and
a
slight
decrease
of
20
basis
points
versus
previous
year.
In
the
tesa
Business
Segment,
we
look
back
at
a
remarkable
year
with
strong
organic
sales
growth
of
13.6%.
Here,
we
could
increase
our
EBIT
margin
by
150
basis
points
to
16.9%.
Since
the
beginning
of
this
year,
we
have
seen
a
strong
recovery
in
the
Consumer
segment.
Besides
the
outstanding
recovery
in
Q2,
which
had
been
hit
hard
by
COVID
in
2020,
we
are
pleased
to
report
positive
growth
in
all
fourth
quarters,
which
also
brings
us
above
the
2019
levels
for
the
full
year.
Let
us
now
take
a
closer
look
at
the
individual
brands
in
our
Consumer
Business
Segment.
NIVEA
generated
organic
growth
of
1.7%
in
the
fourth
quarter,
which
leads
to
an
overall
growth
of
5.5%
in
the
full
year
2021.
The
transformation
of
our
iconic
brand
is
progressing
well.
We
have
made
NIVEA
one
of
the
fastest-growing
brands
in
face
care
in
the
mass
market.
This
growth
was
supported
by
the
launch
of
products
around
our
breakthrough
innovation,
LUMINOUS630.
Furthermore,
the
body
and
sun
categories
within
skin
care
also
recorded
strong
growth
year-on-year.
Additionally,
we
kept
the
momentum
in
personal
care
led
by
the
good
development
in
our
deodorant
business.
The
Derma
business
completed
another
strong
year
with
19.5%
organic
growth.
The
key
markets
in
Germany
and
the
US
as
well
as
the
newer
markets
in
Latin
America
and
China
contributed
strongly
to
this
performance.
Derma
is
the
business
unit
with
the
highest
share
in
growth
in
e-commerce
in
2021.
On a
product
level,
Thiamidol
remains
one
of
the
main
growth
contributors.
We
were
not
only
successful
in
terms
of
net
sales,
but
at
the
same
time,
gained
market
share
in
most
categories
and
regions.
Also,
our
Hansaplast
and
Elastoplast
brands
recorded
strong
broad-based
growth
with
13.7%
sales
growth.
Our
successful
plaster
relaunch
in
the
beginning
of
the
year
and
a
strong
recovery
in
the
sports
category
boosted
our
sales.
La
Prairie
finished
the
year
up
6.1%
in
the
fourth
quarter,
a
growth
of
over
30%
when
compared
to
the
fourth
quarter
2019.
This
performance
was
primarily
driven
by
strong
acceleration
of
sellout
between
the
third
and
fourth
quarter
2021
with
especially
strong
sales
in
Hainan
and
travel
retail
more
in
general.
Additionally,
we
saw
a
strong
recovery
in
the
US.
For
the
full
year,
this
leads
to
an
overall
growth
of
20.1%.
Patrick
will
give
you
more
details
on
the
La
Prairie
strategy
in
a
few
minutes.
Next,
let
us
turn
to
the
performance
of
the
individual
regions
in
the
Consumer
Business
Segment.
In
Europe,
organic
sales
rose
by
5.8%.
We
achieved
growth
of
5.7%
in
Western
Europe. Healthy
growth rates
were recorded
in UK
and
Italy.
Face,
sun
and
body
were
successful
categories,
not
only
for
NIVEA
but
also
for
Eucerin.
We
also
saw
a
significant
contribution
from
the
recovery
of
travel
retail
at
La
Prairie,
which
is
reported
under
Western
Europe.
In
Eastern
Europe,
sales
were
up
across
all
countries
with
an
organic
sales
growth
of
6.3%.
Poland
and
Russia
were
among
the
main
contributors.
In
the
Americas
regions,
organic
sales
rose
by
15.9%.
Organic
sales
in
North
America
increased
by
13.0%.
This
was
predominantly
driven
by
the
strong
double-digit
growth
in
the
Coppertone
sun
care
business
and
continued
sales
growth
at
a
high
level
in
the
Eucerin
and
Aquaphor
brands.
Latin
America
continued
its
success
story
in
Q4
and
recorded
overall
very
strong
sales
growth
of
18.8%
for
the
full
year.
We
can
report
double-digit
sales
growth
in
just
about
all
countries,
with
Brazil,
Mexico,
and
Chile
making
the
biggest
contributions
to
this
performance.
The
Africa/Asia/Australia
region
recorded
organic
sales
growth
of
8.9%.
Our
sales
performance
was
particularly
strong
in
China,
India,
Indonesia,
as
well
as
in
African
countries,
Nigeria,
Ghana,
and
South
Africa.
On
a
brand
level,
La
Prairie
achieved
significant
year-on-year
sales
growth
in
Asia,
accompanied
by
good
performances
in
Eucerin
and
NIVEA
in
the
complete
Africa/Asia/Australia
region.
Coming
back
to
our
gross
margin
development.
We
are
very
pleased
to
report
a
stable
gross
margin
development
despite
significant
headwinds
in
the
second
half
of
the
year,
which
even
accelerated
in
Q4.
Excluding
the
diluting
effects
of
acquired
businesses,
we
would
have
reported
a
slight
margin
increase.
Pricing
had
a
positive
effect
and
was
mainly
coming
from
emerging
markets,
Derma,
Healthcare
and
La
Prairie
in
2021.
The
strong
La
Prairie
and
Derma
businesses,
the
recovery
in
sun
and
the
push
into
skincare
with
innovations
like
LUMINOUS630
helped
improve
the
quality
of
our
gross
margin.
Cost
of
sales
and
logistics
were
significant
negatives
due
to
rising
material
prices,
transportation
costs,
energy
costs,
and
headwinds
from
operational
effects.
As
already
mentioned
in
our
half
year
presentation,
we
are
very
pleased
to
see
our
working
capital
management
paying
off.
We
reduced
working
capital
significantly
also
in
the
full
year
to
5.3%
of
Consumer
sales.
There
is
significant
improvement
in
all
components
of
the
working
capital,
and
it
demonstrate
once
more
our
strong
dedication
to
this
topic
throughout
the
organization.
Turning
to
the
tesa
Business
Segment.
The
fourth
quarter
had
a
strong
prior-year
comparable,
leading
to
a
decrease
of
minus
2.6%
in
Q4.
However,
the
full
year
2021
performance
of
13.6%
is
outstanding,
especially
in
view
of
the
difficult
supply
market
for
semiconductors,
just
to
name
one
major
bottleneck.
This
growth
is
broad-based
and
coming
from
various
business
areas
and
regions,
clearly
led
by
the
electronics
business
in
Asia
and
the
global
recovery
of
the
automotive
industry.
Additionally,
the
building
industry
in
the
US
showed
strong
momentum.
The
Direct
Industries
segment
generated
growth
of
16.6%.
tesa's
Trade
Markets
business
finished
the
year
with
growth
of
9.1%.
The
business
around
General
Industrial
Markets
performed
well
throughout
the
year.
A
positive
contribution
also came
from Consumers
&
Craftsmen
and
its
e-com
business.
On
the
back
of
these
very
strong
results
and
with
continued
headwinds
from
input
cost,
we
expect
a
challenging
year
2022.
We
have
a
special
focus
on
the
following
three
business
fields.
After
two
consecutive
years
of
growth
in
the
consumer
part
of
tesa,
we
are
looking
to
further
strengthen
our
portfolio
and
the
business.
We
have
set
up
a
new
management
unit
and
a
dedicated
board
member
at
tesa
for
this
business.
We
are
expanding
our
online
presence
on
third-party
platforms
as
well
as
in
our
own
D2C
shop,
which
was
launched
in
Germany
last
year.
The
automotive
business
is
a
fast-paced
industry
that
benefits
from
two
major
trends,
e-mobility
and
automation.
Going
into
2022,
we
will
be
ready
to
serve
our
customers
once
the
bottlenecks
in
the
semiconductor
industry
are
resolved.
The
electronics
business
remains
one
of
the
most
important
growth
drivers
for
tesa.
This
part
of
the
business
is
very
much
project-driven
with
major
customers.
To
remain
competitive
in
this
area,
we
are
keeping
our
high
innovation
power.
We
are
in
a
top
position
when
it
comes
to
bonding
of
smartphone
covers
and
we
will
make
sure
to
defend
this
position
also
in
2022.
With
these
remarks,
I
am
closing
the
review
of
our
financial
results
2021
and
the
tesa
Business
and
handing
back
to
Vincent.
V
Vincent Warnery
Thank
you
so
much,
Astrid.
To
give
you
an
idea
of
the
priorities
we
are
setting
for
the
coming
financial
year, we'd
like
to
take
a
more
detailed
look
at
the
following
three
topics:
first
one,
our activities
in
the
area
of
selective
skin
care;
second, our efforts
related
to
the
further
development
of
NIVEA;
and
third,
our
activities
to
strengthen
our
innovation
network
and
grow
our
markets
in
the
US
and
China.
And
with
that,
I
will
hand over
to
Patrick
Rasquinet,
who'll
take
you
through
the
most
important
development
in
selective
skin care.
Patrick?
P
Patrick Rasquinet
Member-Executive Board, Beiersdorf AG
Thanks
so
much,
Vincent.
And
good
morning
from
my
side
as
well.
And
as
you
have
most
likely
already
noticed,
our
range
of
premium
skin care
now
consists
of
two
brands:
La
Prairie
on
one
side;
and
Chantecaille
today.
Before
I
get
to
our
new
Chantecaille
brands,
I'd
first
like
to
highlight
the
key
developments
at
La
Prairie.
As
Astrid
just
pointed
out,
financial
year
2021
was
very
successful
for
La
Prairie.
After
a
very
difficult
2020,
La
Prairie
was
able
to
navigate
successfully
through
the
COVID
crisis
and
accelerated
in
Q4
versus
Q3.
This
resulted
in
a
full
year
net
sales
growth
of
above
20%.
But
more
remarkably,
it
translated
in
a
growth
of
26%
in
terms
of
retail
sales,
performing
more
than
twice
as
fast
as
the
market.
Most
importantly,
the
net
sales
of
Q4
2021
showed
an
increase
of
30%
versus
the
same
quarter
in
2019.
This
is
due,
on
the
one
hand,
to
the
very
consistent
execution
of
our
luxury
strategy
of
focusing
on
a
very
selective
distribution,
refusing
to
engage
in
dilutive
promotional
activities,
and
offering
our
consumers
the
highest
possible
level
of
service.
On
the
other
hand,
we
were
also
very
successful
with
four
strategic
initiatives
that
we
further
accelerated
in
2021,
and
that
will
be
the
key
pillars
for
a
successful
financial
year
2022,
which
we
started
strongly,
recording
a
significant
growth
versus
last
year
in
the
current
trading.
In
China,
our
first
pillar,
we
continued
our
highly
selective
expansion,
focusing
on
the
boutique
channel,
which
is
becoming
extremely
important.
As
a
result,
our
sales
in
Mainland
China
outpaced
the
market
average
with
a
jump
of
70%
over
2019
and
over
30%
versus
2020.
The
travel
retail
business,
one
of
the
sectors
most
severely
impacted
by
the
corona
pandemic,
as
you
all
know,
recovered
significantly
in
the
past
financial
year.
In
China,
seasonal
travel
retail
business
increased
73%
over
2019
and
doubled
versus
2020.
This
growth
was
largely
driven,
of
course,
by
Hainan,
where
we
selectively
expanded
our
presence.
The
selective
expansion
of
doors
in
Hainan
will
continue
in
2022
and
will
strengthen
our
footprint
over
there.
Through
our
cooperation
with
Tmall,
the
third
pillar,
we
have
achieved
a
considerable
online
presence
in
China,
and
we
have
been
able
to
drive
the
e-commerce
business
with
very
strong
growth
rates.
This
allowed
us
to
reach
to a
lot
of
new
and
younger
consumers.
We
are
currently
laying
the
groundwork
for
further
partnership
of
this
kind
in
other
major
markets
around
the
world.
Our
highly
selective
sales
presence
has
enabled
us
to
enter
in
groundbreaking
agreements
with
our
major
retailers
to
collect
client
data
across
all
channel
and
across
all
markets.
This
makes
it
possible
for
us
to
communicate
with
our
clients,
even
in
time
of
lockdowns
and
other
restrictions.
To
this
end,
we
will
load
the
new
app
and
a
very
powerful
CRM
program
that
we
can
use
to
build
and
intensify
relationships
with
our
local
client
base
all
over
the
world
and
in
all
touch
points.
So
allow
me
now
to
turn
to
Chantecaille,
our
newly
comer
in
the
portfolio
of
Beiersdorf.
Founded
in
1997,
Chantecaille
is
headquartered
in
New
York
and
has
a
global
presence
with
a
very
strong
foothold
in
North
America
and
Asia.
The
company
offers
more
than
100
innovative
skin
care,
cosmetic,
and
fragrance
products,
bases
on
botanical
ingredients,
combining
effective
formulas
with
a
very
strong
focus
on
sustainability
and
philanthropy.
We
acquired
Chantecaille
Beaute
this
year,
and
for
us,
this
acquisition
is
another
very
important
milestone
in
the
execution
of
our
C.A.R.E.+
strategy.
We
want
to
win
with
skin
care
while
unlocking
growth
potential.
Chantecaille
ideally
complements
our
premium
skin
care
range.
While
La
Prairie is
positioned
as
a very
high-end
luxury
brand,
Chantecaille
serves
consumers
in
the
prestige
cosmetic
segment
and
is
therefore
aimed
at
the
wider
consumer
group.
With
Chantecaille,
we
aim
to
further
accelerate
our
growth
in
the
North
American
and
Asian
markets,
with
a
very
particular
focus
on
China
and
South
Korea.
Chantecaille
is
very
well
positioned
in
these
markets.
Additionally,
we
are
very
pleased
with
its
strong
e-commerce
position,
which
drives
nearly
a
quarter
of
total
sales.
We
will
manage
Chantecaille
within
our
Consumer
Business
as
a
complementary
selective
brand
and
aim
to
make
Chantecaille
the
market
leader
in
natural
beauty.
So
I
really
hope
that
my
brief
overview
of
key
developments
in
selective
skin
care
provided
you
with
some
good
insights
into
the
very
exciting
opportunities
we
are
pursuing.
And now, Vincent will talk about our plans for NIVEA.
V
Vincent Warnery
Thank
you.
Thank
you,
Patrick.
We
have
a
clearly
defined
goal
at
NIVEA.
We
want
to
reinvent
our
flagship
brand
as
a
leading
global
skin
care
brand.
This
is
the
reason
why
we
appointed
Grita
Loebsack
to
the
Executive
Board
in
December
2021.
In her
position
as
President, NIVEA,
she
assumes
global
responsibility
for
the
brand
and
will
play
a
key
role
in
making
NIVEA
an
even
more
global,
digital,
and
sustainable
brand
that
inspires
our
consumers
around
the
world.
To
accomplish
this
goal,
we'll
take
the
same
approach
that
I
already
used
for
our successful
brands,
Eucerin,
Hansaplast
and
La
Prairie.
We
introduced
a
new
operating
model
for
those
brands
a
few
years
ago,
a
model
that
embraces
a
much
stronger
global
focus
while
allowing
highly
successful
product
innovations
such
as
Thiamidol
to
emerge.
Part
of
this
approach
also
involves
an
even
stronger
positioning
of
the
brands,
both
online
and
offline.
The
result
is
double-digit
growth
for
all
three
brands
despite
global
economic
challenges.
We
intend
to
apply
the
successful
approach
to
our
iconic
NIVEA
brand
as
well.
For
this
purpose,
we
are
beginning
to
take
a
more
global
approach
to
product
launches
and
marketing
campaigns
for
our NIVEA
range.
We
want
to
implement
fewer,
but
better
and
larger
product
launches
and
campaigns.
In
specific
terms,
this
means
that
in
the
future,
innovations
and
campaigns
will
generally
be
implemented
in
all
markets
that
are
relevant
for
us.
A
good
example
of
the
NIVEA's
potential
is
our
LUMINOUS630
anti-pigment
spot
face
care
range
launched
in
2020,
a
product
that is
now
a
global
success
story
and
a
major
source
of
growth.
It
contains
highly
effective
active
ingredient
and
in-house
development
that
reduces
pigmentation
and
age
spots.
Last
year,
we
rolled
out
the
successful
care
range
and
entered
new
product
categories.
With
our
serum,
we
are
present
in
more
than
40
countries,
and
we
successfully
established
ourselves
as
a
market
leader
in
eight
countries
in
Europe,
thereby
assuming
the
position
of
market
leader
in
the
anti-spot
serum
throughout
Europe.
The
serum
is
our
most
expensive
product
in
the
entire
NIVEA
assortment.
We
intend
to
build
on
this
success
even
further
in
2022.
We
will
expand
this
range
in
the
hand care
and
the
sun
care
segments
and
our
so
very
promising
launch
into
the
eye
category.
Our
goal
is
to
double sales of
the
range
this
year
and
thereby
expand
growth
in
the
face
care
segment
and
broaden
our
market
leadership
beyond
Europe.
Digitalization
has
a
key
role
to
play
in
these
efforts.
We
view
it
as
an
increasingly
important
component
for
the
success
of
our
business
and
in
the
development
of
our
brands.
For
this
reason,
we
are
pressing
ahead
with
our
digital
transformation.
We
invest
extensively
in
digital
media
to
engage
with
consumers
all
over
the
world
and
to
meet
their
individual
aspirations.
Thanks
to
our
precision
marketing
programs
and
our
team's
effective
work
in
the
markets,
we
are
increasingly
personalizing
content.
We
strive
to
deliver
the
right
message
at
the
right
time.
In
2021,
our
digital
media
grew
43%.
Through
our
precision
marketing
campaigns,
we
have
delivered
an
outstanding
performance
in
2022.
We
will
roll
out
our
30
precision
marketing
campaigns
in
all
top
markets
including
the
NIVEA
LUMINOUS630
campaign.
In
the
US,
we
are
increasingly
using
social
media
channels
to
communicate,
since
this
is
now
the
best
way
to
reach
our
target
groups.
We
have
also
had
very
positive
experience
working
with
influencers,
viral
campaigns,
and
extending
user-generated
content,
for
example,
on
TikTok.
To
leverage
this
potential,
we'll
monitor
and
invest
in
social
platforms
even
more
closely
in
the
future
and
intensify
our
partnerships
with
influencers
as
well
as
digital
technology
provider
such
as MikMak,
Google
and
Amazon.
Sustainability
is,
of
course, a
crucial
driver
of
innovation
for
us.
Looking
back
over
the
past
year,
where
do
we
stand?
We
launched
our
first
climate-neutralized
NIVEA
product.
This
marks
an
important
milestone
in
our
product
transformation
towards
sustainability.
With
optimized
packaging
and
formulas,
we
decrease
our
carbon
footprint
and
make
our
climate
engagement
tangible
on
the
product
level
to
consumers.
We
reduced
the
amount
of
plastic
we
use
where
possible.
The
packaging
of
our
NIVEA
Naturally
Good
Body
Lotion,
for
example,
uses
50%
less
plastic
than
our
other
body
lotion
bottles
and
marks
a
true
lighthouse
in
the
context
of
material
reduction.
We
plan
to
extend
our
lightweight
packaging
approach
to
other
assortment
this
year.
We
have
broken
new
ground
by
using
recycled
aluminum
in
our
aerosol
products,
one
of
the
first
companies
on
industry
to
take
this
step.
So
where
do
we
go
from
here?
We
can
achieve
the
most
significant
impact
in
terms
of
reducing
CO2
emissions
by
revamping
existing
and
especially
popular
products.
After
all,
this
is
how
we
enable
millions
of
people
to
make
their
skin
care
routines
more
sustainable
and
make
their
own
contribution
to
climate
protection.
I'm
proud
to
announce
today
that
we'll
be
relaunching
one
of
our
classic
products
during
the
course
of
this
year,
our
NIVEA
Soft.
This
represents
a
major
step
forward
in
our
climate
engagement
especially
as
we
will
be
able
to
climate-neutralize
NIVEA
Soft
due
to
its
improved
environmental
footprint.
Now
let
me
talk
about
the
activities
to
strengthen
our
innovation
network.
We
want
to
invest
in
our
ability
to
develop
innovations
earlier
and
more
successfully
than
the
rest
of
the
market.
We
are
convinced
that
the
global
presence
of
our
research
and
development
is
key
to
empower
impactful
skin
care
innovations
that
touch
people's
lives.
We
have
assembled
a
global
research
and
development
network,
centered
around
our
skin
research
center
in
Hamburg,
Germany.
Here,
we
conduct
important
application-oriented
research.
As
we
gain
a
better
understanding
of
the
skin's
own
metabolic
processes,
we
are
able
to
develop
high-impact
products
tailored
to
specific
needs.
With
our
innovation
center
in
Shanghai,
which
opened
in
2020,
we
are
leveraging
the
potential
from
the
growth
and
innovative
power
of
the
regions,
and
also
promoting
local
skin
care
innovation
through
strong
partnership.
I
will
come
back
to
this
later.
Our
newly
built
state-of-the-art
innovation
center
in
New
Jersey
in
the
United
States
is
our
first
global
center
of
excellence
for
sun
care
products
outside
of
Hamburg.
Since
the
US
represent
the
world's
largest
sun
care
market,
a
strong
R&D
presence
in
North
America
and
an
enhanced
position
in
skin
and
sun
care
is
crucial
to
growing
our
business
in
the
region.
Our
outstanding
performance
with
Coppertone
in
the
US,
demonstrate
the
potential
of
the
region.
In
the
US,
we
achieved
strong
double-digit
organic
sales
growth
with
Coppertone
in
2021,
both
offline
and
online.
This
was
particularly
driven
by
successful
launches
of
new
products
in
the
last
year.
We
have
successfully
complemented
the
acquisition
and
integration
of
the
brand.
Coppertone
has
gained
a
market
share
for
the
first
time
since
2012.
We
intend
to
build
on
the
success
in
2022.
As
part
of
these
efforts,
we
have
taken
a
number
of
important
steps
to
strengthen
Coppertone
brand
positioning.
We
realigned
the
portfolio,
developed
innovative
products
in
the
key
applications
areas
of
family
and
sport,
revamped
the
packaging,
and
expanded
digital
consumer
communications.
We
also
want to
leverage
our
high
level
of
R&D
expertise
at
Coppertone
to
other
brands.
I
would
point
to Eucerin
Sun
as
one
such
example.
We
recently
launched
Eucerin in
the
sun
category
in
the
US.
We
introduced
seven
sun
products
that
combine
advanced
sun
protection
and
skin care
benefits.
In
the
face
care
category,
for
example,
these
include
a
product
specifically
designed
for
oily
and
acne-prone
skin.
Developed
in
collaboration
with
dermatologists,
the
products
have
clinically
proven
efficacy
and
benefit
from
Coppertone's
extensive
sun
expertise.
While
our
main
focus
in
the
US
is
the
sun
care
business,
we
see
significant
growth
potential
in
face
care
in
the
Asian
market,
especially
in
China,
the
world's
largest
face
care
market.
In
recent
years,
we
have
succeeded
in
establishing
ourselves
in
the
premium
segment
with
La
Prairie
and
Eucerin,
thanks
overall
to
our
skin care
expertise.
We
are
currently
in
the
process
of
registering
our
patented
active
ingredient
against
hyperpigmentation
in
China.
We
hope
this
will
make
us
the
first
company,
after
the
introduction
of
China's
new
cosmetic
regulation
last
year,
to
receive
approval
for
the
use
of
such
an
effective
ingredient
in
a
domestic
market.
We
are
convinced
that
this
will
open
up
significant
growth
potential
for
us.
Chinese
consumers
can
currently
order
Eucerin
and
NIVEA
with
this
active
ingredient,
W630,
through
a special
cross-border
e-commerce
channel.
We
are
receiving
such
positive
feedback
from
consumers
that
we
will
expand
the
range
of
products
in
the
NIVEA
LUMINOUS630
series
in
2022.
These
cross-border
e-commerce
channels
currently
covers
only
10%
of
the
total
online
market
potential
of
this
range.
Once
we
receive
the
registration,
we
can
expect
a
dynamic
growth
trajectory.
Our focus
also
includes
the
development
of
face
care
products
for
Chinese
consumers
that
are
specifically
designed
to
meet
their
needs.
In
this
connection,
we
have
high
expectations
for
our
cooperation
with
the
Tmall
Innovation
Center,
TMIC,
which
began
in
2020.
TMIC
helps
brands
develop
new
strategies
and
channels
to
reach
the
Chinese
market.
In
collaboration
with
TMIC,
we
have
developed
and
launched
a
number
of
products
in
2020
and
2021
that
are
specifically
designed
to
meet
the
needs
of
Chinese
consumers,
for
example,
the
NIVEA
MEN
Eye
Gel
and
NIVEA
Tone-up
Cream.
More
than
10
additional
products
have
already
been
agreed
for
2022.
In
the
years
ahead,
we
want
to
accelerate
our
pace
of
innovation
in
closer
cooperation
with
our
external
partners
such
as
Tmall
and
thereby
make
Eucerin
and
NIVEA
as
successful
as
La
Prairie
in China.
That
concludes our
overview
of
Beiersdorf's
most
important
development:
our
ambition
to
accelerate
growth
with
selective
skin
care;
to
reinvent
NIVEA
as
a
global
skin care
brand;
and
to
empower
impactful
skin care
innovations
with
a
special
focus
on
the
US
and
China.
At
this
point,
I
will
shift
back
to
Astrid
who'll
talk
to
you
about
the
outlook
for
the
current
financial
year.
A
Astrid Hermann
Thank
you,
Vincent.
In
our
last
call,
we
gave
you
a
high-level
outlook for
the
year 2022,
which
already reflected
rising
input
cost
at
that
time.
Since
then,
input
costs
have
risen
even
more
than
forecasted.
Raw
materials,
transportation
and
energy
cost
increased
to
new
highs.
At
the
same
time,
we
continue
to
invest
significantly
in
digital
and
sustainability,
in
line
with
the
investment
program
introduced
earlier.
All
these
factors
are
reflected
in
our
guidance
for
the
current
year.
We
expect
the
Consumer
Business
Segment
to
reach
mid-single-digit
full
year
sales
growth.
Regarding
operating
profitability,
we
continue
to
aim
at
slightly
improving
our
consumer
EBIT
margin
for
the
full
year
2022.
While
achieving
this
will
be
a
significant
challenge
and
will
depend
on
the
development
of
the
market
and
commodity
environment,
we
have
specific
plans
to
help
us
get
there.
One
major
contributor
to
this
margin
improvement
will
be
consistent
pricing
action
throughout
all
regions.
Another
important
factor
for
mitigating
input
cost
inflation
will
be
our
brand
channel
and
category
mix.
Further
growth
in
the
high-margin
businesses
of La
Prairie,
Derma
and
the
sun
category
is
essential.
We
will
leverage
additional
potential
for
pursuing
even
more
skin
care
and
premium
innovations.
In
addition,
we
will
work
on
operational
efficiencies.
tesa
faces
strong
comparatives
from
an
outstanding
year
2021
on
both
the
top
as
well
as
the
bottom
line.
Nevertheless,
we
expect
mid-single-digit
full
year
sales
growth.
Looking
at
the
margin
development,
2022
will
be
a
challenging
year
at
tesa.
We
have
seen
significant
input
cost
inflation
as
well
as
bottlenecks
in
the
supply
chain,
affecting
our
results
already
in
the
second
half
of
2021
and
going
into
this
year.
tesa
will
partially
offset
these
factors
with
pricing
actions.
Moreover,
profitability
will
be
affected
by
more
investments
in
sustainability,
innovation
and
digital.
We,
therefore,
expect
tesa's
full
year
EBIT
margin
from
ongoing
operations
to
be
noticeably
below
the
previous
year.
On
a
combined
basis
for
the
group,
we
are
calling
for
mid-single-digit
growth
and
an
EBIT
margin
from
ongoing
operations
at
the
level
of
previous
year.
I
thank
you
for
your
attention,
and
hand
back
to
Vincent
for
the
closing
remarks.
V
Vincent Warnery
Thanks
so
much,
Astrid.
Ladies
and
gentlemen,
looking
back,
2021
was
a
very
successful
year
for
us,
a
year
in
which
we
made
excellent
progress
in
all
areas
of
our
C.A.R.E.+
strategy.
We
unlocked
substantial
new
growth
potential,
primarily
in
selective
skin
care
with
La
Prairie
and
Chantecaille.
We
outperformed
the
market
in
the
face
care
area.
We
enhanced
our
innovating
capabilities
through
the
creation
of
a
global
R&D
network
as
well
as
through
partnerships.
We
achieved
all
the
milestones
we
define
as
part
of
the
digital
and
sustainable
transformation
of
our
company,
despite
the
many
adverse
circumstances
that
we
face,
particularly
as
a
result
of
the
corona
pandemic
and
higher
material
and
transport
cost.
The
fact
that
we
managed
to
do
all
this
is
due,
in
particular,
to
our
employees.
I
would
therefore
like
to
end
my
remarks
by
expressing
my
sincere
gratitude
to
them.
In
an
extraordinary
year,
they
achieved
results
that
were
truly
remarkable.
It
is
thanks
to
their
commitment,
discipline
and
flexibility
that
we
can
look
to
the
future
with
great
confidence.
We
thank
you
for
listening.
And
we'd
now
be
happy
to
answer
any
question
you
may
have.
J
Jens Geissler
Well,
these
were
the
priorities
for
this
year
and
the
review
of
our
full
year
figures
2021.
At
this
time,
we
will
begin
the
question-and-answer
session.
[Operator Instructions]
Please
remember
that
we
have
a
maximum
of
two
questions
per
caller.
The
first
question
is
coming
from
Guillaume
Delmas.
Hello,
Guillaume.
G
Guillaume Delmas
Analyst, UBS AG (London Branch)
Good
morning,
Vincent,
Astrid.
So
my
two
questions
are,
first,
on
your
cost
structure.
Astrid,
at
the
last
conference
call
in
November,
you
mentioned
that
you
are
expecting
a
low triple-digit
basis
points
impact
on
your
gross
margin
for
Consumer
from
higher
costs
in
the
first
half
of
2022
and
then
some
easing
in
the
back
half
of
the
year.
So
could
you
provide
maybe
an
update
on
this
as
I'm
imagining
things
have
changed
since
November?
And
still on
the
cost
structure
on
A&P,
if
you
could
also
tell
us
your
level
of
A&P
spend
as
a
percentage
of
sales
in
2021,
and
whether
you
are
planning
to
increase
A&P
spend
faster
than
sales
this
year?
And
then
my
second
question
is
more
on
2022
for
your
Consumer
division,
2022
should
be
another
year
of
recovery
based
on
the
travel
retail
channel
or for
the
sun
care
category.
So
maybe
could
you
give
us
a
sense
on
how
the
year
has
started
for
your
travel
retail
operations?
And
for
sun
care,
probably
too
early
to
say,
but
can
you
tell
us
how
far
below
your
2019
levels
you
were
with
the
NIVEA
and
Coppertone
businesses
last
year?
Thank
you.
A
Astrid Hermann
I
think
I'll
take
all
of
those
questions.
Guillaume,
thank
you
so
much.
On
the
cost
structure,
yes,
I
did
mention
that
we
were
at
a
low triple-digit
impact
and
that
we
would
see
easing
in
the
back
half.
As
we
presented
to
you,
we
did
quite
a
good
job
managing
the
pressures
in
2021
despite
seeing
a
significant
acceleration
in
the
fourth
quarter.
In
terms
of
this
year,
we
do
not
currently
expect
an
easing
in
the
back
half.
We
do
think
that
this
will
be
holding
through
the
entire
year
and
we
now
see
a
multiple
of
that
triple-digit
impact
that
I
mentioned
before.
In
terms
of
A&P,
our
A&P
spending
increased
by
30
basis
points
to
27.0%
in
2021.
This
was
primarily
driven
by
digital
investments
we've
made
with
a
focus
on
skin
care,
also
by
investments
in
our
Derma
business,
primarily
focused
behind
the
growth
markets,
US,
Germany,
Brazil,
China
and
Russia.
And
in
the
fourth
quarter,
we
didn't
take
a
foot
off
the
pedal
in
terms
of
investment.
We
really
wanted
to
make
sure
that
we
supported
the
business
and
drove
it
into
2022.
In
terms
of
your
question
on
Consumer
for
this
year,
absolutely,
we
do
think
that
assuming
markets
return
to
normal,
there
is
significant
potential
for
recovery.
Obviously,
travel
retail
as
also
Patrick
talked
about
sun
that
you
mentioned,
but
also
other
categories
that
were
impacted,
such
as
lip,
men
and
so
on,
there
is
significant
potential.
We
have
started
the
year
well,
really
well,
actually,
and
we
see
a
real
acceleration
of
growth
in
Consumer
for
the
first
quarter.
All
brands
are
contributing
to
this
growth
with
NIVEA
and
La
Prairie
actually
accelerating
the
growth,
while
Derma
and
Healthcare
are
growing
at
a
high
level.
J
Jens Geissler
So
we
move
on.
You fine,
Guillaume?
We
move
on
to
the
next
caller,
please.
We
have
Iain
Simpson
on
the
line.
Iain?
I
Iain Simpson
Analyst, Barclays Capital Securities Ltd.
Good
morning.
Could
we
start
with
NIVEA,
please?
I'm
looking
at
the
Nielsen
data.
It
looks
like
market
share
gain
accelerated here
towards
the
end
of the
year.
You've
said
that,
that
started
well.
Could
you
give
us
a
sense
of
exactly
where
the
market
share
gains
are coming
from
in
NIVEA,
whether
by
kind of
category
or
country,
what's
driving
the
outperformance?
And
then
secondly,
Chantecaille.
You're
clearly
quite
excited
about
the
opportunity
there.
Could
you
perhaps
give
us
a
little
bit
of
a
sense
of
what
you
plan
to
do
with
it?
Is
it
a
case
of
doing
stuff
with
the
innovation
or
putting
more
money
behind
marketing
or
dropping
it
into
your distribution
platform?
What
do
you
see
as
the
opportunities
for
Chantecaille
that
makes
you
sort
of
better
owners
for
it?
Thank
you
very
much.
V
Vincent Warnery
Thank
you, Iain.
I
will
take
the
first
question,
and
Patrick
will
answer
the
question
on
Chantecaille.
On
NIVEA,
we
are
overall
gaining
market
share.
And
you
saw
that
we
grew
at
plus
5.5%
last
year.
What
is
particularly
important
is
the
growth
in
face
care.
I
mentioned,
already
in
my
speech,
we
grew
in
face
care
10 times
faster
than
the
market
versus
2019.
And
that's
particularly
strong
in
emerging
market,
has
been
the
case
over
the
year.
But
also
since
six
months,
we
are
overperforming
the
markets
in
Europe,
which
is,
as
you
know,
the
most
important
part of
the
business.
And
I
can
tell
you
also
that
in
a
country
like
Germany,
I
got
yesterday
the
news
that
we
got
in
January
the
best-ever
market
share
of
NIVEA.
So
that's
giving
us
a
lot
of
hope.
What
is
also
interesting
is
that
while
we
are
gaining
market
share
on
face
care,
while
we
are also
gaining
market
share
on
sun
care,
we
are also
progressing
on
the
core
category
of
body
and
deo,
which
are
obviously
essential
for
the
penetration
of
the
brand.
Patrick,
Chantecaille?
P
Patrick Rasquinet
Member-Executive Board, Beiersdorf AG
Yes.
So
indeed,
we
are
very
excited
about
the
potential
of
Chantecaille.
And
we
strongly
believe
that
it
offers
a
lot
of
opportunities
in
many
different
areas.
And
maybe
to
answer
directly
your
question,
we
clearly
see
a
lot
of
potential
in
terms
of
geographic
footprint,
but
also
in
terms
of
distribution
footprint.
As
I
said
earlier,
they
are
excelling
in
e-commerce
and
we
want
to
expand
this
expertise
that
they
have
in
other
part
of
the
world.
As
I
said,
they
have
a
presence
mainly
in
North
America
and
in
Asia,
and
we
want
to
expand
this
business
in
this
region.
Of
course,
we
want
to
support
them,
and
I
mentioned
it
quickly
in
my
overview.
They
will
be
still
a
stand-alone
business
sitting
into
the
overall
Selective
&
Pharmacy
branch
division.
They
will
be
operated
independently.
However,
we
want
to
work
on
potential
synergies
with
La
Prairie
and
in
some
very
specific
areas
like
R&D,
supply
chain,
or
even
production.
J
Jens Geissler
So
we
move
on
to
the
next
caller.
I
can
see
we
have
Celine
Pannuti
on
the
line.
Hello,
Celine.
Next
should
be
Celine.
C
Celine Pannuti
Analyst, JPMorgan Securities Plc
Yes.
Thank
you
very
much.
Good
morning,
everyone.
So
my
first
question
is
on
China.
Can
you
tell
us
what
was
the
growth
in
China
in
2021?
And
whether
you've
also
experienced
a
slowdown
in
the
fourth
quarter?
And
what
is
your
outlook
for
2022
for
the
market?
But
it
seems
that
you
have
a
lot
of
activity,
so
would
like
to
understand
how
you
see
your
performance
versus
maybe
a
slower
market
in
2022 there.
And
my
second
question
is
trying
to
understand
the
bridge.
Astrid,
you
provided
30-basis point
pricing
benefit
in
2021.
What
should
we
expect
for
2022?
And
equally
for
the
mix,
which
was
a
40-basis point
benefit
to
gross
margin
in
2021,
how
much
catch-up
we
still
have
to
do
from
what
you
mentioned
in
terms
of
recovery
of
travel
retail,
La
Prairie,
and
sun
to
understand
that?
And
just,
sorry,
on
pricing,
if
you
could
talk
about
how
your
pricing
negotiation
are
happening,
that
will
be
useful?
Thank
you
so
much.
V
Vincent Warnery
Thank
you,
Celine.
I
will
take
the
first
question
on
China,
but
perhaps
will
also
ask
Patrick
to
add
some
color
on
La
Prairie.
Celine,
in
China,
we
grew
in
2021
by
30%;
three, zero.
So
a
very,
very
strong
performance on
all
our
brands.
So
not
only
La
Prairie,
and
Patrick
will
talk
about
the
figures,
but
also
on
Eucerin
and
NIVEA.
You
might
remember
that
we
launched
Eucerin
three
years
ago.
It
was
the
fourth
attempt
to
launch
Eucerin
and
very
good
news
that
we
are
overperforming
the
market.
We
are
absolutely
now
in
line
with
our
business
plan.
We
gained
last
year,
for
example,
more
than
500,000
new
users.
Big
success
of
Thiamidol,
mainly
on
cross-border,
and
this
is
where
the
potential
registration
of
Thiamidol
in
local
China
will
be a
huge
game
changer.
So
overall,
plus
30%.
Patrick,
on
La
Prairie,
we're
also
extremely
happy
with
China.
P
Patrick Rasquinet
Member-Executive Board, Beiersdorf AG
Yeah,
absolutely.
Maybe
I
can
split
the
China
topic
in
two
distinct
topics.
One
is
Mainland
China,
obviously,
where
we
are
performing
extremely
well
and
much
faster
than
the
market
and
the
competition.
I
can
give
you
some
numbers
to
give
you
a
flavor,
but
we
grew
by
over
30%
in
2021
versus
2020,
and
we
are
even
at
a
pace
of
over
70%
versus
the
year
2019.
This
is
mainly
driven
by
the
opening
of
boutiques,
but
again,
very
selectively.
As
you
know,
we
have
a
very
selective
distribution.
We
remain
extremely
scarce,
let's
say,
in our distribution
even
in
Mainland
China.
And
of
course,
thanks
to
Tmall,
that
was
a
real
growth
provider
and
allowing
us
to
reach
out
to
new
consumers.
We
managed
to
increase
our
client
base
by
around
10%
in
China
only
through
Tmall.
And
it
also
allowed
us
to
target
younger
consumers
because
we
noticed
that
the
consumers
going
on
Tmall
are
three
to
four
years
younger
than
the
average
consumer
group
that
we
have
in
China.
And
then
the
second
bucket
of
China
is,
of
course,
the
travel
retail
China.
No
need
to
tell
you
that
Hainan
for
us
is
booming,
but
also
travel
retail
China
in
general,
and
I'm
thinking
of
the
airports
like
Shanghai
or
Beijing.
So
there also
very
impressive
growth.
We
even
doubled
our
business
in
2021
versus
2020.
V
Vincent Warnery
And
to
conclude
your
question,
Celine,
the
prospect
for
2022,
we
are
extremely
optimistic.
Obviously,
on
the
Eucerin,
NIVEA,
we have
a
lot
of
things
to
do.
But
I
can
share
with
you,
Patrick,
that
we
saw,
for
example,
in
January,
that
we
tripled
our
business
in
Hainan
with
La
Prairie.
So
absolutely
no
slowdown.
And
on
contrary,
a very
hope –
a
lot
of
hope,
also
including
Chantecaille
in
China
for
2022.
Astrid?
A
Astrid Hermann
Celine,
on
your
question
related
to
the
margin
bridge.
So
the
pricing
impact
shown
there,
of
course,
was
the
impact
on
margin,
not
on
sales
growth.
The
impact
on
sales
growth
would
have
been
a
multiple
of
that
number.
And
we
are
expecting
that
to
accelerate
in
2022.
As
I
mentioned
both
in
my
speech
as
well
as
in
replies
previously,
we
are
trying
to
really
accelerate
pricing
in
all
regions,
whereas
this
year
– or
in
2021,
we
took
pricing
primarily
in
emerging
markets
as
well
as
our
beyond
businesses,
La
Prairie,
Derma
and
Healthcare,
we
are
looking
to
take
pricing
globally
this
year
and
likely
in
two
rounds.
So
we
should
see
a
significant
acceleration
of
that
both
in
the
first
half
as
well
as
in
the
second.
In
terms
of
mix,
similarly
to
what
I
just
replied
to
Guillaume,
there
should
be
significant
upside
to
mix
and
we
are
planning
for
that.
It
does
depend
somewhat
on
the
recovery
of,
let's
say,
the
COVID-related
impacted
categories,
travel,
retail,
sun,
lip,
men
and
so
on.
But
we
do
think
we
have
some
significant
opportunity
on
mix
as
well
still
in
2022.
And
then
pricing
negotiations
are
going
well.
They're
always
tough,
of
course,
but
they're
going
well.
We
don't
foresee
currently
any
challenges
there.
J
Jens Geissler
Okay.
So
we
move
on
to
the
next
caller.
I
can
see
here
Bruno
Monteyne.
Good
morning,
Bruno.
B
Bruno Monteyne
Analyst, Bernstein Autonomous LLP
Good
morning,
everybody.
Just
one
more
remaining
question.
If
I
look
at
the
two-year
sort
of
growth
CAGR
[ph]
first
(00:50:05)
2019
to
take
out
the
noise
from
COVID,
the
last
three
quarters
that
are
sequentially
slowing
down
every
single
quarter,
and
so
there doesn't
seem
to
be
a
sort
of
ramp-up
or
sort
of
further
acceleration
in
growth.
Is
there
any
reason
for
that?
And
then sort
of
what
gives
you
the
confidence
that
you
sort
of will
be
back
up
to
5%
or
mid-single
digits
for
2022? Is
that
largely
on
the
back
of
pricing
or
is
there
anything
else
that
we
should
look
forward
to
in
2022?
A
Astrid Hermann
So
while
the
comparisons,
obviously,
in
the
fourth
quarter
in
the
back
half
period
versus
2022
become
just
more
challenging,
we
are
very
happy
with
the
development
of our
business.
We
did
mention
that
NIVEA
was
impacted
in
the
fourth
quarter
by
COVID-related
lockdowns
still
in
many
parts
of
the
world,
including
in
emerging
markets,
in
Europe
and
in
Japan.
We
did
see
very,
very
strong
dynamics
from
the
rest
of
the
business,
double-digit
growth
in
Healthcare
and
Derma.
Very
strong
growth
in
La
Prairie.
As
we
mentioned,
versus
2019,
we're
talking
about
30%
growth.
So
we
do
think
we
have
good
momentum
and
even
stronger
acceleration
into
Q1.
J
Jens Geissler
So
next
in
our
line
I
have
Olivier
Nicolai.
Olivier,
hello.
O
Olivier Nicolai
Analyst, Goldman Sachs International
Hi.
Good
morning,
Vincent,
Astrid
and
Patrick.
Just
got
a
couple
of
questions,
please.
First,
a
follow-up
of
the
La
Prairie
brand,
which
has
a
very
strong
growth
in
Q4.
You
gave
us
some
indication
about
the
trend
in
China,
but
can
you
give
us
an
idea
of
the
underlying
demand
for
La
Prairie
in
Europe
and
in
the
US?
And
then
just
secondly
on
NIVEA
[indiscernible]
(00:51:52)
for
2022.
We
obviously
hear
a
lot
about
consumer
disposable
income
in
Europe
or
in
the
US
becoming
under
pressure
because
of
inflation.
Are
you
concerned
that
it
could
have
an
impact
on
NIVEA's
demand?
Thank
you.
V
Vincent Warnery
Patrick
will
take
the
first
question.
I
will
take
the
second
one.
P
Patrick Rasquinet
Member-Executive Board, Beiersdorf AG
Yes.
So
concerning
the
underlying
demand,
so
first
of
all,
I
want
to
give
you
another
number
concerning
the
Q4.
You have
seen
the
net
sales
growth
of
6%.
But
I
would
like
also
to
mention
to
you
that
a
very
important
indicator
for
us
is
the
sellout
figures.
And
we
have
seen
sellout
figures
or
retail
sales
if
you
want
of
above
20%
in
the
fourth
quarter
of
2021.
Obviously,
this
still
relate
a
lot
to
China
and
to
travel
retail.
But
we
had
also
very
nice
growth
in
the
United
States.
So
we
ended
the
year
also
with
a
double-digit
growth,
above
20%
in
the
United
States,
so
showing
really
an
acceleration
of
the
sellout
figures
in
the
United
States.
In
Europe,
it's
still
a
mixed
bag
of
figures,
especially
that
the
first
half
was
still
impacted
by
the
COVID,
to
a
still
reopening
lockdown
and
so
forth.
But
we
start
to
see
an
acceleration,
of
course,
on
a
much
lower
basis
in
Europe
in
the
last
quarter
and
as
well
now
at
the
beginning
of
this
year.
V
Vincent Warnery
Olivier,
on
your
question
on
NIVEA.
Yes,
you're
absolutely
right,
for
a
brand
like
NIVEA,
which
is
really
the
value-for-money
brand,
we
might
feel
we
might
face
some
issue
when
we
increase
prices.
What
is
very
interesting,
in
fact,
is
that,
first,
we
didn't
see
any
elasticity,
which
is
a
good
news.
And
the
second
good
news
is that,
as
I
mentioned,
the
best-ever launch
of
NIVEA
is
LUMINOUS630.
This
is
also
the
highest
ever
consumer
price
we
positioned
in
the
market.
We
are
selling
LUMINOUS630
for
around
€20,
which
is
4
times
the
price
you
could
find
for
a
basic
moisturizer
of
NIVEA
and
we
saw
absolutely
zero
issues.
So
we
are,
as
Astrid
was
saying,
we
are
running
price
increase.
We
are
doing
that,
obviously,
not
on
a
one-size-fits-all
approach.
But
we
believe
that
especially
in
those
new
categories
which
are
the
priority
for
the
brand,
face
care,
sun
care,
we
have
some
opportunity
to
increase
our
penetration
despite
increased
prices.
J
Jens Geissler
So
we
move
on
to
Deutsche
Bank
and
Tom
Sykes.
Hello,
Tom.
T
Tom Sykes
Analyst, Deutsche Bank AG
Yeah.
Good morning.
Morning,
everybody.
Firstly,
just
on
Derma,
please.
You
did
say
that,
that
was
driving
a
lot
of
your
e-com
sales.
Could
you
just
remind
us
how
much
of
your
Derma
business
is
in
e-com
and
what
channels
and
perhaps
what
geographies
are
particularly
driving
the
e-commerce
at
the
moment?
Obviously,
you
highlighted
the
opportunity
in
China.
And
then,
just
you
seem
to
draw
the
sort
of
the
link
in
some
of your
mass
products
between
increasing
the
sustainability
credentials
and
then
driving
the
growth
there.
So
I
just
wondered
where
you
had sort
of
increased
sustainability
credentials
and
then putting
the
green
slash
on
the
product or
something.
What
sort
of
uplift
or
in
sales
or
share
that
you've
seen
in
some
of those
mass
products
when
you
had
done
that,
please?
V
Vincent Warnery
Patrick
will
take
the
first
question.
P
Patrick Rasquinet
Member-Executive Board, Beiersdorf AG
Yes.
Very
good.
So
I
mean
Eucerin
is
the
brand
with
the
highest
share
of
e-commerce
within
the
portfolio
of
our
brands,
very
close
to
La
Prairie.
So
it's
above
20%
share
in
e-commerce,
so
very
strong.
And
this is
coming
mainly
from
two
key
markets.
In
fact,
this
is,
on
one
side,
the
United
States
and
on
the
other
side,
China,
where
we
have
excellent
results
in
terms
of
e-commerce,
and
of
course,
through
the
usual
platforms
like
Tmall
on
one
side,
Amazon
on
the
other
one,
but
also
through
the
retailers.
So
this
is
to
answer
your
question
on
e-commerce
for
Eucerin.
V
Vincent Warnery
A
very
good
question
on
sustainability.
What
is
interesting,
it's
to
see
indeed
the
impact
on
purchase.
We
have
a
very
good
example,
which
is
close
to
my
heart,
which
is
France,
a
difficult
country
for
NIVEA.
We
had
a
very
good
success
with
this
range
I
was
mentioning
in
my
speech,
which
is
Naturally
Good,
where
we
have
in
the
[indiscernible]
(00:56:20),
which
is
extremely
key
in
France,
which
has
green
–
which
is
green.
And
this
is
one
of
the
best
launch
we
have
ever
done
in
France.
We
clearly
saw
that
the
new
target
consumers,
so
younger
target,
was
interested
in
this
product,
which
is
a
range
which
is
on
multiple
categories,
face care,
body,
deodorants,
shower.
We
saw
clearly
the
interest
of
consumers,
and
we
saw
that
being
green
on
this
app
was
essential.
This
is
why
also
we
are
being
courageous
enough
to
change
our
number
one
product,
NIVEA Soft, and
to
come
with
a
renewed
formula,
which
is
much
more
sustainable,
changing
some
critical
ingredients,
also
working
on
the
plastic,
working
on
all
the
elements
of
the
product.
And
we
feel
that
we'll not
only
keep
our
existing
consumers,
which
is
essential
for a
core SKU like this one,
but
also
recruit
new
consumers.
I
could
also
mention
the
MagicBAR
that
we
have
launched. And
also,
we
see
clearly,
especially
for
the
young
targets,
especially
for
Europe,
that
this
appeal
for
sustainable
products
is
really
bringing
a
lot
of
new
consumers
and
much
better
equity
to
the
NIVEA
brand.
J
Jens Geissler
Next
on
line
would
be
Emma of
Royal
Bank
of
Canada.
Emma,
please
go
ahead.
E
Emma Letheren
Analyst, RBC Europe Ltd.
Hi.
Morning,
everyone.
You mentioned
Russia
was
one
of the
biggest
contributors to
your
growth
in
Eastern
Europe
in
2021.
So
I'm
wondering
how
big
is
Russia
for
you?
It's
about
3%
to
4%
of
group
sales,
would
that
be
about
right?
And
what
growth
rate
are you
assuming
in
your
sales
guidance
for
[ph]
this
region
(00:57:55)?
And
then
my
second
question
is
that
how
are
you
feeling
about
prioritizing
meeting
that
guidance
for
margin
improvement
in
your Consumer
Business.
If
the
macro
environment
deteriorates,
are
you
concerned
that this
might
constrain
your
ability
to
make
the
necessary
investments
behind
your
brand?
Thank
you.
V
Vincent Warnery
Astrid, do
you
want
to
take
the
questions?
A
Astrid Hermann
Sure.
In
terms
of
Russia,
as
a
percent
of
our
business,
actually
Russia
and
Ukraine,
let's
take
that
together,
but
it's
not
a
material
part
of
our
financial
results.
It
reflects
less
than
3%
of
the
top
line
and
less
so
on
the
bottom
line.
Therefore,
we
are
at
the
moment
in
terms
of
pure
business
results,
less
concerned.
Obviously,
very
much
concerned
with
our
employees
on
the
ground
and
making
sure
that
they
are
safe.
In
terms
of
your
question
on
advertising
and
margin
guidance,
we
obviously
look
to
continue
to
support
our
business
strongly.
We've
talked
about
the
innovations
that
we
have
and
what
we're
trying
to
achieve.
So
clearly,
that
also
requires
the
right
advertising.
At
the
same
time,
as
we
have
continued
to
expand
where
we
do
advertising,
on
which
digital
platforms,
precision
marketing
and
so
on,
we
also
have
opportunities
to
streamline
and
create
more
effective
advertising
than
maybe
in
the
past.
So
it'll
be
a
good
mixture,
and
we
will
keep
that
quite
flexible
to
ensure
that
we
drive
business.
J
Jens Geissler
So
we
move
on
to
Société
Générale,
David
Hayes.
David,
good
morning.
D
David Hayes
Analyst, Société Générale SA (UK)
Good morning,
all.
Thank
you.
So
my
two
questions,
one
on
operational
efficiencies
and
one
on
the
new
NIVEA
head.
So
just
on
the
operational
efficiencies,
I
think
you
talked
about
having
operational
efficiencies
in
the
plan
in
terms
of
margin
delivery. I just
wonder
whether
you
can
quantify
that
or
is
that
just
a
generic
sort
of
comment
in
terms
of
being
focused
on
cost,
generally?
And
then
the
second
one
on
the
head
of
NIVEA.
You've obviously
deployed
an
external
hire in
the
last
few
months.
So a
question
there,
why
external?
And
what
are
the
objectives
that
are
being
laid
out
for
the
new
hire
in
terms
of
taking
NIVEA
forward?
What
might be
different
with
NIVEA
under
that
new
leadership?
Thank
you
so
much.
A
Astrid Hermann
David,
I
will
take
your
first
question
and
then
I
think
Vincent
you
will
take
the
second
one.
On
operational
efficiencies,
we
have
both
concrete
plans
on
what
we
will
drive.
I
will
not
at
the
moment
share
obviously
the
exact
impact
for
you.
But
there
are
concrete
plans.
At
the
same
time,
we
will
also
continue
to
look
everywhere
as
obviously
the
very
uncertain
volatile
environment
requires
us
to
do
so.
V
Vincent Warnery
On
your
question
on
NIVEA,
David,
important
to
know
that
Patrick,
my
neighbor,
was
the
last
promotion
to
the
board,
has
been
27
years
with
the
company.
I
could
mention
also our
Head of R&D,
Gitta
Neufang,
[ph]
after (01:00:54)
being
with
the
company
for
17
years.
But
indeed
also,
we
recruited
Oswald
Barckhahn,
in
charge
of
Europe
and
North
America;
and
Grita
Loebsack,
in
charge
of
NIVEA
brand.
Grita
has
been
managing
the
skin
care
global
business
of
our
top
two
competitors.
She's
German,
and
she
has
a
very
respected
expertise
in
skin
care.
So
the
mandate
is
pretty
clear,
and
I
mentioned
that
in
my
speech,
we
want
to,
not
develop,
we
want
to
reinvent
NIVEA
as
a
global
skin care.
I
am
convinced
that
the
future
of
the
brand
and
the
path
of
the
brand
is
much
more
in
skin
care,
in
face
care
than
in,
for
example,
personal
care.
So
the
mandate
of
Grita
is
to
drive
this
transformation
of
NIVEA
into
the
leading
skin care
company
to
have
a
much
stronger
drive
on
the
business.
She's
not
a
CMO.
She's
a
President
of
NIVEA,
which
means
that
she
has
the
last
word
regarding
any
kind
of
NIVEA
activity
in
the
world.
She
has
a
very
strong
digital
savviness
and
we
are already
implementing
her
first
thoughts
on
how
to
be
even
more
aggressive
digitally.
So
she
is – really
be
the
one
transforming
NIVEA
with
the
full
support
of
the
board.
J
Jens Geissler
Okay.
So
next,
I
can
see
we
have
Karel
Zoete,
Kepler.
Karel,
good
morning.
K
Karel Zoete
Analyst, Kepler Cheuvreux SA (Netherlands)
Good
morning,
all.
Thanks for
taking
the
questions.
I've
two
questions.
The
first
one
is
basically
a
follow-up
on
the
last
one.
You
seem
to
get
a
more
centralized
approach
with
regards
to
your
brands,
and
NIVEA,
in
particular.
What
does
this
mean
for
the
organization
and,
for
example,
for
the
go-to-market
model
more
locally?
And
the
second
question
is
on
the
growth
outlook
provided
for
Consumer.
You
sound
upbeat
on
the
momentum
in
skin
care.
There's
still
more
pricing
coming
and
there's
an
Asian comparison
base
in sun
and
in
travel
still
in
H1.
So
why
just
mid-single-digit
growth?
What
is
dragging
the
growth
down,
if
you
like?
Those
are
the
two
questions.
Thanks.
[ph]
V
Vincent Warnery
Thank you (01:03:07)
for
the
questions.
I
will
take
the
first
one,
and
thank
you
so
much
for
asking
it.
The
interesting
thing
with
NIVEA,
we
used
to
have 100
CMOs.
So
everybody
in
the
country
is
reinventing
the
wheel
and
adapting
the
global
launches
to
their
all
local
consumers
but
not
in
a
very
scientific
way.
I
think
together
with –
and
you're
absolutely
right,
the
stronger
centralization
of
decision-making,
we
are also
defining
better
the
roles
and
responsibilities.
We
are
asking
the
countries
to
activate,
to
be
winning
on
the
market,
to
spend
their
time
meeting
retailers,
driving
the
brand
into
the
stores,
being
sure
so
that
they
report
consumer
insight
together
with
the
globalization
of
marketing.
We
are
also
creating
center
of
excellence
in
the
US,
in
Korea,
in
France,
in
Brazil,
in
Thailand
in
order
to
be
sure
that
we
have
also
these
insights
coming
from
the
country.
But
I
think
it's
really
about
defining
properly
who
is
doing
what
in
the
company
with
what's
been
perhaps
a
little
bit
too
much
decentralized
in
the
past.
Astrid,
you
want
to take
the
second
question?
A
Astrid Hermann
Sure.
Thank
you,
Karel.
I
think
you've
captured
our
growth
drivers
quite
well.
They
are
the
ones
that
we're
absolutely
driving.
And
now
that
could
lead
to
more
than
mid-single-digit
growth.
And
certainly,
our
ambition
is
to
drive
as
much
growth
as
we
can.
At
the
same
time,
we
have
highlighted
that
we
continue
to
live
in
a
very
volatile
world
and
that's
primarily
also
the
impact
of
that.
We
need
to
see
how
it
goes.
Our
ambition
is
to
grow
certainly
above
market.
J
Jens Geissler
So
next
in
line
we
have
Berenberg.
Hello,
Fulvio.
Good
morning.
F
Fulvio Cazzol
Yes.
Good
morning.
Thank
you
for
taking
my
questions.
I
just
have
two
quick
ones.
The
first
one
is
on
the
€300
million
investment
that
you
announced
12
months
ago.
Can
you
tell
us
how
much
of
this
was
spent
in
2021
and
how
much
is
included
in
the
guidance
of
2022?
And
then
also,
apologies
if
I
missed
this,
but
anything
you
can
say
in
terms
of
CapEx
spend
for
2022
and
beyond,
please?
Thank
you.
V
Vincent Warnery
Astrid?
A
Astrid Hermann
So
both
of
those
go
to
me.
Thank
you
so
much.
So
as
we
announced
in
February
2021,
this
€300
million
investment
behind
digitalization,
sustainability,
and
growth
markets,
we at
that
time
announced
that
it
will
be
front-loaded
investment,
essentially
more
so
in
the
first
two
parts
of
the
–
or
two
first
years
of
that
five-year
period,
and
that
we
have
been
executing.
We
did
spend
a
double-digit
million
amount
in
2021
and
expect
to
spend
the
same
or
a
similar
amount
in
2022,
though,
we
will
keep
that
flexible
as
well.
For
CapEx,
we
did
have
one
of
our
strongest
year
in
terms
of
CapEx
in
2021,
actually,
the
strongest
year
in
the
group
history.
We
spent
more
than
€400
million
on
CapEx,
really
driving
our
manufacturing
logistic
network.
And
that
was
up
€133
million
versus
the
previous
figure.
And
we
continue
to
be
quite
ambitious
about
investing
in
CapEx.
As
you
know,
we
have
our
manufacturing
footprint
investment
and
the
high
of
that
will
be
now
in
2022.
We
will
see
then
also
benefits
from
that
in
coming
years
in
terms
of
costs.
J
Jens Geissler
I
can
see
that
Redburn
is
next
with
Chris
Pitcher.
Hello,
Chris.
C
Christopher Michael Pitcher
Analyst, Redburn (Europe) Ltd.
Hello,
there.
Thank
you
for
the
questions.
A
couple
from
me.
Firstly
on
tesa,
could
you
give
us
a
sense
for
what
happened
in
costs
and
the
margin
performance
in
2021?
And
when
you
talk
about
a
down
margin
this
year, are we
talking
a sort
of
return
to
2020
levels?
And
within
that,
could
you
explain
some
of
the
benefits
you
expect
to
come
from
the
governance
changes
you
discussed? You
mentioned
a
dedicated
management
unit.
Does
this
mean
we
could
expect
perhaps
more
acquisition
capital
to
be
allocated
to
tesa?
And
then
secondly,
an
encouraging
performance
on
margins
and on
the
outlook.
I
haven't
had
the
chance
to read
the
annual
report
yet,
but
have
margins
and
cash
flow
become
embedded
in
long-term
remuneration
yet
or
just
to
understand
how
the
look
is
longer
term
on
that?
Thank
you.
A
Astrid Hermann
Chris,
I
will
take
your
question
on
tesa.
And
there
were
quite
a
few
questions
actually
hidden
within
that,
but
let
me
explain
it
as
follows.
2021
saw
a
significant
increase
in
cost
for
tesa
in
the
back
half.
Similarly
to
what
we've
experienced
in
Consumer
as
well,
tesa
was
partially
able
to
offset
that
through
pricing,
but
did
feel
the
effect
of
that
very
clearly.
In
terms
of
versus
2020,
our
margin
guidance
does
not
go
down
to
that
level.
We
are
more
ambitious
than
that
for
2020,
but
we
are, as
we're
saying,
tesa
will
be
impacted
by
material
costs
and
the
investments
in
2022.
And
in
terms
of
governance
and
the
related
acquisition,
tesa,
similarly
to
Consumer,
is
looking
obviously
for
the
right
acquisition
targets
that
fit
from
a
strategic
and
financial
perspective,
and
we're
absolutely
open
to
that.
In
terms
of
remuneration,
Vincent?
V
Vincent Warnery
Yeah.
I
will
take
this
question.
The
board
has
a
long-term
remuneration,
which
is a
plan
2021/2024,
which
is
really
split
into
two big
areas.
One
is
performance,
so
net
sales,
market
share,
and
delivering
the
EBIT.
And
the
second
one,
which
is
the
transformation
of
the
company,
with
four
big
buckets.
The
first
one
is
digitalization
with
very
precise
KPI,
white
spaces
with
a
focus
on
China,
US
emerging
markets.
Sustainability,
we
have
very
important
milestones
to
deliver.
This
is
one
of
them
being,
for
example,
the
transformation
of
NIVEA
Soft.
And
last
but
not
the
least,
also,
diversity.
As
you
might
know,
we
have
the
pledge,
the
engagement
of
having
50%
of
our management
position
occupied
by
female
leaders
by
2025.
J
Jens Geissler
So
next
in
our
line
here
would
be
Stifel,
Rogerio.
Hello?
R
Rogerio Fujimori
Analyst, Stifel Europe Bank AG (UK)
Hello.
Good
morning. And
thanks
for
taking my
questions.
I
have
two
follow-ups
on
La
Prairie.
First of
all,
just
wondering
if
you
could
talk
about
the
magnitude
of
the
global
price
increase
taken
at
the
end
of
last
year
for
La
Prairie.
And
the
second
is
I was wondering
if
you
could
elaborate
on
the
market
growth
momentum
that
you
see
in
China
looking
at
Jan
and
February
together
given
that
the
earlier
timing
of
Chinese
New
Year
obviously
[ph]
flatter (01:09:55)
the
January
numbers.
And
actually, if
I
could
squeeze
a
quick
third
on
La
Prairie.
How
does
the
planned
space
contribution
for
La
Prairie
from
selective
openings
this
year
compares
to
2021,
i.e.,
should
we
expect
a
similar
contribution
from
space
for
top
line
for
La
Prairie
this
year?
Thank
you.
V
Vincent Warnery
Sorry.
May
I
ask
you
to
repeat
the
second
question?
I
didn't
get
it
on
China,
if
you
don't
mind.
R
Rogerio Fujimori
Analyst, Stifel Europe Bank AG (UK)
Just
talk
a
little
bit
about
the
market
growth
momentum
in
China
because
I
think
January
was
strong
because
of
the
earlier
Chinese
New
Year
obviously
helps
January.
But
if
you
could
talk
about
Jan
and
February
combined,
it
will
be
great.
Thank
you.
V
Vincent Warnery
Good.
Let
me
start
in
the
opposite
orders
of
your
questions,
so
let
me
start
with
the
opening
of
distribution.
In
fact,
when
we
talk
about
opening
of
doors,
we
are always
talking
about
very
low-digit
opening.
So as
you
know,
we
probably
opened
last
year
in
2021,
close
to
10
doors
and
not
more.
And
we
intend
as
well
probably
in
2022
to
also
go
in
the
area
of
10 doors.
And
again,
mainly
in
the
countries
or
the
channels
that
are
really
booming
like
Hainan
or
like
Mainland
China.
In
terms
of
trend
in
the
market
in
China,
you're
absolutely
right
that
January
was
very
positively
impacted
also
by
the
Chinese
New
Year.
We
see
a
lesser
growth
in
February,
but
we
see
a
pickup
again
in
the
last
week
of
February.
So
no
signs
that
the
market
is
cooling
down.
So
still
having
some
nice
high single-digit
growth.
And
very
interestingly,
we
are
trending,
of
course,
by
far,
beyond
this
market
trend.
In
terms
of
magnitude
of
the
price
increase,
so
we
will
continue
our
usual
price
increase.
Obviously,
I
cannot
communicate
in
detail
of
this.
But
this
is
something
every
year
we
act
upon
very
carefully,
and
we
continue
to
increase
the
price
depending
on
the
external
factors.
J
Jens Geissler
Okay.
So
we
have the
last
caller.
We
have
Pinar
Ergun
of
Morgan
Stanley.
Pinar,
good
morning.
P
Pinar Ergun
Analyst, Morgan Stanley Securities Ltd.
Good
morning.
Thanks
for
taking
my
question.
A
follow-up
on
NIVEA,
please.
You've
talked
about
the
impressive
improvements
of
face
care.
How
do
you
think
about
the
rest?
When
can
we
get
to
a
point
with
all
categories
powering
ahead
in
NIVEA?
And
then
a
second
one
on
cash.
Very
strong
working
capital
improvement
this
year.
Do
you
view
this
new
level
as
sustainable?
And
how
is
the
company's
thinking
on
cash
use
is evolving?
Thank
you.
V
Vincent Warnery
Thank
you
for
your
questions.
Not
all
categories
are
priority
for
NIVEA.
I
mentioned
face
care,
this
is
by
far
the
most
important
category.
And
even
within
face
care,
I
would
mention,
the –
even
skin
category
is
LUMINOUS630
and
the
anti-age
category
where
we
are
growing
12
times
faster
than
the
market.
We
have
also
as a
key
priority,
sun
care
and
body
care.
Sun
care,
we
gained
market
share
on
NIVEA.
We have
also
the
fantastic
success
of
Coppertone.
This
is
clearly
a
priority
for
NIVEA,
and
the
year
is
starting
very
well.
But
we
have
also
the
body
market.
Body
is
our
penetration
market,
and
we
have
the
relaunch
of
some
iconic
products
and
the
all-purpose
cream,
as
I was
mentioning,
but
also
some
relaunch on Naturally
Good.
What
is
also
important
for
us
is
deodorants.
This
is
a
business
which
is
particularly
important
in
emerging
market
and
particularly
in
country
like
Brazil.
As
I
said,
we
managed
to
gain
market
share
despite
the
fact
that
clearly
the
investment
was
much
more
on
face
care
than
on
deodorant,
proving
the
strength
of
the
brand.
And
it's
true
that
the
new
innovation,
the
sustainable
innovation
will
help
us
maintaining
this
kind
of
market
share.
What
is
less
a
priority
is
categories
like
shower,
like
soaps,
where we
have
a
few
local
businesses
where
we
maintain
the
sales,
but
this
is
clearly
not
an
area
where
we
have
a
strong
opportunity
to
win.
And
this
is
not
where
we
want
to
develop
the
NIVEA
brand
in
the
future.
A
Astrid Hermann
In
terms
of
your
question
on
cash
and
working
capital.
So
on
working
capital,
obviously,
we're
very
excited
about
the
strong
results
we've
achieved.
We
do
want
to
hold
or
improve
those.
But
let
me
be
a
little
bit
more
specific
there.
We
absolutely
want
to
hold
and
improve
strong
level
in
terms
of
days
sales
and days
payables
outstanding.
In
terms
of
inventory,
we
will
manage
that
quite
flexibly
to
ensure
that
we
have
very
strong
supply.
We
might
want
to, depending
on
the
situation
and
the
market,
increase
our
inventory
to
be
very
reactive
and
be
able
to
service
our
customers
and
consumers.
In
terms
of
cash
use,
we're
obviously
very
happy
about
the
acquisition
of
Chantecaille
and
think
that
was
a
very
good
move
forward.
And
we
will
continue
to
look
for
other
opportunities
as
well.
J
Jens Geissler
Okay.
This
concludes
our
Q&A
session.
Thank
you
for
having
joined
our
conference
call.
We
appreciate
your
interest
in
Beiersdorf.
So
thank
you
and
good-bye.
Good morning to all of you. I would like to welcome you to Beiersdorf's Full Year Results Analyst Meeting here in Hamburg.
This is a special event today as we have three board members on stage. With me this morning are Beiersdorf's CEO, Vincent Warnery; and our CFO, Astrid Hermann. For the first time, we have Patrick Rasquinet who joined our executive board last year and is in charge of our Pharmacy & Selective brands, including La Prairie and Eucerin. So I'm looking forward to a review of the year 2021 and presentations of our priorities for the year 2022.
Before we start, let me make some technical remarks. Throughout today's presentations, all participants will be in listen-only mode. The presentation will be followed by a question-and-answer session. [Operator Instructions]
Okay. So we will start now, and I hand over to Vincent Warnery for the introductory statement.
Thank you, Jens. Good morning, ladies and gentlemen. We all know how wrong it feels to talk about business figures these days. Given the current developing situation in Eastern Europe, all our thoughts and deepest sympathy are with the people in Ukraine, especially our colleagues and their families. As part of our commitment to Care Beyond Skin, to foster peaceful togetherness across borders, Beiersdorf has initiated an immediate aid donation to our partners, the German Red Cross and the aid organization CARE Deutschland.
Both organization will receive €1 million each. The financial resources have to be used as quickly as possible to implement projects and measures to support people in Ukraine. We provide humanitarian aid to those in need. As a caring company, we believe in thriving together and care is inclusive, always.
Let me now take a hard swing and talk about the 2021 annual results. Astrid Hermann, Patrick Rasquinet, and I have the honor of presenting the results of our past financial year and also providing you with an outlook for the current year. 2021 was an extremely successful year for Beiersdorf. Our capital strategy, again, proved its worth and showed that it is the right strategy for Beiersdorf. Our investments and our strategic focus on sustainability, innovation, digitalization and growth are clearly paying off.
We are impressing our consumers with sustainable skin care innovations and thus are setting ourselves in the challenging market environment. We are further expanding our e-commerce business and ensuring that we reach our consumers digitally wherever they might be. We are tapping growth potential and investing in a state-of-the-art efficient and sustainable global production and logistic network. This is also reflected in our 2021 business figures. Here are some of the highlights.
Despite ongoing COVID-19 related turmoil, we delivered strong organic sales growth of 9.7% at group level, which brings us 3.2% above the pre-crisis level of 2019. Organic sales in the Consumer Business Segment were up 8.8%. There was a significant contribution from our e-commerce business, which grew by a strong 32%. As a result, our online share of total sales in the Consumer Business Segment now exceeds 10%. Growth was particularly encouraging in the face care business, where we grew 10 times faster than the market in the last two years. This is due in no small part to our successful NIVEA LUMINOUS630 products.
At the same time, our personal and body care products are also posting dynamic growth. In our tesa Business Segment, we achieved exceptional sales growth of 13.6%. This growth was driven, in particular, by the electronics business and the strong recovery in the automotive business. Despite rising material and procurement costs, we were able to keep our gross margins largely stable. EBIT margin, excluding special items at group level, increased year-on-year to 13% despite accelerating cost pressures in the fourth quarter.
Astrid Hermann will now give us a detailed overview of our brands contributing to the success of the past financial year and other financial results achieved.
Thank you, Vincent. I would like to welcome you to our presentation of the full year 2021. This was also my first year as CFO of Beiersdorf. We are very proud of our strong results, and I'm happy to guide you through our key financial figures. As Vincent already mentioned and despite the current challenging market environment, we were able to achieve growth at group level, both on the top line as well as on the bottom line. One reason being our high-service levels despite significant supply constraints.
Organic sales grew by 9.7% year-on-year. Effects and structural effects had an impact of 1.1 percentage points, leading to a nominal growth of 8.6%. Excluding special factors, our EBIT margin at group level increased by 10 basis points to 13.0%. We see a much improved tax rate from 29.7% in 2020 to 27.8% in 2021. This is in line with our long-standing tax guidance of around 28% and it will be our benchmark going forward. The return on sales after tax also went up by 10 basis points to 9.2%, resulting in increased earnings per share of €3 after €2.73 in the previous year.
Looking at our individual business segments in more detail. We grew organic sales in Consumer by 8.8%. The EBIT margin benefited from this rise in sales, although the effect was offset by investments in digitalization and sustainability, as well as by significant higher input costs in the second half and especially in Q4. Nevertheless, we were able to keep our gross margins stable, which results in an EBIT margin of 12.1% for the full year 2021 and a slight decrease of 20 basis points versus previous year.
In the tesa Business Segment, we look back at a remarkable year with strong organic sales growth of 13.6%. Here, we could increase our EBIT margin by 150 basis points to 16.9%. Since the beginning of this year, we have seen a strong recovery in the Consumer segment. Besides the outstanding recovery in Q2, which had been hit hard by COVID in 2020, we are pleased to report positive growth in all fourth quarters, which also brings us above the 2019 levels for the full year.
Let us now take a closer look at the individual brands in our Consumer Business Segment. NIVEA generated organic growth of 1.7% in the fourth quarter, which leads to an overall growth of 5.5% in the full year 2021. The transformation of our iconic brand is progressing well. We have made NIVEA one of the fastest-growing brands in face care in the mass market. This growth was supported by the launch of products around our breakthrough innovation, LUMINOUS630.
Furthermore, the body and sun categories within skin care also recorded strong growth year-on-year. Additionally, we kept the momentum in personal care led by the good development in our deodorant business. The Derma business completed another strong year with 19.5% organic growth. The key markets in Germany and the US as well as the newer markets in Latin America and China contributed strongly to this performance. Derma is the business unit with the highest share in growth in e-commerce in 2021.
On a product level, Thiamidol remains one of the main growth contributors. We were not only successful in terms of net sales, but at the same time, gained market share in most categories and regions. Also, our Hansaplast and Elastoplast brands recorded strong broad-based growth with 13.7% sales growth. Our successful plaster relaunch in the beginning of the year and a strong recovery in the sports category boosted our sales.
La Prairie finished the year up 6.1% in the fourth quarter, a growth of over 30% when compared to the fourth quarter 2019. This performance was primarily driven by strong acceleration of sellout between the third and fourth quarter 2021 with especially strong sales in Hainan and travel retail more in general. Additionally, we saw a strong recovery in the US. For the full year, this leads to an overall growth of 20.1%. Patrick will give you more details on the La Prairie strategy in a few minutes.
Next, let us turn to the performance of the individual regions in the Consumer Business Segment. In Europe, organic sales rose by 5.8%. We achieved growth of 5.7% in Western Europe. Healthy growth rates were recorded in UK and Italy. Face, sun and body were successful categories, not only for NIVEA but also for Eucerin. We also saw a significant contribution from the recovery of travel retail at La Prairie, which is reported under Western Europe.
In Eastern Europe, sales were up across all countries with an organic sales growth of 6.3%. Poland and Russia were among the main contributors.
In the Americas regions, organic sales rose by 15.9%. Organic sales in North America increased by 13.0%. This was predominantly driven by the strong double-digit growth in the Coppertone sun care business and continued sales growth at a high level in the Eucerin and Aquaphor brands.
Latin America continued its success story in Q4 and recorded overall very strong sales growth of 18.8% for the full year. We can report double-digit sales growth in just about all countries, with Brazil, Mexico, and Chile making the biggest contributions to this performance.
The Africa/Asia/Australia region recorded organic sales growth of 8.9%. Our sales performance was particularly strong in China, India, Indonesia, as well as in African countries, Nigeria, Ghana, and South Africa. On a brand level, La Prairie achieved significant year-on-year sales growth in Asia, accompanied by good performances in Eucerin and NIVEA in the complete Africa/Asia/Australia region.
Coming back to our gross margin development. We are very pleased to report a stable gross margin development despite significant headwinds in the second half of the year, which even accelerated in Q4. Excluding the diluting effects of acquired businesses, we would have reported a slight margin increase. Pricing had a positive effect and was mainly coming from emerging markets, Derma, Healthcare and La Prairie in 2021.
The strong La Prairie and Derma businesses, the recovery in sun and the push into skincare with innovations like LUMINOUS630 helped improve the quality of our gross margin. Cost of sales and logistics were significant negatives due to rising material prices, transportation costs, energy costs, and headwinds from operational effects.
As already mentioned in our half year presentation, we are very pleased to see our working capital management paying off. We reduced working capital significantly also in the full year to 5.3% of Consumer sales. There is significant improvement in all components of the working capital, and it demonstrate once more our strong dedication to this topic throughout the organization.
Turning to the tesa Business Segment. The fourth quarter had a strong prior-year comparable, leading to a decrease of minus 2.6% in Q4. However, the full year 2021 performance of 13.6% is outstanding, especially in view of the difficult supply market for semiconductors, just to name one major bottleneck. This growth is broad-based and coming from various business areas and regions, clearly led by the electronics business in Asia and the global recovery of the automotive industry. Additionally, the building industry in the US showed strong momentum.
The Direct Industries segment generated growth of 16.6%. tesa's Trade Markets business finished the year with growth of 9.1%. The business around General Industrial Markets performed well throughout the year. A positive contribution also came from Consumers & Craftsmen and its e-com business.
On the back of these very strong results and with continued headwinds from input cost, we expect a challenging year 2022. We have a special focus on the following three business fields. After two consecutive years of growth in the consumer part of tesa, we are looking to further strengthen our portfolio and the business. We have set up a new management unit and a dedicated board member at tesa for this business. We are expanding our online presence on third-party platforms as well as in our own D2C shop, which was launched in Germany last year.
The automotive business is a fast-paced industry that benefits from two major trends, e-mobility and automation. Going into 2022, we will be ready to serve our customers once the bottlenecks in the semiconductor industry are resolved. The electronics business remains one of the most important growth drivers for tesa. This part of the business is very much project-driven with major customers. To remain competitive in this area, we are keeping our high innovation power. We are in a top position when it comes to bonding of smartphone covers and we will make sure to defend this position also in 2022.
With these remarks, I am closing the review of our financial results 2021 and the tesa Business and handing back to Vincent.
Thank you so much, Astrid. To give you an idea of the priorities we are setting for the coming financial year, we'd like to take a more detailed look at the following three topics: first one, our activities in the area of selective skin care; second, our efforts related to the further development of NIVEA; and third, our activities to strengthen our innovation network and grow our markets in the US and China.
And with that, I will hand over to Patrick Rasquinet, who'll take you through the most important development in selective skin care. Patrick?
Thanks so much, Vincent. And good morning from my side as well. And as you have most likely already noticed, our range of premium skin care now consists of two brands: La Prairie on one side; and Chantecaille today.
Before I get to our new Chantecaille brands, I'd first like to highlight the key developments at La Prairie. As Astrid just pointed out, financial year 2021 was very successful for La Prairie. After a very difficult 2020, La Prairie was able to navigate successfully through the COVID crisis and accelerated in Q4 versus Q3. This resulted in a full year net sales growth of above 20%. But more remarkably, it translated in a growth of 26% in terms of retail sales, performing more than twice as fast as the market.
Most importantly, the net sales of Q4 2021 showed an increase of 30% versus the same quarter in 2019. This is due, on the one hand, to the very consistent execution of our luxury strategy of focusing on a very selective distribution, refusing to engage in dilutive promotional activities, and offering our consumers the highest possible level of service. On the other hand, we were also very successful with four strategic initiatives that we further accelerated in 2021, and that will be the key pillars for a successful financial year 2022, which we started strongly, recording a significant growth versus last year in the current trading.
In China, our first pillar, we continued our highly selective expansion, focusing on the boutique channel, which is becoming extremely important. As a result, our sales in Mainland China outpaced the market average with a jump of 70% over 2019 and over 30% versus 2020. The travel retail business, one of the sectors most severely impacted by the corona pandemic, as you all know, recovered significantly in the past financial year. In China, seasonal travel retail business increased 73% over 2019 and doubled versus 2020. This growth was largely driven, of course, by Hainan, where we selectively expanded our presence. The selective expansion of doors in Hainan will continue in 2022 and will strengthen our footprint over there.
Through our cooperation with Tmall, the third pillar, we have achieved a considerable online presence in China, and we have been able to drive the e-commerce business with very strong growth rates. This allowed us to reach to a lot of new and younger consumers. We are currently laying the groundwork for further partnership of this kind in other major markets around the world.
Our highly selective sales presence has enabled us to enter in groundbreaking agreements with our major retailers to collect client data across all channel and across all markets. This makes it possible for us to communicate with our clients, even in time of lockdowns and other restrictions. To this end, we will load the new app and a very powerful CRM program that we can use to build and intensify relationships with our local client base all over the world and in all touch points.
So allow me now to turn to Chantecaille, our newly comer in the portfolio of Beiersdorf. Founded in 1997, Chantecaille is headquartered in New York and has a global presence with a very strong foothold in North America and Asia. The company offers more than 100 innovative skin care, cosmetic, and fragrance products, bases on botanical ingredients, combining effective formulas with a very strong focus on sustainability and philanthropy.
We acquired Chantecaille Beaute this year, and for us, this acquisition is another very important milestone in the execution of our C.A.R.E.+ strategy. We want to win with skin care while unlocking growth potential. Chantecaille ideally complements our premium skin care range. While La Prairie is positioned as a very high-end luxury brand, Chantecaille serves consumers in the prestige cosmetic segment and is therefore aimed at the wider consumer group. With Chantecaille, we aim to further accelerate our growth in the North American and Asian markets, with a very particular focus on China and South Korea. Chantecaille is very well positioned in these markets.
Additionally, we are very pleased with its strong e-commerce position, which drives nearly a quarter of total sales. We will manage Chantecaille within our Consumer Business as a complementary selective brand and aim to make Chantecaille the market leader in natural beauty.
So I really hope that my brief overview of key developments in selective skin care provided you with some good insights into the very exciting opportunities we are pursuing.
And now, Vincent will talk about our plans for NIVEA.
Thank you. Thank you, Patrick. We have a clearly defined goal at NIVEA. We want to reinvent our flagship brand as a leading global skin care brand. This is the reason why we appointed Grita Loebsack to the Executive Board in December 2021. In her position as President, NIVEA, she assumes global responsibility for the brand and will play a key role in making NIVEA an even more global, digital, and sustainable brand that inspires our consumers around the world.
To accomplish this goal, we'll take the same approach that I already used for our successful brands, Eucerin, Hansaplast and La Prairie. We introduced a new operating model for those brands a few years ago, a model that embraces a much stronger global focus while allowing highly successful product innovations such as Thiamidol to emerge. Part of this approach also involves an even stronger positioning of the brands, both online and offline. The result is double-digit growth for all three brands despite global economic challenges. We intend to apply the successful approach to our iconic NIVEA brand as well.
For this purpose, we are beginning to take a more global approach to product launches and marketing campaigns for our NIVEA range. We want to implement fewer, but better and larger product launches and campaigns. In specific terms, this means that in the future, innovations and campaigns will generally be implemented in all markets that are relevant for us. A good example of the NIVEA's potential is our LUMINOUS630 anti-pigment spot face care range launched in 2020, a product that is now a global success story and a major source of growth. It contains highly effective active ingredient and in-house development that reduces pigmentation and age spots.
Last year, we rolled out the successful care range and entered new product categories. With our serum, we are present in more than 40 countries, and we successfully established ourselves as a market leader in eight countries in Europe, thereby assuming the position of market leader in the anti-spot serum throughout Europe. The serum is our most expensive product in the entire NIVEA assortment. We intend to build on this success even further in 2022. We will expand this range in the hand care and the sun care segments and our so very promising launch into the eye category. Our goal is to double sales of the range this year and thereby expand growth in the face care segment and broaden our market leadership beyond Europe.
Digitalization has a key role to play in these efforts. We view it as an increasingly important component for the success of our business and in the development of our brands. For this reason, we are pressing ahead with our digital transformation. We invest extensively in digital media to engage with consumers all over the world and to meet their individual aspirations. Thanks to our precision marketing programs and our team's effective work in the markets, we are increasingly personalizing content. We strive to deliver the right message at the right time.
In 2021, our digital media grew 43%. Through our precision marketing campaigns, we have delivered an outstanding performance in 2022. We will roll out our 30 precision marketing campaigns in all top markets including the NIVEA LUMINOUS630 campaign.
In the US, we are increasingly using social media channels to communicate, since this is now the best way to reach our target groups. We have also had very positive experience working with influencers, viral campaigns, and extending user-generated content, for example, on TikTok. To leverage this potential, we'll monitor and invest in social platforms even more closely in the future and intensify our partnerships with influencers as well as digital technology provider such as MikMak, Google and Amazon.
Sustainability is, of course, a crucial driver of innovation for us. Looking back over the past year, where do we stand? We launched our first climate-neutralized NIVEA product. This marks an important milestone in our product transformation towards sustainability. With optimized packaging and formulas, we decrease our carbon footprint and make our climate engagement tangible on the product level to consumers.
We reduced the amount of plastic we use where possible. The packaging of our NIVEA Naturally Good Body Lotion, for example, uses 50% less plastic than our other body lotion bottles and marks a true lighthouse in the context of material reduction. We plan to extend our lightweight packaging approach to other assortment this year. We have broken new ground by using recycled aluminum in our aerosol products, one of the first companies on industry to take this step.
So where do we go from here? We can achieve the most significant impact in terms of reducing CO2 emissions by revamping existing and especially popular products. After all, this is how we enable millions of people to make their skin care routines more sustainable and make their own contribution to climate protection.
I'm proud to announce today that we'll be relaunching one of our classic products during the course of this year, our NIVEA Soft. This represents a major step forward in our climate engagement especially as we will be able to climate-neutralize NIVEA Soft due to its improved environmental footprint.
Now let me talk about the activities to strengthen our innovation network. We want to invest in our ability to develop innovations earlier and more successfully than the rest of the market. We are convinced that the global presence of our research and development is key to empower impactful skin care innovations that touch people's lives. We have assembled a global research and development network, centered around our skin research center in Hamburg, Germany. Here, we conduct important application-oriented research. As we gain a better understanding of the skin's own metabolic processes, we are able to develop high-impact products tailored to specific needs.
With our innovation center in Shanghai, which opened in 2020, we are leveraging the potential from the growth and innovative power of the regions, and also promoting local skin care innovation through strong partnership. I will come back to this later.
Our newly built state-of-the-art innovation center in New Jersey in the United States is our first global center of excellence for sun care products outside of Hamburg. Since the US represent the world's largest sun care market, a strong R&D presence in North America and an enhanced position in skin and sun care is crucial to growing our business in the region. Our outstanding performance with Coppertone in the US, demonstrate the potential of the region. In the US, we achieved strong double-digit organic sales growth with Coppertone in 2021, both offline and online. This was particularly driven by successful launches of new products in the last year.
We have successfully complemented the acquisition and integration of the brand. Coppertone has gained a market share for the first time since 2012. We intend to build on the success in 2022. As part of these efforts, we have taken a number of important steps to strengthen Coppertone brand positioning. We realigned the portfolio, developed innovative products in the key applications areas of family and sport, revamped the packaging, and expanded digital consumer communications.
We also want to leverage our high level of R&D expertise at Coppertone to other brands. I would point to Eucerin Sun as one such example. We recently launched Eucerin in the sun category in the US. We introduced seven sun products that combine advanced sun protection and skin care benefits. In the face care category, for example, these include a product specifically designed for oily and acne-prone skin. Developed in collaboration with dermatologists, the products have clinically proven efficacy and benefit from Coppertone's extensive sun expertise. While our main focus in the US is the sun care business, we see significant growth potential in face care in the Asian market, especially in China, the world's largest face care market.
In recent years, we have succeeded in establishing ourselves in the premium segment with La Prairie and Eucerin, thanks overall to our skin care expertise. We are currently in the process of registering our patented active ingredient against hyperpigmentation in China. We hope this will make us the first company, after the introduction of China's new cosmetic regulation last year, to receive approval for the use of such an effective ingredient in a domestic market.
We are convinced that this will open up significant growth potential for us. Chinese consumers can currently order Eucerin and NIVEA with this active ingredient, W630, through a special cross-border e-commerce channel. We are receiving such positive feedback from consumers that we will expand the range of products in the NIVEA LUMINOUS630 series in 2022. These cross-border e-commerce channels currently covers only 10% of the total online market potential of this range. Once we receive the registration, we can expect a dynamic growth trajectory.
Our focus also includes the development of face care products for Chinese consumers that are specifically designed to meet their needs. In this connection, we have high expectations for our cooperation with the Tmall Innovation Center, TMIC, which began in 2020. TMIC helps brands develop new strategies and channels to reach the Chinese market.
In collaboration with TMIC, we have developed and launched a number of products in 2020 and 2021 that are specifically designed to meet the needs of Chinese consumers, for example, the NIVEA MEN Eye Gel and NIVEA Tone-up Cream. More than 10 additional products have already been agreed for 2022. In the years ahead, we want to accelerate our pace of innovation in closer cooperation with our external partners such as Tmall and thereby make Eucerin and NIVEA as successful as La Prairie in China.
That concludes our overview of Beiersdorf's most important development: our ambition to accelerate growth with selective skin care; to reinvent NIVEA as a global skin care brand; and to empower impactful skin care innovations with a special focus on the US and China.
At this point, I will shift back to Astrid who'll talk to you about the outlook for the current financial year.
Thank you, Vincent. In our last call, we gave you a high-level outlook for the year 2022, which already reflected rising input cost at that time. Since then, input costs have risen even more than forecasted. Raw materials, transportation and energy cost increased to new highs. At the same time, we continue to invest significantly in digital and sustainability, in line with the investment program introduced earlier. All these factors are reflected in our guidance for the current year.
We expect the Consumer Business Segment to reach mid-single-digit full year sales growth. Regarding operating profitability, we continue to aim at slightly improving our consumer EBIT margin for the full year 2022. While achieving this will be a significant challenge and will depend on the development of the market and commodity environment, we have specific plans to help us get there. One major contributor to this margin improvement will be consistent pricing action throughout all regions.
Another important factor for mitigating input cost inflation will be our brand channel and category mix. Further growth in the high-margin businesses of La Prairie, Derma and the sun category is essential. We will leverage additional potential for pursuing even more skin care and premium innovations.
In addition, we will work on operational efficiencies. tesa faces strong comparatives from an outstanding year 2021 on both the top as well as the bottom line. Nevertheless, we expect mid-single-digit full year sales growth. Looking at the margin development, 2022 will be a challenging year at tesa. We have seen significant input cost inflation as well as bottlenecks in the supply chain, affecting our results already in the second half of 2021 and going into this year. tesa will partially offset these factors with pricing actions.
Moreover, profitability will be affected by more investments in sustainability, innovation and digital. We, therefore, expect tesa's full year EBIT margin from ongoing operations to be noticeably below the previous year. On a combined basis for the group, we are calling for mid-single-digit growth and an EBIT margin from ongoing operations at the level of previous year.
I thank you for your attention, and hand back to Vincent for the closing remarks.
Thanks so much, Astrid. Ladies and gentlemen, looking back, 2021 was a very successful year for us, a year in which we made excellent progress in all areas of our C.A.R.E.+ strategy. We unlocked substantial new growth potential, primarily in selective skin care with La Prairie and Chantecaille. We outperformed the market in the face care area.
We enhanced our innovating capabilities through the creation of a global R&D network as well as through partnerships. We achieved all the milestones we define as part of the digital and sustainable transformation of our company, despite the many adverse circumstances that we face, particularly as a result of the corona pandemic and higher material and transport cost.
The fact that we managed to do all this is due, in particular, to our employees. I would therefore like to end my remarks by expressing my sincere gratitude to them. In an extraordinary year, they achieved results that were truly remarkable. It is thanks to their commitment, discipline and flexibility that we can look to the future with great confidence.
We thank you for listening. And we'd now be happy to answer any question you may have.
Well, these were the priorities for this year and the review of our full year figures 2021. At this time, we will begin the question-and-answer session. [Operator Instructions] Please remember that we have a maximum of two questions per caller. The first question is coming from Guillaume Delmas. Hello, Guillaume.
Good morning, Vincent, Astrid. So my two questions are, first, on your cost structure. Astrid, at the last conference call in November, you mentioned that you are expecting a low triple-digit basis points impact on your gross margin for Consumer from higher costs in the first half of 2022 and then some easing in the back half of the year. So could you provide maybe an update on this as I'm imagining things have changed since November? And still on the cost structure on A&P, if you could also tell us your level of A&P spend as a percentage of sales in 2021, and whether you are planning to increase A&P spend faster than sales this year?
And then my second question is more on 2022 for your Consumer division, 2022 should be another year of recovery based on the travel retail channel or for the sun care category. So maybe could you give us a sense on how the year has started for your travel retail operations? And for sun care, probably too early to say, but can you tell us how far below your 2019 levels you were with the NIVEA and Coppertone businesses last year? Thank you.
I think I'll take all of those questions. Guillaume, thank you so much. On the cost structure, yes, I did mention that we were at a low triple-digit impact and that we would see easing in the back half. As we presented to you, we did quite a good job managing the pressures in 2021 despite seeing a significant acceleration in the fourth quarter. In terms of this year, we do not currently expect an easing in the back half. We do think that this will be holding through the entire year and we now see a multiple of that triple-digit impact that I mentioned before.
In terms of A&P, our A&P spending increased by 30 basis points to 27.0% in 2021. This was primarily driven by digital investments we've made with a focus on skin care, also by investments in our Derma business, primarily focused behind the growth markets, US, Germany, Brazil, China and Russia. And in the fourth quarter, we didn't take a foot off the pedal in terms of investment. We really wanted to make sure that we supported the business and drove it into 2022.
In terms of your question on Consumer for this year, absolutely, we do think that assuming markets return to normal, there is significant potential for recovery. Obviously, travel retail as also Patrick talked about sun that you mentioned, but also other categories that were impacted, such as lip, men and so on, there is significant potential. We have started the year well, really well, actually, and we see a real acceleration of growth in Consumer for the first quarter. All brands are contributing to this growth with NIVEA and La Prairie actually accelerating the growth, while Derma and Healthcare are growing at a high level.
So we move on. You fine, Guillaume? We move on to the next caller, please. We have Iain Simpson on the line. Iain?
Good morning. Could we start with NIVEA, please? I'm looking at the Nielsen data. It looks like market share gain accelerated here towards the end of the year. You've said that, that started well. Could you give us a sense of exactly where the market share gains are coming from in NIVEA, whether by kind of category or country, what's driving the outperformance?
And then secondly, Chantecaille. You're clearly quite excited about the opportunity there. Could you perhaps give us a little bit of a sense of what you plan to do with it? Is it a case of doing stuff with the innovation or putting more money behind marketing or dropping it into your distribution platform? What do you see as the opportunities for Chantecaille that makes you sort of better owners for it? Thank you very much.
Thank you, Iain. I will take the first question, and Patrick will answer the question on Chantecaille. On NIVEA, we are overall gaining market share. And you saw that we grew at plus 5.5% last year. What is particularly important is the growth in face care. I mentioned, already in my speech, we grew in face care 10 times faster than the market versus 2019. And that's particularly strong in emerging market, has been the case over the year. But also since six months, we are overperforming the markets in Europe, which is, as you know, the most important part of the business.
And I can tell you also that in a country like Germany, I got yesterday the news that we got in January the best-ever market share of NIVEA. So that's giving us a lot of hope. What is also interesting is that while we are gaining market share on face care, while we are also gaining market share on sun care, we are also progressing on the core category of body and deo, which are obviously essential for the penetration of the brand.
Patrick, Chantecaille?
Yes. So indeed, we are very excited about the potential of Chantecaille. And we strongly believe that it offers a lot of opportunities in many different areas. And maybe to answer directly your question, we clearly see a lot of potential in terms of geographic footprint, but also in terms of distribution footprint. As I said earlier, they are excelling in e-commerce and we want to expand this expertise that they have in other part of the world. As I said, they have a presence mainly in North America and in Asia, and we want to expand this business in this region.
Of course, we want to support them, and I mentioned it quickly in my overview. They will be still a stand-alone business sitting into the overall Selective & Pharmacy branch division. They will be operated independently. However, we want to work on potential synergies with La Prairie and in some very specific areas like R&D, supply chain, or even production.
So we move on to the next caller. I can see we have Celine Pannuti on the line. Hello, Celine. Next should be Celine.
Yes. Thank you very much. Good morning, everyone. So my first question is on China. Can you tell us what was the growth in China in 2021? And whether you've also experienced a slowdown in the fourth quarter? And what is your outlook for 2022 for the market? But it seems that you have a lot of activity, so would like to understand how you see your performance versus maybe a slower market in 2022 there.
And my second question is trying to understand the bridge. Astrid, you provided 30-basis point pricing benefit in 2021. What should we expect for 2022? And equally for the mix, which was a 40-basis point benefit to gross margin in 2021, how much catch-up we still have to do from what you mentioned in terms of recovery of travel retail, La Prairie, and sun to understand that? And just, sorry, on pricing, if you could talk about how your pricing negotiation are happening, that will be useful? Thank you so much.
Thank you, Celine. I will take the first question on China, but perhaps will also ask Patrick to add some color on La Prairie. Celine, in China, we grew in 2021 by 30%; three, zero. So a very, very strong performance on all our brands. So not only La Prairie, and Patrick will talk about the figures, but also on Eucerin and NIVEA.
You might remember that we launched Eucerin three years ago. It was the fourth attempt to launch Eucerin and very good news that we are overperforming the market. We are absolutely now in line with our business plan. We gained last year, for example, more than 500,000 new users. Big success of Thiamidol, mainly on cross-border, and this is where the potential registration of Thiamidol in local China will be a huge game changer. So overall, plus 30%.
Patrick, on La Prairie, we're also extremely happy with China.
Yeah, absolutely. Maybe I can split the China topic in two distinct topics. One is Mainland China, obviously, where we are performing extremely well and much faster than the market and the competition. I can give you some numbers to give you a flavor, but we grew by over 30% in 2021 versus 2020, and we are even at a pace of over 70% versus the year 2019. This is mainly driven by the opening of boutiques, but again, very selectively. As you know, we have a very selective distribution. We remain extremely scarce, let's say, in our distribution even in Mainland China.
And of course, thanks to Tmall, that was a real growth provider and allowing us to reach out to new consumers. We managed to increase our client base by around 10% in China only through Tmall. And it also allowed us to target younger consumers because we noticed that the consumers going on Tmall are three to four years younger than the average consumer group that we have in China.
And then the second bucket of China is, of course, the travel retail China. No need to tell you that Hainan for us is booming, but also travel retail China in general, and I'm thinking of the airports like Shanghai or Beijing. So there also very impressive growth. We even doubled our business in 2021 versus 2020.
And to conclude your question, Celine, the prospect for 2022, we are extremely optimistic. Obviously, on the Eucerin, NIVEA, we have a lot of things to do. But I can share with you, Patrick, that we saw, for example, in January, that we tripled our business in Hainan with La Prairie. So absolutely no slowdown. And on contrary, a very hope – a lot of hope, also including Chantecaille in China for 2022. Astrid?
Celine, on your question related to the margin bridge. So the pricing impact shown there, of course, was the impact on margin, not on sales growth. The impact on sales growth would have been a multiple of that number. And we are expecting that to accelerate in 2022. As I mentioned both in my speech as well as in replies previously, we are trying to really accelerate pricing in all regions, whereas this year – or in 2021, we took pricing primarily in emerging markets as well as our beyond businesses, La Prairie, Derma and Healthcare, we are looking to take pricing globally this year and likely in two rounds. So we should see a significant acceleration of that both in the first half as well as in the second.
In terms of mix, similarly to what I just replied to Guillaume, there should be significant upside to mix and we are planning for that. It does depend somewhat on the recovery of, let's say, the COVID-related impacted categories, travel, retail, sun, lip, men and so on. But we do think we have some significant opportunity on mix as well still in 2022. And then pricing negotiations are going well. They're always tough, of course, but they're going well. We don't foresee currently any challenges there.
Okay. So we move on to the next caller. I can see here Bruno Monteyne. Good morning, Bruno.
Good morning, everybody. Just one more remaining question. If I look at the two-year sort of growth CAGR [ph] first (00:50:05) 2019 to take out the noise from COVID, the last three quarters that are sequentially slowing down every single quarter, and so there doesn't seem to be a sort of ramp-up or sort of further acceleration in growth. Is there any reason for that? And then sort of what gives you the confidence that you sort of will be back up to 5% or mid-single digits for 2022? Is that largely on the back of pricing or is there anything else that we should look forward to in 2022?
So while the comparisons, obviously, in the fourth quarter in the back half period versus 2022 become just more challenging, we are very happy with the development of our business. We did mention that NIVEA was impacted in the fourth quarter by COVID-related lockdowns still in many parts of the world, including in emerging markets, in Europe and in Japan. We did see very, very strong dynamics from the rest of the business, double-digit growth in Healthcare and Derma. Very strong growth in La Prairie. As we mentioned, versus 2019, we're talking about 30% growth. So we do think we have good momentum and even stronger acceleration into Q1.
So next in our line I have Olivier Nicolai. Olivier, hello.
Hi. Good morning, Vincent, Astrid and Patrick. Just got a couple of questions, please. First, a follow-up of the La Prairie brand, which has a very strong growth in Q4. You gave us some indication about the trend in China, but can you give us an idea of the underlying demand for La Prairie in Europe and in the US?
And then just secondly on NIVEA [indiscernible] (00:51:52) for 2022. We obviously hear a lot about consumer disposable income in Europe or in the US becoming under pressure because of inflation. Are you concerned that it could have an impact on NIVEA's demand? Thank you.
Patrick will take the first question. I will take the second one.
Yes. So concerning the underlying demand, so first of all, I want to give you another number concerning the Q4. You have seen the net sales growth of 6%. But I would like also to mention to you that a very important indicator for us is the sellout figures. And we have seen sellout figures or retail sales if you want of above 20% in the fourth quarter of 2021. Obviously, this still relate a lot to China and to travel retail. But we had also very nice growth in the United States. So we ended the year also with a double-digit growth, above 20% in the United States, so showing really an acceleration of the sellout figures in the United States.
In Europe, it's still a mixed bag of figures, especially that the first half was still impacted by the COVID, to a still reopening lockdown and so forth. But we start to see an acceleration, of course, on a much lower basis in Europe in the last quarter and as well now at the beginning of this year.
Olivier, on your question on NIVEA. Yes, you're absolutely right, for a brand like NIVEA, which is really the value-for-money brand, we might feel we might face some issue when we increase prices. What is very interesting, in fact, is that, first, we didn't see any elasticity, which is a good news. And the second good news is that, as I mentioned, the best-ever launch of NIVEA is LUMINOUS630. This is also the highest ever consumer price we positioned in the market.
We are selling LUMINOUS630 for around €20, which is 4 times the price you could find for a basic moisturizer of NIVEA and we saw absolutely zero issues. So we are, as Astrid was saying, we are running price increase. We are doing that, obviously, not on a one-size-fits-all approach. But we believe that especially in those new categories which are the priority for the brand, face care, sun care, we have some opportunity to increase our penetration despite increased prices.
So we move on to Deutsche Bank and Tom Sykes. Hello, Tom.
Yeah. Good morning. Morning, everybody. Firstly, just on Derma, please. You did say that, that was driving a lot of your e-com sales. Could you just remind us how much of your Derma business is in e-com and what channels and perhaps what geographies are particularly driving the e-commerce at the moment? Obviously, you highlighted the opportunity in China.
And then, just you seem to draw the sort of the link in some of your mass products between increasing the sustainability credentials and then driving the growth there. So I just wondered where you had sort of increased sustainability credentials and then putting the green slash on the product or something. What sort of uplift or in sales or share that you've seen in some of those mass products when you had done that, please?
Patrick will take the first question.
Yes. Very good. So I mean Eucerin is the brand with the highest share of e-commerce within the portfolio of our brands, very close to La Prairie. So it's above 20% share in e-commerce, so very strong. And this is coming mainly from two key markets. In fact, this is, on one side, the United States and on the other side, China, where we have excellent results in terms of e-commerce, and of course, through the usual platforms like Tmall on one side, Amazon on the other one, but also through the retailers. So this is to answer your question on e-commerce for Eucerin.
A very good question on sustainability. What is interesting, it's to see indeed the impact on purchase. We have a very good example, which is close to my heart, which is France, a difficult country for NIVEA. We had a very good success with this range I was mentioning in my speech, which is Naturally Good, where we have in the [indiscernible] (00:56:20), which is extremely key in France, which has green – which is green.
And this is one of the best launch we have ever done in France. We clearly saw that the new target consumers, so younger target, was interested in this product, which is a range which is on multiple categories, face care, body, deodorants, shower. We saw clearly the interest of consumers, and we saw that being green on this app was essential. This is why also we are being courageous enough to change our number one product, NIVEA Soft, and to come with a renewed formula, which is much more sustainable, changing some critical ingredients, also working on the plastic, working on all the elements of the product.
And we feel that we'll not only keep our existing consumers, which is essential for a core SKU like this one, but also recruit new consumers. I could also mention the MagicBAR that we have launched. And also, we see clearly, especially for the young targets, especially for Europe, that this appeal for sustainable products is really bringing a lot of new consumers and much better equity to the NIVEA brand.
Next on line would be Emma of Royal Bank of Canada. Emma, please go ahead.
Hi. Morning, everyone. You mentioned Russia was one of the biggest contributors to your growth in Eastern Europe in 2021. So I'm wondering how big is Russia for you? It's about 3% to 4% of group sales, would that be about right? And what growth rate are you assuming in your sales guidance for [ph] this region (00:57:55)?
And then my second question is that how are you feeling about prioritizing meeting that guidance for margin improvement in your Consumer Business. If the macro environment deteriorates, are you concerned that this might constrain your ability to make the necessary investments behind your brand? Thank you.
Astrid, do you want to take the questions?
Sure. In terms of Russia, as a percent of our business, actually Russia and Ukraine, let's take that together, but it's not a material part of our financial results. It reflects less than 3% of the top line and less so on the bottom line. Therefore, we are at the moment in terms of pure business results, less concerned. Obviously, very much concerned with our employees on the ground and making sure that they are safe.
In terms of your question on advertising and margin guidance, we obviously look to continue to support our business strongly. We've talked about the innovations that we have and what we're trying to achieve. So clearly, that also requires the right advertising. At the same time, as we have continued to expand where we do advertising, on which digital platforms, precision marketing and so on, we also have opportunities to streamline and create more effective advertising than maybe in the past. So it'll be a good mixture, and we will keep that quite flexible to ensure that we drive business.
So we move on to Société Générale, David Hayes. David, good morning.
Good morning, all. Thank you. So my two questions, one on operational efficiencies and one on the new NIVEA head. So just on the operational efficiencies, I think you talked about having operational efficiencies in the plan in terms of margin delivery. I just wonder whether you can quantify that or is that just a generic sort of comment in terms of being focused on cost, generally?
And then the second one on the head of NIVEA. You've obviously deployed an external hire in the last few months. So a question there, why external? And what are the objectives that are being laid out for the new hire in terms of taking NIVEA forward? What might be different with NIVEA under that new leadership? Thank you so much.
David, I will take your first question and then I think Vincent you will take the second one. On operational efficiencies, we have both concrete plans on what we will drive. I will not at the moment share obviously the exact impact for you. But there are concrete plans. At the same time, we will also continue to look everywhere as obviously the very uncertain volatile environment requires us to do so.
On your question on NIVEA, David, important to know that Patrick, my neighbor, was the last promotion to the board, has been 27 years with the company. I could mention also our Head of R&D, Gitta Neufang, [ph] after (01:00:54) being with the company for 17 years. But indeed also, we recruited Oswald Barckhahn, in charge of Europe and North America; and Grita Loebsack, in charge of NIVEA brand. Grita has been managing the skin care global business of our top two competitors. She's German, and she has a very respected expertise in skin care. So the mandate is pretty clear, and I mentioned that in my speech, we want to, not develop, we want to reinvent NIVEA as a global skin care.
I am convinced that the future of the brand and the path of the brand is much more in skin care, in face care than in, for example, personal care. So the mandate of Grita is to drive this transformation of NIVEA into the leading skin care company to have a much stronger drive on the business. She's not a CMO. She's a President of NIVEA, which means that she has the last word regarding any kind of NIVEA activity in the world. She has a very strong digital savviness and we are already implementing her first thoughts on how to be even more aggressive digitally. So she is – really be the one transforming NIVEA with the full support of the board.
Okay. So next, I can see we have Karel Zoete, Kepler. Karel, good morning.
Good morning, all. Thanks for taking the questions. I've two questions. The first one is basically a follow-up on the last one. You seem to get a more centralized approach with regards to your brands, and NIVEA, in particular. What does this mean for the organization and, for example, for the go-to-market model more locally?
And the second question is on the growth outlook provided for Consumer. You sound upbeat on the momentum in skin care. There's still more pricing coming and there's an Asian comparison base in sun and in travel still in H1. So why just mid-single-digit growth? What is dragging the growth down, if you like? Those are the two questions. Thanks. [ph]
Thank you (01:03:07) for the questions. I will take the first one, and thank you so much for asking it. The interesting thing with NIVEA, we used to have 100 CMOs. So everybody in the country is reinventing the wheel and adapting the global launches to their all local consumers but not in a very scientific way.
I think together with – and you're absolutely right, the stronger centralization of decision-making, we are also defining better the roles and responsibilities. We are asking the countries to activate, to be winning on the market, to spend their time meeting retailers, driving the brand into the stores, being sure so that they report consumer insight together with the globalization of marketing.
We are also creating center of excellence in the US, in Korea, in France, in Brazil, in Thailand in order to be sure that we have also these insights coming from the country. But I think it's really about defining properly who is doing what in the company with what's been perhaps a little bit too much decentralized in the past.
Astrid, you want to take the second question?
Sure. Thank you, Karel. I think you've captured our growth drivers quite well. They are the ones that we're absolutely driving. And now that could lead to more than mid-single-digit growth. And certainly, our ambition is to drive as much growth as we can. At the same time, we have highlighted that we continue to live in a very volatile world and that's primarily also the impact of that. We need to see how it goes. Our ambition is to grow certainly above market.
So next in line we have Berenberg. Hello, Fulvio. Good morning.
Yes. Good morning. Thank you for taking my questions. I just have two quick ones. The first one is on the €300 million investment that you announced 12 months ago. Can you tell us how much of this was spent in 2021 and how much is included in the guidance of 2022? And then also, apologies if I missed this, but anything you can say in terms of CapEx spend for 2022 and beyond, please? Thank you.
Astrid?
So both of those go to me. Thank you so much. So as we announced in February 2021, this €300 million investment behind digitalization, sustainability, and growth markets, we at that time announced that it will be front-loaded investment, essentially more so in the first two parts of the – or two first years of that five-year period, and that we have been executing. We did spend a double-digit million amount in 2021 and expect to spend the same or a similar amount in 2022, though, we will keep that flexible as well.
For CapEx, we did have one of our strongest year in terms of CapEx in 2021, actually, the strongest year in the group history. We spent more than €400 million on CapEx, really driving our manufacturing logistic network. And that was up €133 million versus the previous figure. And we continue to be quite ambitious about investing in CapEx. As you know, we have our manufacturing footprint investment and the high of that will be now in 2022. We will see then also benefits from that in coming years in terms of costs.
I can see that Redburn is next with Chris Pitcher. Hello, Chris.
Hello, there. Thank you for the questions. A couple from me. Firstly on tesa, could you give us a sense for what happened in costs and the margin performance in 2021? And when you talk about a down margin this year, are we talking a sort of return to 2020 levels? And within that, could you explain some of the benefits you expect to come from the governance changes you discussed? You mentioned a dedicated management unit. Does this mean we could expect perhaps more acquisition capital to be allocated to tesa?
And then secondly, an encouraging performance on margins and on the outlook. I haven't had the chance to read the annual report yet, but have margins and cash flow become embedded in long-term remuneration yet or just to understand how the look is longer term on that? Thank you.
Chris, I will take your question on tesa. And there were quite a few questions actually hidden within that, but let me explain it as follows. 2021 saw a significant increase in cost for tesa in the back half. Similarly to what we've experienced in Consumer as well, tesa was partially able to offset that through pricing, but did feel the effect of that very clearly.
In terms of versus 2020, our margin guidance does not go down to that level. We are more ambitious than that for 2020, but we are, as we're saying, tesa will be impacted by material costs and the investments in 2022.
And in terms of governance and the related acquisition, tesa, similarly to Consumer, is looking obviously for the right acquisition targets that fit from a strategic and financial perspective, and we're absolutely open to that.
In terms of remuneration, Vincent?
Yeah. I will take this question. The board has a long-term remuneration, which is a plan 2021/2024, which is really split into two big areas. One is performance, so net sales, market share, and delivering the EBIT. And the second one, which is the transformation of the company, with four big buckets. The first one is digitalization with very precise KPI, white spaces with a focus on China, US emerging markets. Sustainability, we have very important milestones to deliver. This is one of them being, for example, the transformation of NIVEA Soft. And last but not the least, also, diversity. As you might know, we have the pledge, the engagement of having 50% of our management position occupied by female leaders by 2025.
So next in our line here would be Stifel, Rogerio. Hello?
Hello. Good morning. And thanks for taking my questions. I have two follow-ups on La Prairie. First of all, just wondering if you could talk about the magnitude of the global price increase taken at the end of last year for La Prairie.
And the second is I was wondering if you could elaborate on the market growth momentum that you see in China looking at Jan and February together given that the earlier timing of Chinese New Year obviously [ph] flatter (01:09:55) the January numbers.
And actually, if I could squeeze a quick third on La Prairie. How does the planned space contribution for La Prairie from selective openings this year compares to 2021, i.e., should we expect a similar contribution from space for top line for La Prairie this year? Thank you.
Sorry. May I ask you to repeat the second question? I didn't get it on China, if you don't mind.
Just talk a little bit about the market growth momentum in China because I think January was strong because of the earlier Chinese New Year obviously helps January. But if you could talk about Jan and February combined, it will be great. Thank you.
Good. Let me start in the opposite orders of your questions, so let me start with the opening of distribution. In fact, when we talk about opening of doors, we are always talking about very low-digit opening. So as you know, we probably opened last year in 2021, close to 10 doors and not more. And we intend as well probably in 2022 to also go in the area of 10 doors. And again, mainly in the countries or the channels that are really booming like Hainan or like Mainland China.
In terms of trend in the market in China, you're absolutely right that January was very positively impacted also by the Chinese New Year. We see a lesser growth in February, but we see a pickup again in the last week of February. So no signs that the market is cooling down. So still having some nice high single-digit growth. And very interestingly, we are trending, of course, by far, beyond this market trend.
In terms of magnitude of the price increase, so we will continue our usual price increase. Obviously, I cannot communicate in detail of this. But this is something every year we act upon very carefully, and we continue to increase the price depending on the external factors.
Okay. So we have the last caller. We have Pinar Ergun of Morgan Stanley. Pinar, good morning.
Good morning. Thanks for taking my question. A follow-up on NIVEA, please. You've talked about the impressive improvements of face care. How do you think about the rest? When can we get to a point with all categories powering ahead in NIVEA?
And then a second one on cash. Very strong working capital improvement this year. Do you view this new level as sustainable? And how is the company's thinking on cash use is evolving? Thank you.
Thank you for your questions. Not all categories are priority for NIVEA. I mentioned face care, this is by far the most important category. And even within face care, I would mention, the – even skin category is LUMINOUS630 and the anti-age category where we are growing 12 times faster than the market. We have also as a key priority, sun care and body care. Sun care, we gained market share on NIVEA. We have also the fantastic success of Coppertone. This is clearly a priority for NIVEA, and the year is starting very well.
But we have also the body market. Body is our penetration market, and we have the relaunch of some iconic products and the all-purpose cream, as I was mentioning, but also some relaunch on Naturally Good.
What is also important for us is deodorants. This is a business which is particularly important in emerging market and particularly in country like Brazil. As I said, we managed to gain market share despite the fact that clearly the investment was much more on face care than on deodorant, proving the strength of the brand. And it's true that the new innovation, the sustainable innovation will help us maintaining this kind of market share.
What is less a priority is categories like shower, like soaps, where we have a few local businesses where we maintain the sales, but this is clearly not an area where we have a strong opportunity to win. And this is not where we want to develop the NIVEA brand in the future.
In terms of your question on cash and working capital. So on working capital, obviously, we're very excited about the strong results we've achieved. We do want to hold or improve those. But let me be a little bit more specific there. We absolutely want to hold and improve strong level in terms of days sales and days payables outstanding.
In terms of inventory, we will manage that quite flexibly to ensure that we have very strong supply. We might want to, depending on the situation and the market, increase our inventory to be very reactive and be able to service our customers and consumers.
In terms of cash use, we're obviously very happy about the acquisition of Chantecaille and think that was a very good move forward. And we will continue to look for other opportunities as well.
Okay. This concludes our Q&A session. Thank you for having joined our conference call. We appreciate your interest in Beiersdorf. So thank you and good-bye.