Hamburg sells stake in Beiersdorf despite strong sales growth

By Staff Reporter

- Last updated on GMT

Related tags Germany Beiersdorf

The City of Hamburg has announced this week that it will sell its
stake in leading cosmetics manufacturer, Beiersdorf. However, the
shares will remain within Germany to counteract job losses and
ensure it remains a Hamburg based company.

The Deutch Bank is representing the City of Hamburg in the sale and has said that it will sell its 10 per cent stake in the company, bought in 2003, for an estimated €1.21 bn based on an accelerated bookbuilding process.

The sale comes at an unlikely time, with Beiersdorf having just announced that its overall operating earnings for 2006 rose to €590 m, an 11 per cent increase from the like for like period in 2005. Group sales were up 7.2 per cent to a record €5.1 bn from €4.7 bn last year.

However, Hamburg's finance minister Michael Freytag told the Financial Times Deutchland that it had always intended to sell its stake in the company. Therefore the news does not follow reports from industry insiders that the company has not preformed as well as expected, despite the high sales growth.

"In the meantime, all our goals have been attained. Beiersdorf remains a Hamburg company and the threat of job losses has been fended off,"​ Freytag was quoted as saying.

Beiersdorf, manufacturers of Nivea skin care, took major steps last year in order to cement its position as industry leader in the cosmetics market, including the announcement in July 2006 that it was putting up for sale a soap production facility in Hirtler, Germany. The move put 93 jobs in the balance but the company said that it was hoping another personal care company would buy up the facility and retain the staff.

This followed news in March this year that the company was considering the possible closure of manufacturing facilities in Sweden, Belgium and the Netherlands, with the potential loss of 400 jobs.

Therefore the decision to sell to German investors in an attempt to reduce further job losses will no doubt come as welcome news to the company.

Beiersdorf is hoping to further consolidate its industry position in 2007, with Thomas Quaas, executive board chairman, stating that the company is looking to build on both its sales and EBIT margins during the course of the coming financial year.

As a result he has underlined three core areas that will be given special attention in the future, including increasing critical consumers, competing against increasingly aggressive competition and the area of private labels.

Related topics Skin Care Color Cosmetics

Related news

Show more

Related products

show more

Innovation Sensations: The New Roaring Twenties

Innovation Sensations: The New Roaring Twenties

Accupac | 01-Mar-2023 | Technical / White Paper

It may be difficult to envision a post-pandemic consumer market, but beauty care is poised to experience a surge of growth and innovation not seen in some...

Breaking Into Darker Skin Cosmetics

Breaking Into Darker Skin Cosmetics

Tagra Biotechnologies | 21-Feb-2023 | Product Brochure

DeeperCaps™ provide increased formula stability for cosmetic manufacturers. The innovative microencapsulation technology prevents pigment mixing and capsules...

Gentle skin exfoliation with Glucono-delta-Lactone

Gentle skin exfoliation with Glucono-delta-Lactone

Jungbunzlauer | 14-Nov-2022 | Clinical Study

Jungbunzlauer’s glucono-delta-lactone (GdL) is a polyhydroxy acid known as a mild, effective exfoliating agent. Its beneficial impact was proven in a four-week...

Related suppliers

Follow us


View more