COVID-19 Impact on Beiersdorf, H2 2020 Update

Summary

COVID-19 Impact on Beiersdorf, H2 2020 Update key findings as of August 24th, 2020 based on market analysis and brand diversification by industry and geography.

Beiersdorf's strong image and focus on essential items puts it in at an advantage over other companies in the face of the pandemic. Its R&D focus on the development of innovative ideas and products to meet the changing market trends and consumer requirements will also help it to overcome the present adverse conditions. Furthermore, the easing of restrictions in Western Europe markets may offer some benefits as Beiersdorf has a major presence in the region.

Scope

• Beiersdorf is trying to adhere to changing consumer demand amid the pandemic, which may provide some protection against the brand's declining sales
• Beiersdorf's geographical diversity should help mitigate losses suffered during the first half of 2020
• Skincare and personal hygiene sectors are expected to be the most impacted in 2020
• With the OTC healthcare business accounting for a small value share of Beiersdorf's sales, it is not expected to have a significant impact on its performance

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