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01 Mar 2022
FY21 results and 15 questions for management
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FY21 results and 15 questions for management
Beiersdorf AG (BEI:ETR) | 0 0 0.0%
- Published:
01 Mar 2022 -
Author:
Omanadze Mikheil MO | Stent Jeff JS | Karia Vyoma VK -
Pages:
16
Summary of Q4/FY21 results
While Q421 LFL came in slightly ahead of consensus expectations and FY21 earnings were broadly in-line, the main focus of the release was on FY22 margin guidance. On that front, Beiersdorf guided for group margin around the FY21 level (13.0%) vs. slight EBIT margin growth guided at the Q321 stage. In light of the recent margin warnings in the HPC space, there was some level of nervousness around Beiersdorf''s FY22 margin outlook, and hence we believe that today''s guidance was a relief.
News
Beiersdorf commented that 2022 started very well in Consumer, with the segment seeing acceleration of growth in Q122, with both Nivea and La Prairie accelerating growth of the division.
Earnings
We reduce our EPS estimates by c.1% in FY22e and maintain them broadly unchanged in FY23e/24e.
Investment thesis
We believe that Beiersdorf offers a good organic growth profile and will likely see two years of above-par LFL growth. Coupling this with the new management team and an increased possibility of the balance sheet being used, we see attraction in the shares.
Rating and target price
We maintain our Outperform rating. Our target prices remain unchanged at EUR115.
15 questions for management
Can you please specify how much of Consumer growth in Western Europe in Q4 was driven by the recovery of travel retail at La Prairie?