Modest Margin Upside in Beiersdorf’s Q4 2021 but Cost Inflation Looms

Beiersdorf reported respectable fourth-quarter and full-year 2021 results, with sales bang in line with our estimates, but both gross and EBIT margins slightly better than we had expected. We are making very minor changes to our forecasts, lowering our earnings forecast for next year slightly, on the expectation of continued cost inflation, but we are retaining our EUR 94 fair value estimate. Although Beiersdorf looks close to being fairly valued, it is quite rare that the stock trades below our fair value estimate, as it usually trades at multiples well above its peers due to its healthy balance sheet.