The Working Party on Equity Indices announced on Wednesday that Beiersdorf would switch up from the MDAX to DAX on December 22.
The maker of Nivea cosmetics will replace Hannover-based Continental as the shares in the latter were judged to “no longer meet the criteria in terms of market capitalization to remain in the DAX index”.
Decision reflects recent success
The decision to recommend Beiersdorf for the promotion to the index of the top 30 listed firms in Germany reflects the recent success the company has enjoyed.
Between 1998 and 2007, the beauty and skin care company has seen sales increase from €3.3bn to €5.5bn, driven largely by the expansion of the Nivea brand.
Beiersdorf CEO Thomas-B Quaas said: “We are naturally delighted that we are now one of the 30 leading listed companies in Germany.
“In recent years, we have turned NIVEA into the global number one on the market for skin and beauty care. And we are confident that we shall continue to outperform the market.”
Beiersdorf plans to keep growing
Beiersdorf plans to continue on a high growth path by focusing its efforts on the beauty and skin care markets. To this end, the company is selling off brands that lie on the peripheries of its business such as health support firm Futuro, which was sold to 3M earlier in the month.
By focusing on the core of the business Beiersdorf aims to capture a 5.5 per cent slice of the global market for personal care products by 2010.
Focusing on emerging markets such China, India, Brazil and Eastern Europe will be central to this strategy.
In Beiersdorf's financial results for the nine months ending September, 30, emerging markets led the way as the company reported an 8.5 percent increase in sales.
Sales for Africa, Asia and Australia grew 32.7 per cent even after accounting for the positive effects currency had on the figures.