Beiersdorf Q3 Group Sales Edge Down On Weak Nivea Sales; Cuts FY25 Organic Sales Growth View

(RTTNews) - Beiersdorf AG (BDRFY.PK, BDRFF.PK), a German consumer goods maker and the owner of Nivea, reported Thursday a slightly lower sales in its third quarter, hurt mainly by weak sales in Nivea, despite good growth in Derma brand and Europe.

Looking ahead for fiscal 2025, Beiersdorf said it has adjusted guidance to reflect the slower market environment in the third quarter, mainly a further deceleration of the skin care market especially in emerging markets.

Total sales in the third quarter were 2.35 billion euros, a drop of 0.9 percent from last year, but a growth of 1.7 percent organically.

Europe sales grew 1.3 percent year-over-year to 1.03 billion euros, while sales in Americas fell 2.8 percent to 607 million euros and Africa/Asia/Australia sales dropped 2.5 percent to 710 million euros.

In consumer sales by brand, NIVEA sales including Labello fell 2.6 percent on a reported basis and 0.4 percent organically from last year to 1.31 billion euros.

Derma sales grew 8.9 percent year-over-year to 355 million euros and Health Care sales increased 6.4 percent to 76 million euros. Meanwhile, La Prairie luxury brand sales fell 1.3 percent to 106 million euros.

In the nine months, Group sales reached 7.54 billion euros, down 0.1 percent on a reported basis, but up 2 percent organically, driven mainly by strong Europe and Derma results.

NIVEA recorded organic sales growth of 0.6 percent, reflecting a continued slowdown in the mass market, especially in Latin America and Eastern Europe.

Vincent Warnery, CEO of Beiersdorf, said, "We are pleased to see the outstanding performance of our derma business. It proves that we can continue to outperform the competition and deliver double-digit growth. For NIVEA, we are taking decisive action to refuel growth in a challenging market. .. Our strategy for NIVEA remains on track."

Looking ahead for fiscal 2025, Beiersdorf now expects Group organic sales growth to be around 2.5 percent. The company previously expected Group organic sales growth of around 3 percent.

Further, the company continues to expect adjusted Group EBIT margin from ongoing operations slightly above the previous year's level of 13.9 percent.

For the Consumer Business Segment, Beiersdorf now expects organic sales growth of around 2.5 percent. The adjusted EBIT margin from ongoing operations is expected to increase by 20 basis points compared to the previous year's level of 13.4 percent.

For the tesa Business Segment, the company continues to expect organic sales growth in the range of 1-3 percent and an EBIT margin from ongoing operations (excluding special factors) of around 16 percent.

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