Beiersdorf’s share price has plunged after lowering its sales forecast for the year due to “more difficult market challenges” in the second half.
The personal care giant’s stock tumbled by as much as 12% in early trading on the German stock exchange on Wednesday (6 August), as it warned of lower growth due to economic uncertainty, cautious consumer spending and tariff unpredictability.
Organic sales growth for the full 2025 financial year in its consumer business, which includes Nivea, Eucerin and Coppertone, is expected to be between 3% and 4% – down from the 4% to 6% previously expected.
EBIT margin is expected to increase by 20 basis points above the previous year’s levels of 13.4%, a reduction from the 50 basis points the company had previously forecast.
Overall, the business expects sales of around 3%, with forecasts for its Tesa business unchanged.
The company said in a statement that the downgrade was due to “the challenges and volatile developments in large areas of the world” which are “causing a high degree of uncertainty in the markets”.
The downgraded outlook came in Beiersdorf’s latest financial results, which showed organic sales growth for the group of 2.1% to €5.2bn in the first half of the year.
Consumer business sales hit €4.3bn, up 1.9%, driven mainly by double-digit growth in the derma segments and “breakthrough innovations” across all regions.
Mass market growth was slower than expected in the first half of the year “due to broader economic uncertainties," the company said.
Nivea showed “modest performance in slower markets and against strong prior-year comparison”, the company said.
The brand’s sales grew 1% organically and declined 1.2% nominally to €2.9m.
In luxury, La Priarie’s sales fell 10.7% organically and 10.8% nominally in the first half to €243m.
However, the second quarter “showed encouraging dynamics” with organic sales growth down by only 1.5%, with 3% growth in China driven by its ecommerce business, which grew sales by 36%.
Chantecaille delivered “outstanding double-digit sales growth of 16.1%”.
Derma brands Eucerin and Aquaphor continued to outperform the market “in a slower-growing derma market, which underscores the strength of Beiersdorf’s innovation pipeline”.
Organic sales in the derma business grew 12.2% organically and 10.5% nominally to €790m.
Beiersdorf said that it expects its innovation pipeline to accelerate growth in the second half, however, and it will not reduce its marketing spend “to ensure continued investments in the upcoming strategic launches”.
This includes the launch of Nivea Epigenetics Serum with Epicelline, which is expected to boost sales.
“In the first half of 2025, Beiersdorf delivered a solid performance,” said Vincent Warnery, CEO of Beiersdorf.
“However, the global skin care market experienced a slower growth than expected, particularly in the second quarter and into July 2025.
“This is why we adjusted our guidance for the group and the consumer business segment for the full year of 2025.
“Nevertheless, we expect to accelerate growth in the second half driven by our strong innovation pipeline.
“Validated by the successful performance of Epicelline in our Eucerin brand, the launch of the Nivea Epigenetics Serum is expected to contribute significantly to our business in the second half of 2025 and bring Nivea back to its stronger growth path.”
Recently launched product ranges such as Nivea Luminous630 Skin Glow and Derma Control antiperspirant are also expected to boost sales in the latter half of the year.
On a call with investors, Warnery said that in addition to the mass market slowdown, former growth drivers have “slowed significantly” – particularly emerging markets and Eastern Europe – “with market value growth moving from double digit to mid-single digit, and volume growth in emerging markets declining from mid-single digit to nearly zero”.
“This was due to economic uncertainties and more cautious consumer spending,” he added.
“The unpredictable nature of US tariffs has been adding further uncertainty.”
Related content:
- Il Makiage owner Oddity raises full-year outlook as Q2 results deliver
- Laneige helps boost Amorepacific sales growth in second quarter
- Unilever’s turnover for first half 2025 down 3.2% with subdued growth in beauty
- Kering sales plummet as Creed fragrances shore up ailing luxury demand
- Procter & Gamble confirm US price hikes due to tariffs and names new CEO
- L’Oréal sales buoyed by China and hair care but miss analyst expectations
- LVMH’s downturn in revenues shored up by beauty and Sephora