(Reuters) -German consumer goods maker Beiersdorf, the first European large-cap global health and personal care company to report first-quarter results, on Tuesday posted group sales marginally ahead of market expectations.
Analysts at Bernstein said the results were “surprisingly robust,” as the company’s sales rose 3.6% organically to 2.69 billion euros ($3.05 billion), compared to analysts’ expectations of 2.65 billion euros as per data compiled by LSEG.
Sales of its derma division brands jumped 11.4%, led by emerging markets and North America.
Of the group’s products sold in the U.S., 65% are made outside the country, primarily in Mexico, which CEO Vincent Warnery in a call stressed was covered by free trade agreements, meaning only a small part of European imports would be subject to tariffs.
Asked whether the company might consider moving more production to the U.S., finance chief Astrid Hermann said it was difficult to make decisions about production in an uncertain environment.
“In the very short term, to make changes there, I don’t think makes sense,” Hermann said.
Sales of Nivea, the company’s flagship skin and body care brand, grew 2.5% organically, against a tough basis for comparison due to high sales in the first quarter of 2024 and the company’s measures to clean up its portfolio in China.
On the other hand, the company reported a 17.5% drop in sales of luxury brand La Prairie, due to a difficult market environment in China.
Speaking about consumer sentiment in China, Warnery said he saw “no big evolution of the consumer feeling, which means it’s not better, but it’s not worse.”
($1 = 0.8807 euros)
(Reporting by Matthias Inverardi, Bernadette Hogg and Paolo Laudani; Editing by Varun H K)
