By Matthias Inverardi, Elizaveta Gladun and Linda Pasquini
(Reuters) -Nivea maker Beiersdorf on Thursday reported higher 2024 sales and said it expected sales to still grow in the current year, albeit at a slower pace, amid weaker demand in the global skin care market.
Beauty firms are reeling from a growth slowdown from the second half of 2024 and into the new year, exacerbated by soft demand in key market China and inventory reductions at travel retailers and in the U.S.
Shares in the company rose 3.3% to 131.3 euros at 1140 GMT, helped by what analysts at JPMorgan said was “a reassuring message on growth momentum amid weakness elsewhere in the beauty sector.”
Beiersdorf core skincare brands like Nivea and Eucerin and a minor exposure to the Chinese market compared to peers allowed the German company to remain resilient.
It expects organic sales to grow between 4% and 6% in 2025, down from a 6.5% rise to 9.9 billion euros ($10.37 billion) it reported for the previous year.
While sales at its Nivea brand and skincare business increased 9.0% and 10.6% respectively in the past year, its China-exposed luxury brand La Prairie recorded a 6.2% drop in sales due to weak demand and shifting consumer preferences in the region.
For the U.S. Beiersdorf has “very strong plans”, Chief Financial Officer Astrid Hermann said in an earnings call.
However, she flagged a potentially substantial hit to the firm’s business from the planned tariffs, especially on imports from Mexico, from which it sources two-thirds of its products destined to the U.S.
She said that the company had been building some inventory in the U.S. to at least temporarily deal with the effects of tariffs, and it was also looking at its pricing strategy there.
The company also said it extended the contract of its CEO Vincent Warnery until the end of 2030.
($1 = 0.9551 euros)
(Reporting by Matthias Inverardi, Writing by Elizaveta Gladun and Linda Pasquini; editing by Friederike Heine and Tomasz Janowski)
