Beiersdorf Expects Skincare Market to Recover in 2022

German consumer goods company Beiersdorf said on Tuesday it expects sales to rise about 5 percent in 2022 after it reported a strong end to 2021 for its adhesives business, although its Nivea brand suffered due to Covid-19 lockdowns.

Beiersdorf predicted the global skincare market would continue to improve in 2022, but Covid-19-related challenges meant there was an unusually high degree of uncertainty about business prospects.

Beiersdorf shares were up 3.9 percent at 08:25 GMT.

It forecast sales growth for 2022 in the “mid single-digit” range after reporting an organic rise of 9.7 percent to €7.6 billion ($8.52 billion) in 2021. It expects an operating profit margin around the same level as 2021, when it came in at 13 percent.

Beiersdorf expects its consumer business will see an operating margin slightly above the level of 2021, while it will be “noticeably below” last year’s level for the Tesa adhesives unit, which serves the electronics and automotive markets.

Jefferies analyst Molly Wylenzek said the guidance was positive, but noted that Nivea sales were weak, with growth slowing to 1.7 percent in the fourth quarter from 2.6 percent in the third.

“The turnaround of Nivea is becoming an increasingly urgent priority,” she wrote in a note.

Beiersdorf appointed Grita Loebsack, who previously worked in marketing at Essilor, Unilever and L’Oréal, to the new position of global president of Nivea in December.

Chief executive Vincent Warnery told analysts that the company planned a more global approach to product launches and marketing for Nivea, adding the brand was gaining market share, particularly for its face care products.

Last month, shares in the world’s largest cosmetics company L’Oréal dropped as higher marketing spending put pressure on profitability, overshadowing forecast-beating sales and gains in market share.

Beiersdorf does not expect input costs to ease in 2022 and will raise prices globally in two rounds, but the consumer business, including Nivea, has started the year with accelerating growth, finance chief Astrid Hermann said.

By Emma Thomasson; Editors: Miranda Murray and Ed Osmond

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