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Nivea maker Beiersdorf on Thursday said it expected organic growth to slow in the current year, citing 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 US.
Competitors, such as French L’Oréal and US-based rival Coty posted weaker-than-expected quarterly sales in their latest reports.
The German company expects organic sales to grow between 4 percent and 6 percent in 2025, down from a 6.5 percent rise to €9.9 billion ($10.37 billion) it reported for the previous year.
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The company had forecast organic sales growth of between 6 percent to 8 percent in 2024.
Beiersdorf core skincare brands, such as Nivea and Eucerin remained resilient but weakness in Chinese demand for luxury products and shifting consumer preferences in the region have weighed on the company’s luxury brand revenue.
While sales at its Nivea brand and skincare business increased 9.0 percent and 10.6 percent respectively in the past year, its premium brand La Prairie recorded a 6.2 percent drop in sales.
The company also said it extended the contract of its CEO Vincent Warnery until the end of 2030.
By Matthias Inverardi, Elizaveta Gladun and Linda Pasquini; Editors: Friederike Heine and Tomasz Janowski
Learn more:
Nivea Maker Beiersdorf’s Sales Grow Despite China’s Luxury Slowdown
Beiersdorf reported 7.1 percent organic sales growth for the first half of the year on Wednesday, driven by double-digit percentage growth in its flagship skincare brand Nivea.
