Beiersdorf, the company behind Nivea, decides to go against President Trump's policies
beiersdorf,a renowned consumer goods conglomerate, anticipates modest growth this year following a record-breaking 2021. The global skincare market is projected to expand by just 5% in 2022, a significant decrease from the anticipated 2024 growth rate, as reported by Beiersdorf in its outlook statement. The corporation expects organic sales growth of 4% to 6% for the current year, a noticeable decrease from the 6.5% growth recorded in 2021, which led to a record-breaking €9.9 billion in sales.
Investors and analysts view this projection as a positive sign given the challenges faced by competitors in the cosmetics industry. Beiersdorf's Chief Financial Officer, Astrid Hermann, reassured investors that the company's sales will surpass €10 billion for the first time in 2025. These optimistic projections resulted in Beiersdorf securing a significant market rise, making it the biggest gainer in the DAX.
The company's ambitions for expansion in the US remain undeterred, despite potential tariffs imposed by the Trump administration. Beiersdorf manufactures approximately two-thirds of its products destined for the US market outside US borders, with Mexico serving as a significant production hub. This outsourcing strategy allows the company to mitigate some of the negative impacts of tariffs.
CEO Vincent Warnery has no plans to modify or halt diversity programs in the US or other countries, a stance endorsed by the company's leadership despite Trump's criticism of diversity initiatives within corporations. Warnery remains confident in Beiersdorf's commitment to inclusivity and diversity, stating that there will be no changes made to these programs.
The company's flagship brand, Nivea, registered an impressive 9% organic growth rate in 2021, reaching sales of €5.6 billion. However, its luxury brand, La Prairie, suffered from weakened consumption in China, leading to a 6.2% sales decline. Despite this setback, the luxury brand managed to slow its sales decline, indicating some progress in the face of adversity.
Beiersdorf's adhesives division, Tesa, reported a 1.9% organic sales growth to €1.7 billion. Sales in the industrial segment outpaced consumer sales, reflecting a positive trend. By 2025, Beiersdorf aims to increase sales by 1% to 3% in this division, with the potential for a slight dip in the EBIT margin to 16%.
The company's strategies for growth and diversification will need to be adapted to navigate any changes in policy or tariff regulations under the current administration or any potential future policy shifts. Beiersdorf's resilience in the face of challenges and its commitment to innovation and diversification make it an intriguing player to watch in the global cosmetics and skincare market.
Beiersdorf revealed its quarterly figures, showing an anticipated organic sales growth of 4% to 6% for 2022, a decrease from the 6.5% growth recorded in 2021. This outlook, as part of the corporation's statement, indicates that Beiersdorf expects to surpass €10 billion in sales for the first time in 2025.
Despite potential tariffs imposed by the Trump administration, Beiersdorf's ambitions for expansion in the US remain undeterred, with Mexico serving as a significant production hub through its outsourcing strategy.
In the report, Beiersdorf's adhesives division, Tesa, demonstrated a 1.9% organic sales growth to €1.7 billion, with the industrial segment outpacing consumer sales. By 2025, the division aims to increase sales by 1% to 3%, potentially leading to a slight dip in the EBIT margin to 16%.
