Beiersdorf lowers full-year outlook as Nivea enters 18-month turnaround

Beiersdorf has lowered its full-year sales and margin guidance as it begins an 18-month turnaround plan aimed at returning Nivea to growth.

The German skincare group now expects a low-single-digit organic sales decline across both its Consumer Business Segment and the wider group in 2026. Previously, it had forecast flat to slightly positive organic sales growth.

Group organic sales declined 3.5% to €4.95 billion in the first half of the year, including a 2.3% drop in the second quarter. Consumer sales fell 4% to €4.11 billion over the six-month period.

"The first half of 2026 showed both the strength of our portfolio and where we need to improve," Beiersdorf CEO Vincent Warnery said in the company's half-year update.

Nivea turnaround moves into its next phase

Nivea sales fell 6.8% in the first half, reflecting pressure from trade destocking, customer disputes and the later start to Europe's sun care season. The timing of product innovation also weighed on sell-in, although sell-out to consumers remained positive.

Beiersdorf began rebalancing Nivea's portfolio in the second half of 2025. Those measures have delivered early improvements in some market share and volume indicators, but the gains have so far been too limited across the brand's categories and markets to improve its global performance.

The new 18-month programme will focus on product innovation, affordability, market penetration and greater regional tailoring. Beiersdorf plans to increase consumer-facing investment, including an additional €100 million in media spending during the second half compared with the same period in 2025.

The increased investment, together with cost inflation partly linked to the Middle East crisis, will weigh on profitability. Beiersdorf now expects its Consumer EBIT margin, excluding special factors, to be at least 11%, down from 13.6% in 2025.

Derma growth offsets pressure on Nivea

Eucerin and Aquaphor continued to outperform the broader derma market, with first-half organic sales growth of 7.8%. Beiersdorf attributed the performance to Eucerin innovations featuring Epicelline and Thiamidol, alongside Aquaphor's expansion into body lotions and creams.

The Derma business recorded growth across North America, Brazil and China. Its continued expansion contrasted with weaker sales at Nivea and luxury skincare brand La Prairie.

La Prairie sales declined 6.9% in the first half following temporary disruptions at US department stores and in Chinese travel retail. The brand returned to net sales growth in the second quarter, with sales rising 2.2%, and is set to launch a more accessible entry-level line in September.

Looking ahead, Beiersdorf continues to target a return to net sales growth and a stabilised EBIT margin in 2027. From 2028, the company expects to deliver above-market sales growth alongside steady margin improvement.