Nivea and La Prairie owner lowers outlook after 'slower growth than expected'

Beiersdorf, the owner of Nivea, Chantecaille, La Prairie and more, has lowered its outlook after 'slow growth than expected' in the first half of 2025. During the first half, group sales were up by 2.1% to €5.2 billion (£4.5 billion), bolstered by its Derma category.

The skincare giant delivered an EBIT margin of 16.1%, slightly down from 16.2% in the prior year period. However, despite facing a slowdown in global skincare markets and tougher economic conditions, Beiersdorf is banking on its innovation pipeline to drive growth in the second half of the year. Key launches are expected to reinvigorate performance, particularly for Nivea.

Sales in the Consumer Business Segment reached €4.3 billion (£3.7 billion), growing organically by 1.9%. The standout performer was the Derma category, which includes Eucerin and Aquaphor, delivering double-digit growth of 12.2%. Meanwhile, Nivea recorded a modest organic growth of 1%, with sales slipping 1.2% to €2.92 billion (£2.5 million).

Vincent Warnery, CEO of Beiersdorf, said: "In the first half of 2025, Beiersdorf delivered a solid performance. However, the global skin care market experienced a slower growth than expected, particularly in the second quarter and into July 2025. This is why we adjusted our guidance for the Group and the Consumer Business Segment for the full year of 2025.

"Nevertheless, we expect to accelerate growth in the second half driven by our strong innovation pipeline. Validated by the successful performance of Epicelline in our Eucerin brand, the launch of the NIVEA Epigenetics Serum is expected to contribute significantly to our business in the second half of 2025 and bring NIVEA back to its stronger growth path."

As for the Health Care segment, which includes Hansaplast and Elastoplast, it recorded a strong performance, achieving growth of 8.4%. However, luxury skincare brand La Prairie continued to face challenges, with sales down by 10.7%.

In response to softer-than-expected market conditions, Beiersdorf has lowered its full-year outlook, with the Consumer Business Segment now expected to grow organically by 3-4% (previously 4-6%). The EBIT margin for the segment is projected to increase by 20 basis points, down from the earlier forecast of 50 basis points. However, the company has opted not to cut marketing spend, reinforcing its confidence in upcoming product launches.

At Group level, organic sales growth is now expected to be around 3% (previously 4-6%), with the EBIT margin from ongoing operations projected to be slightly above the 2024 level of 13.9%.