Today there is an article on the most important findings from Beiersdorf ($BEI (-1,28%)) from the first quarter of 2025.
CEO Vincent Warnery emphasized that Beiersdorf met expectations in the first quarter of 2025 after a very strong year in 2024. The results of the first quarter were influenced by a high prior-year base, but would support the outlook for the full year. The Derma business (Eucerin and Aquaphor) was particularly emphasized, which once again showed a strong performance with organic sales growth of 11.4 %. Eucerin is not only growing in established markets, but is also expanding successfully into new countries.
At the same time, the foundation for future success is being laid in China by realigning the NIVEA business with strategic innovations in order to win in the skin care segment. Overall, the Consumer segment recorded organic sales growth of 2.3%. Excluding China, growth even amounted to 4%, which is in line with the forecast for the year.
- NIVEA increased sales by 2.5% despite an exceptionally strong first quarter of 2024 and negative effects from the repositioning in China. Strong skin care categories and outstanding double-digit sales growth in North America contributed significantly to this result.
- Eucerin and Aquaphor achieved strong double-digit organic sales growth of 11.4%, as mentioned above, driven by successful face and body care products, innovation launches and the continued strength of Aquaphor.
- The Health Care business (Hansaplast and Elastoplast) recorded fantastic double-digit sales growth of 10.8%, supported by the launch of the next generation of plasters.
- La Prairie sales declined by 17.5% organically, reflecting the best quarter last year and mainly due to ongoing challenges in China and travel retail and related inventory reductions.
- Tesa grew by an impressive 10.7%, partly due to quarterly fluctuations and a very low year-on-year basis, but also supported by a strong electronics business, while changes in the automotive market continued to impact the business.
Warnery emphasized that the overall Group results were well in line with expectations with organic sales growth of 3.6%. He reiterated that the NIVEA innovations for 2025 are impressive and that profitable growth is expected to accelerate in the coming quarters with the planned product launches and relaunches. The Derma business continues its excellent growth trajectory across all regions, with particularly strong growth in emerging markets (+18.5 %) and North America (+10.4 %).
Warnery paid particular attention to the successful launch of thiamidol-based products. Following the successful launch of Eucerin Face in the USA in the previous year, the momentum continued with the market entry of the ingredient thiamidol. New products from the Eucerin Radiant Tone collection went on sale in the first quarter of 2025. In China, a bold approach is being taken to realign the NIVEA business away from less strategic and price-sensitive personal care categories towards premium segmentation in skin care, expansion via digital channels and accelerated innovation. While these efforts would have a negative impact on NIVEA's short-term results in China, they are the basis for future growth in this key market. The launch of thiamidol in China in 2026 following regulatory approval in the previous year is an important milestone.
The "Win with Care" growth strategy is also proving successful, particularly the expansion into new markets and groundbreaking innovations. Chantecaille recorded strong growth of 15.9% in the first quarter, and the launch of thiamidol under this brand (Blanc Peony collection) is expected to open up new growth opportunities. The global launch of the epigenetic anti-ageing lotion has been very successful with high repurchase rates. In the Health Care segment, the launch of the new generation of patches (Second Skin Protection) is setting new standards.
With regard to the outlook for 2025, Warnery confirmed the forecast for organic sales growth in the Consumer segment of 4% to 6% and an improved EBIT margin (excluding special effects) of 50 basis points compared to the previous year. For the tesa segment, the forecast for organic sales growth of 1% to 3% and an EBIT margin of around 16% was confirmed. At Group level, organic sales growth of 4% to 6% and an EBIT margin slightly above the previous year (excluding special effects) are expected. However, uncertainties in the global economy and geopolitical tensions were also mentioned as risk factors.
In the subsequent Q&A, analysts asked various questions:
Jeremy Fialko (HSBC) asked about the impact of tariffs and possible consumer restraint in the US. Warnery explained that the direct impact of US tariffs would be limited as the majority of products sold in the US are manufactured either in the US or Mexico. The greater concern is consumer sentiment, although Beiersdorf is outperforming the market. Regarding La Prairie, he reiterated the expectation of an improvement over the course of the year, following inventory reductions in the first quarter.
Celine Pannuti (JPMorgan) followed up on the outlook for the full year and asked about the momentum in the second quarter. Warnery explained that the second quarter is likely to be at the lower end of the sales growth range due to the timing of Easter (impact on sun protection) and the later launch of major new products. On the question of Epicelline, he said that it was the most successful product launch to date, but still accounted for a small proportion of the derma business.
David Hayes (Jefferies) discussed the performance in the USA, where strong growth in NIVEA and Derma was impacted by Coppertone. Warnery confirmed this and explained that the mass sun care market was declining and Derma brands were gaining market share. For Coppertone, however, there were also positive developments in the sports sector and in facial care. Regarding the China realignment, he explained that the negative impact (approx. 6 percentage points on the Africa/Asia/Australia region) would decrease over the course of the quarters, as the streamlining of the portfolio and distribution partners took place in Q4 2024 and Q1 2025 and the successes with Luminous in e-commerce are now taking effect.
Callum Elliott (Bernstein) wanted to understand in more detail why the China performance should improve in Q2/Q3. Warnery pointed to the continued success of Luminous in cross-border e-commerce and the absence of negative effects from inventory reductions and the discontinuation of distribution partners. Regarding a global reduction in focus on certain personal care categories, he explained that this primarily relates to China, with the exception of deodorants, where ambitions remain high.
Jean-Olivier Nicolai (Goldman Sachs) asked about press reports on NIVEA's loss of market share in Germany. Warnery acknowledged a slight loss of market share in priority countries, but emphasized that NIVEA is gaining market share globally (albeit slightly). He cited competition from private labels and local, ingredient-based brands as reasons for this. Countermeasures such as influencer marketing and a stronger digital presence would be taken. In future, price increases would be more targeted at product launches.
Guillaume Gerard Delmas (UBS) asked about a "Plan B" in the event of a deterioration in consumer sentiment. Warnery emphasized that Beiersdorf was well positioned with brands such as NIVEA, which cover a broad price spectrum, and that there was therefore no specific "Plan B", but rather that the strength of the existing brands and their pricing opportunities would be used. Astrid Hermann added that profitability and investments are managed in an agile manner and that the company has learned from the COVID period how to deal with uncertainties. Regarding the weaker growth rates in Eastern Europe and Latin America in the first quarter, Ms. Hermann explained this with very high year-on-year figures and, in Eastern Europe, additionally with concluded price negotiations with individual customers, which is positive for the future.
Paolo Laudani (Reuters) asked about possible production relocations to the USA and the company's DEI targets there. Astrid Hermann explained that no short-term changes to the production strategy in the USA were currently planned, but that this would be continuously reviewed. Warnery emphasized that diversity and inclusion are important for Beiersdorf, without relying on quotas or positive discrimination. In the USA, there is already a 50/50 management level between men and women.
Fon Udomsilpa (RBC) asked whether a strategic repositioning similar to that in China was also planned in other regions. Warnery replied in the negative and explained that the situation in China was special, while Beiersdorf had started successfully in other large markets such as the USA and India with a strategy based on skin care and then gradually expanded.
Karel Zoete (Kepler) asked about the timing of the launch of new NIVEA core innovations in Europe. Warnery explained that most major product launches are planned for the second half of the year. Regarding La Prairie and its dependence on China, he said that China's share of the overall business has been reduced (below 40%) and efforts are being made to expand the business in other regions such as the US, Europe, India and Japan.
Conclusion:
Beiersdorf's analyst conference painted a mixed picture, but overall optimism prevailed. The Derma business continues to be a strong growth driver and the realignment in China, although a burden in the short term, is seen as a necessary step for future growth, particularly with regard to the launch of Thiamidol.
The innovation pipeline for NIVEA in 2025 looks promising, and the successful launch of new products such as Epicelline underlines the company's innovative strength. Challenges remain in the La Prairie segment and in the mass sun care market in the USA.
The confirmed annual forecast indicates that Beiersdorf is confident of achieving its targets despite global uncertainties. It remains exciting for us to see how the strategic initiatives, particularly in China, will play out in the coming quarters and whether the ambitious growth targets can be achieved.
I hope you enjoyed this summary!
