Release Date: April 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beiersdorf AG (BDRFF, Financial) achieved a 2.3% organic sales growth in the consumer segment, despite a challenging prior year comparison.
- The Derma brands, Eucerin and Aquaphor, reported strong double-digit organic sales growth of 11.4%, driven by successful innovations and market expansions.
- The healthcare business, including Hansaplast and Elastoplast, experienced a 10.8% sales growth, supported by new product launches.
- Tesa division recorded an impressive 10.7% organic sales growth, bolstered by a strong performance in the electronics segment.
- The company is strategically repositioning in China, focusing on skincare and digital channels, setting the foundation for future growth.
Negative Points
- Sales of La Prairie declined by 17.5% due to challenges in China and the travel retail market, necessitating destocking activities.
- The repositioning efforts in China negatively impacted NIVEA's results, contributing to a slower growth rate in the region.
- The automotive market continues to pose challenges for Tesa, with recent tariff developments adding further complications.
- The consumer business in the Africa, Asia, Australia region was significantly affected by repositioning measures in China, resulting in lower growth.
- Beiersdorf AG (BDRFF) faces uncertainties in the global economy, including geopolitical tensions and tariff policies, which could impact consumer confidence and business performance.
Q & A Highlights
Q: How are US tariffs affecting Beiersdorf, and what is the outlook for La Prairie's growth?
A: Vincent Warnery, CEO, explained that Beiersdorf is minimally impacted by US tariffs as two-thirds of their US sales are produced in the US or Mexico, which is covered by free trade agreements. Regarding La Prairie, the company expects better performance in Q3 and Q4, following destocking efforts in Q1 and new product launches. E-commerce growth, particularly in China, is also expected to support La Prairie's recovery.
Q: Can you elaborate on the expected growth for Beiersdorf in 2025, especially considering the challenges in China and travel retail?
A: Vincent Warnery stated that Beiersdorf expects organic sales growth in the consumer segment to be between 4% and 6% for 2025. The strategic refocus in China will continue to affect sales, but growth is expected to accelerate in the second half of the year. The company is optimistic about its innovation pipeline and expansion into new markets.
Q: What is the impact of the repositioning in China on Beiersdorf's performance, and how is it expected to change in the coming quarters?
A: Vincent Warnery noted that the repositioning in China has negatively impacted Q1 results, but improvements are expected in Q2 and beyond. The focus is on optimizing skincare and expanding digital channels. The launch of Thiamidol in China in 2026 is anticipated to drive future growth.
Q: How is Beiersdorf addressing market share challenges in Europe, particularly for NIVEA?
A: Vincent Warnery acknowledged a slight market share loss for NIVEA in Europe due to competition from private labels and local brands. The company is focusing on maintaining NIVEA's value-for-money positioning and leveraging digital marketing and influencer partnerships to counteract these challenges.
Q: What are the expectations for Beiersdorf's EBIT margin in 2025, and how will investments impact this?
A: Astrid Hermann, CFO, stated that Beiersdorf expects the EBIT margin to be 50 basis points above last year's level for the consumer segment. The company is making significant investments in innovation and market expansion, with a stronger EBIT profile anticipated in the second half of the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
