Hamburg, Germany, August 8, 2024 – Beiersdorf, the German cosmetics company best known for its Nivea brand, reported a decline in operating profit for the first half of the year, falling short of analyst expectations. While the company did see an increase in overall revenue, it was below forecasts. The disappointing results were largely attributed to a slowdown in demand for luxury products in China, which impacted the company’s high-end La Prairie brand.
First-half revenue reached €5.2 billion, representing an organic growth of 7.1%. This figure slightly missed analyst expectations of 7.2% organic growth. While the flagship Nivea brand saw organic growth, the luxury brand La Prairie experienced a 7% decline in sales, primarily due to challenging market conditions in China.
Operating profit, excluding special items, decreased to €838 million. This figure also fell short of analyst forecasts of €890 million. The company attributed the shortfall to increased spending on marketing, research and development, and digitalization.
Beiersdorf reaffirmed its full-year 2024 guidance, forecasting organic sales growth of 6% to 8%. However, the company cautioned that the performance of the La Prairie brand in the second half of the year will be crucial in determining the overall outcome.
Key points:
- Beiersdorf missed both revenue and profit expectations for the first half of 2024.
- The decline in operating profit was attributed to increased spending and a slowdown in demand for luxury products in China.
- The company’s flagship brand, Nivea, saw growth, but the luxury brand La Prairie struggled.
- Beiersdorf reaffirmed its full-year guidance but warned that the performance of La Prairie will be crucial.
