Beiersdorf reported a weaker-than-expected performance in the first quarter, with group organic sales falling 4.6% year-on-year to about 2.5 billion euros. That outcome missed both consensus forecasts for a 3.1% decline and Jefferies' estimate of a 3.8% drop. The company had earlier guided to a low single-digit decline for the period.
The consumer division recorded a 4.7% organic downturn, larger than the roughly 3.5% fall anticipated by the market. Within that division, sales at the core NIVEA brand were down 7.0%, underscoring persistent weakness in the mass skincare segment.
By contrast, Beiersdorf's Derma unit - which includes brands such as Eucerin and Aquaphor - expanded by 8.2% organically, outpacing expectations of about 7% growth and beating a low single-digit market. The La Prairie luxury brand saw sales decline 14.9%, a drop that was marginally less severe than some forecasts had suggested.
Jefferies analysts said the results were "way shy" of expectations, pointing to a particularly weak March and raising concerns about the credibility of the company's guidance.
Despite the shortfall in quarterly sales, Beiersdorf reiterated its full-year guidance. The company continues to expect organic sales to be flat to slightly up for the year - compared with consensus around 0.6% - while forecasting operating margins that are slightly below last year's level.
Analysts flagged that prolonged weakness at NIVEA could force strategic responses from management. Specifically, sustained softness in the mass skincare business may necessitate pricing moves or higher marketing spending to stabilise demand. Market sentiment has been pressured as the stock trades near 10-year lows.
The quarter presented a mixed picture: strong dermatology momentum helped offset some of the pressure from mass-market skincare, but the aggregate result fell short of street expectations. Investors and industry watchers will likely follow upcoming quarters closely to see whether the Derma unit's outperformance can offset continued declines at NIVEA, and whether management adjusts pricing or promotional tactics in response.
Key financial metrics reported for the quarter included the group's 4.6% organic sales decline to about 2.5 billion euros, the consumer division's 4.7% drop, NIVEA's 7.0% fall, Derma's 8.2% growth, and La Prairie's 14.9% decline.