Germany's Beiersdorf Reports Rise in Q1 Sales Amid Global Uncertainty

dpa
(TNS)

Berlin (dpa) — German consumer goods maker Beiersdorf, the owner of Nivea bodycare products, reported an increase in first quarter sales on Tuesday, despite a slight drop in the Americas region.

“Predicting the impact of ongoing uncertainties in the global economy on consumer confidence and business operations remains challenging,” the company wrote.

Nonetheless, Beiersdorf confirmed its fiscal outlook for 2025.

In its first quarter, group sales were €2.691 billion ($3.06 billion), up 3.3% from last year’s €2.604 billion. On an organic basis, sales grew 3.6%.

Sales in Europe grew 1.8% to €1.20 billion, while the combined Africa/Asia/Australia region saw sales climbed 9% to €809 million. In the Americas however, sales edged down 0.1% to €684 million.

The consumer business segment generated sales of €2.25 billion, up 1.9% on a reported basis and up 2.3% organically. The growth was particularly driven by the success of the Derma business, with 12.5% sales growth.

The core Nivea brand grew 1.3% to €1.48 billion.

The Health Care business, which mainly comprises the Hansaplast and Elastoplast plaster divisions, delivered organic sales growth of 10.8%.

The tesa business segment – which markets adhesive tapes – recorded organic sales growth of 10.7% year-on-year, generating sales of €441 million, primarily driven by the strong performance of the electronics business.

For fiscal year 2025, Beiersdorf continues to expect group organic sales growth in the range of 4% to 6%, and the adjusted EBIT (earnings before interest and taxes) margin to be slightly above the previous year’s level.

Beiersdorf maintained its expectation of 4% to 6% organic sales growth for the consumer business segment for the full year 2025. The company confirmed the guidance for the adjusted EBIT margin in the segment of 50bps above last year’s level.

For the tesa business segment, Beiersdorf still projects organic sales growth of 1-3%, and adjusted EBIT margin to be around 16%.

The company said: “While the first quarter results are fully in line with the company’s expectations, predicting the impact of ongoing uncertainties in the global economy on consumer confidence and business operations remains challenging, particularly in the short term. Beiersdorf remains vigilant and committed to adapting its strategies to mitigate these challenges while continuing to focus on sustainable growth.”