German cosmetics big Beiersdorf introduced on Monday, August 3, a downgrade to its full-year outlook, following a slower-than-expected restoration of its flagship Nivea model. The corporate stated it’s going to now speed up its turnaround efforts for the enduring label.
Within the first half of the yr, Beiersdorf’s Derma enterprise, comprising the Eucerin and Aquaphor manufacturers, as soon as once more outperformed, delivering 7.8% natural gross sales progress, pushed by innovation and enlargement into new market segments. In distinction, Nivea continued to face challenges, with gross sales declining 6.8%.
Beiersdorf now initiatives to put up “a low-single-digit natural gross sales decline” in 2026, in contrast with its earlier forecast of “flat to barely rising natural gross sales.”
The group attributed the revision to a persistently difficult world skincare market, in addition to the influence of the Center East disaster on shopper confidence, spending patterns, and manufacturing prices.
In response, Beiersdorf is accelerating Nivea’s turnaround plan, with a deal with restoring progress, notably via stronger native market penetration. Extra broadly, the group plans to extend investments in “consumer-facing actions” over the following 18 months.
“The primary half of 2026 confirmed each the power of our portfolio and the place we have to enhance. Our Derma manufacturers continued their multi-year outperformance and La Prairie returned to progress within the second quarter. Nivea continued to face challenges, regardless of the optimistic alerts from the rebalancing measures that we began final yr. We now take much more decisive motion to return Nivea to progress with an 18-month turnaround plan centered on strengthening the model’s competitiveness throughout classes, markets and shopper segments. To help this plan, we’ll improve consumer-facing investments into the model,” stated Vincent Warnery, CEO of Beiersdorf.
Nonetheless, the group warned that these investments, mixed with persistently rising manufacturing prices, are anticipated to “weigh on profitability in 2026.”
Second-quarter outcomes underscored these challenges, with natural gross sales within the Shopper enterprise declining 3.3%, contributing to a 2.3% drop at group degree.
Regardless of these headwinds, Beiersdorf reiterated its ambition to return to progress by 2027 and obtain improved profitability from 2028 onward.
