Increase in First-Half Group Sales for Beiersdorf by 2.1%; Adjusts Annual Projections for the Year
Beiersdorf, the German skin care and personal care company, has revised its full-year 2025 guidance following the release of its H1 2025 financial report. The company now projects organic sales growth of around 3% for the Group, a decrease from the previously issued range of 4%-6%.
The revised guidance reflects slower growth in the global skin care market, particularly in Q2 and into July 2025. However, Beiersdorf expects acceleration in H2 2025, supported by strong innovation launches such as the NIVEA Epigenetics Serum with Epicelline.
Vincent Warnery, CEO of Beiersdorf, expressed optimism about the launch of the NIVEA Epigenetics Serum, stating that it is expected to contribute significantly to the company's business in the second half of 2025 and bring NIVEA back to its stronger growth path.
In terms of the consolidated EBIT margin from ongoing operations, excluding special factors, Beiersdorf expects it to be slightly above the previous year's level of 13.9%. The Consumer Business Segment's EBIT margin is forecast to increase by 20 basis points above the 13.4% level from the previous year, down from a prior forecast of a 50 basis points increase.
For the tesa Business Segment, the previous guidance remains unchanged, with organic sales growth of 1-3% and an EBIT margin around 16%.
The first half of 2025 saw a decline in profit after tax, with Beiersdorf reporting EUR561 million, down from EUR590 million in the same period of the previous year. Earnings per share (EPS) dropped to EUR2.47, while EPS excluding special factors remained unchanged at EUR2.54.
Despite the softer market conditions, Beiersdorf continues to invest, with capital expenditure rising from EUR171 million to EUR214 million in the first half of 2025. This investment has led to a significant decline in gross cash flow, from EUR769 million to EUR622 million in the first half of 2025.
The return on sales after tax decreased from 11.4% to 10.8% in the first half of 2025. Group sales for the period amounted to EUR5.188 billion, reflecting a modest organic growth of 2.1% compared to the same period in the previous year.
Beiersdorf has not provided a new range for Group organic sales growth or the consolidated EBIT margin from ongoing operations, excluding special factors, but expects both to be slightly above their respective levels from the previous year.
- Beiersdorf, despite investing more in capital expenditure, expects its consolidated EBIT margin from ongoing operations, excluding special factors, to be slightly above the previous year's level.
- With the launch of the NIVEA Epigenetics Serum with Epicelline, Beiersdorf anticipates a significant contribution to its business, aiming to bring NIVEA back to its stronger growth path in the second half of 2025, a period they also expect to see an acceleration in growth following a slow down in Q2 and July.
