(Reuters) - Nivea maker Beiersdorf on Thursday said it expected organic growth to slow in the current year, citing weaker demand in the global skin care market. Beauty firms are reeling from a growth
Beiersdorf Foresees Slower Organic Growth by 2025
(Reuters) - Nivea maker Beiersdorf on Thursday said it expected organic growth to slow in the current year, citing weaker demand in the global skin care market.
Beauty firms are reeling from a growth slowdown from the second half of 2024 and into the new year, exacerbated by soft demand in key market China and inventory reductions at travel retailers and in the U.S.
Competitors, such as French L'Oreal and U.S.-based rival Coty posted weaker-than-expected quarterly sales in their latest reports.
The German company expects organic sales to grow between 4% and 6% in 2025, down from a 6.5% rise to 9.9 billion euros ($10.37 billion) it reported for the previous year.
The company had forecast organic sales growth of between 6% to 8% in 2024.
Beiersdorf core skincare brands, such as Nivea and Eucerin remained resilient but weakness in Chinese demand for luxury products and shifting consumer preferences in the region have weighed on the company's luxury brand revenue.
While sales at its Nivea brand and skincare business increased 9.0% and 10.6% respectively in the past year, its premium brand La Prairie recorded a 6.2% drop in sales.
The company also said it extended the contract of its CEO Vincent Warnery until the end of 2030.
($1 = 0.9551 euros)
(Reporting by Matthias Inverardi, Writing by Elizaveta Gladun and Linda Pasquini; editing by Friederike Heine and Tomasz Janowski)
