March 2 (Reuters) - Nivea-maker Beiersdorf said on Monday it would launch a share buyback programme of up to 750 million euros ($877 million) over the next two years, and forecast its 2026 core
Nivea-maker Beiersdorf's 2026 margin forecast disappoints investors
Beiersdorf's Financial Outlook and Market Reaction
By Anna Peverieri and Bernadette Hogg
Share Price Impact
March 3 (Reuters) - Shares in Beiersdorf dropped more than 12% on Tuesday after the Nivea-maker forecast a slightly lower 2026 core operating profit margin the night before, disappointing already cautious investors.
2026 Sales and Margin Forecast
The German consumer goods group expects 2026 sales to be flat or grow slightly on an organic basis, while its operating margin, excluding special items, is expected to be slightly below last year's 14.0%. It said raw material cost increases and unfavourable foreign exchange effects would weigh on the results.
Market and Analyst Reactions
While the market had expected a cautious outlook, no growth and the potential for falling margins was a negative surprise, a local trader said. Analysts from J.P. Morgan also said the outlook was disappointing.
Short-Term Performance and Industry Context
The group said it expected first-quarter results to come in below the full-year range, citing disruptions in the U.S. retail and China travel retail landscapes.
Competitor Performance
Competitor L'Oreal had also reported problems in Chinese travel retail for the fourth quarter of 2025, but said the country had made a return to positive luxury consumption.
Share Buyback and Recent Results
As of Monday's close, Beiersdorf's shares were up more than 11% this year, outperforming the broader sector which was up around 9%. Those gains were wiped off on Tuesday.
Share Buyback Programme
The company said on Monday it would launch a share buyback programme of up to 750 million euros ($877 million) over the next two years.
2025 Sales and Earnings
The group's sales rose 2.5% organically to 9.9 billion euros in 2025, but sales of its flagship Nivea brand grew only 0.9%. Earnings before interest and taxes, excluding special factors, rose slightly to 1.38 billion euros.
Analyst Commentary on Nivea Brand
Jefferies said in a note Nivea's weaker-than-expected fourth-quarter growth would raise concerns over what was required to improve performance at the core brand.
Strategic Focus for Nivea
Beiersdorf plans to refocus Nivea on its popular face care products at a more accessible price range, as these products perform well in specific local markets, while broadening its range of deodorants and body care products, group CEO Vincent Warnery said in a call on Tuesday.
($1 = 0.8550 euros)
(Reporting by Anna Peverieri in Barcelona and Bernadette Hogg in Gdansk; Editing by Chris Reese, Lisa Shumaker and Milla Nissi-Prussak)
