Beiersdorf's Q2 Earnings Fall Due to Slowing Demand for Skin-Care Products

Beiersdorf's Q2 earnings fell due to slower demand for Nivea and La Prairie products. Group sales rose to €5.19bn, driven by Derma and tesa businesses. However, Nivea sales declined 1.2% to €2.92bn, and La Prairie sales fell almost 11% to €272m. Beiersdorf cut its full-year guidance, expecting 3-4% organic sales growth in the consumer business segment, down from 4-6% previously.

Beiersdorf AG, a leading global provider of skin care and adhesive solutions, reported a decline in its first-half earnings due to a slowdown in demand for its Nivea and La Prairie brands. The company's earnings before interest and taxes (EBIT) excluding special factors fell to €816 million from €848 million in the same period last year, a decrease of 3.8% [1]. The EBIT margin also declined to 16.1% from 16.2% [1].

Group sales increased to €5.19 billion, up from €5.175 billion, driven primarily by the strong performance of the Derma and tesa businesses. However, Nivea sales declined by 1.2% to €2.92 billion, and La Prairie sales fell almost 11% to €272 million [1].

The company attributed the slowdown to slower-than-expected growth in the global skin-care market, particularly during the second quarter and into July 2025. Beiersdorf's CEO, Vincent Warnery, stated that the global skin-care market experienced a slower growth than expected, particularly in the second quarter and into July 2025 [1].

In response to these challenges, Beiersdorf has adjusted its full-year guidance. The company now expects organic sales growth of 3-4% in the consumer business segment, down from the previous estimate of 4-6% [1]. The EBIT margin from ongoing operations (excluding special factors) in the Consumer Business Segment is expected to increase by 20 basis points above the previous year’s level in 2025 [1].

The tesa Business Segment confirmed its previous guidance of organic sales growth in the range of 1-3% [1]. The EBIT margin from ongoing operations (excluding special factors) is confirmed to be around 16% [1].

Beiersdorf remains committed to profitable growth and expects the consolidated EBIT margin from ongoing operations (excluding special factors) to be slightly above the previous year’s level [1].

References:
[1] Beiersdorf AG. (2025, August 6). Beiersdorf delivers solid H1 2025. Retrieved from https://www.beiersdorf.com/newsroom/press-information/all-press-releases/2025/08/06-beiersdorf-delivers-solid-h1-2025