Beiersdorf Navigates Global Headwinds with Innovation-Driven Growth in Q1 2025

Beiersdorf Aktiengesellschaft, the German personal care and adhesives giant, delivered a resilient performance in Q1 2025, underlining its ability to balance innovation with strategic adaptability amid macroeconomic uncertainties. With Group sales reaching €2.7 billion and 3.6% organic growth, the company reaffirmed its 2025 guidance, signaling confidence in its long-term trajectory despite challenges in key markets like China and the automotive sector.

Financial Performance: Strength in Skincare and Strategic Adjustments

The Consumer Business Segment, Beiersdorf’s core, generated €2.3 billion in sales, driven by standout performances in its Derma and Health Care divisions.
- Derma (Eucerin, Aquaphor) surged 11.4% organically, fueled by breakthrough innovations like Epicelline® in emerging markets and the Thiamidol®-based Eucerin Radiant Tone Collection in North America.
- Health Care rose 10.8%, thanks to the Second Skin Protection plaster, a game-changing product that doubled repurchase rates in Germany.
- NIVEA, however, grew modestly at 2.5%, reflecting strategic repositioning in China toward premium skincare and e-commerce, which temporarily dampened sales.

The tesa Business Segment, despite headwinds in Europe’s automotive sector, posted a robust 10.7% organic sales increase to €441 million, driven by its electronics business and a low prior-year base.

Strategic Priorities: China Restructuring and Innovation Pipeline

Beiersdorf’s Q1 results highlight its disciplined approach to market shifts, particularly in China, where it is repositioning NIVEA to emphasize premium skincare and e-commerce, reducing reliance on price-sensitive categories. This strategic pivot, though temporarily painful (La Prairie’s sales fell 17.5% due to travel retail declines), is critical for long-term growth.

The company is also leveraging its Thiamidol® hyperpigmentation ingredient as a transformative asset. Approved in China in late 2024, it will power launches across NIVEA, Eucerin, La Prairie, and Chantecaille starting in 2026. Early traction is strong: NIVEA’s Luminous 630 line, featuring Thiamidol®, grew 43% in cross-border e-commerce in 2024. In Q1 2025, NIVEA India saw 31.9% growth from Thiamidol®-based products tailored to local preferences, while the U.S. market reported a 37.2% surge in Eucerin’s face category.

Regional Dynamics: Opportunities and Challenges

• Western Europe grew 2.1% organically, hampered by a 200+ basis point drag from luxury travel retail declines.
• Americas delivered 3.7% growth, led by North America’s strong skincare performance.
• Africa/Asia/Australia expanded 1.9%, excluding China, where growth would have been in the high single digits.

Risks and Mitigation Strategies

Beiersdorf faces headwinds in tesa’s automotive sector, with European demand pressured by tariffs and economic volatility. The company is mitigating risks through supply chain shifts (e.g., moving tesa’s electronics manufacturing to India) and focusing on high-growth areas like skincare.

CEO Vincent Warnery emphasized innovation and white-space expansion as growth drivers, while CFO Astrid Hermann noted disciplined cost management to protect margins. The Consumer Segment’s EBIT margin is expected to improve 50 basis points in 2025, with the Group’s EBIT margin slightly exceeding 2024 levels.

Conclusion: A Resilient Play in Beauty and Beyond

Beiersdorf’s Q1 results demonstrate its capacity to navigate turbulence through breakthrough innovation and strategic market focus. Key pillars—Thiamidol®, Epicelline®, and regional repositioning—position the company to capitalize on the global skincare boom, particularly in emerging markets like India and the U.S.

While challenges in China and automotive remain, Beiersdorf’s reaffirmed guidance (4-6% organic sales growth) and shareholder-friendly measures (€500 million buyback, stable dividend) underscore its confidence. With €2.7 billion in Q1 sales and a 50-basis-point margin expansion target, investors can expect Beiersdorf to remain a leader in beauty and adhesives, leveraging its R&D prowess and agile execution to outperform peers in the coming years.

In a sector increasingly defined by innovation and sustainability, Beiersdorf’s focus on epigenetic anti-aging, hyperpigmentation solutions, and climate-neutral operations aligns it with long-term trends. Investors seeking resilience and growth in personal care should take note: this century-old company is proving it can adapt to new realities while staying true to its core strengths.