Beiersdorf Aktiengesellschaft Q2 Earnings Call Highlights

Beiersdorf Aktiengesellschaft ETR: BEI reported a weaker first half of 2026 as continued pressure at NIVEA outweighed growth in its Derma and Healthcare businesses.

The company lowered its full-year outlook for its consumer segment and group sales, while outlining an 18-month plan intended to restore NIVEA to sustainable growth.

Group net sales totaled EUR 4.952 billion in the first half, representing an organic decline of 3.5%. Net sales in the consumer business fell 4.0% organically to EUR 4.113 billion, while tesa sales declined 0.9% organically to EUR 839 million.

Group EBIT excluding special factors was EUR 768 million, with an EBIT margin of 15.5%, compared with a margin of 14.0% for full-year 2025.

Profit after tax remained broadly stable at EUR 558 million, and earnings per share rose to EUR 2.52, supported by the company’s share buyback program.

NIVEA organic sales declined 6.7% in the second quarter and 6.8% in the first half.

Chief Executive Officer Vincent Warnery said the performance reflected both temporary shipment-related pressures and underlying challenges for the brand.

Temporary factors included customer conflicts in Europe, sun-care seasonal phasing, trade destocking and comparisons related to the company’s fourth-quarter 2025 innovation calendar.

Warnery said these issues affected shipments to retailers more than consumer demand.

NIVEA sellout remained positive year to date, although it trailed the market and company expectations.

Beiersdorf had previously begun shifting marketing support away from premium face care and toward body care and deodorants, while increasing its focus on accessible face care products and locally adapted offerings.

The company said the measures produced early improvements in sellout, but not at a scale sufficient to restore global growth.

The next phase of the strategy will run for 18 months and will emphasize affordability, value for money, local relevance, faster innovation and consumer-facing marketing.

Beiersdorf plans to invest an additional EUR 100 million in consumer-facing activity during the second half compared with the same period in previous years.

“Bringing NIVEA back to growth will require disciplined execution and time,” Warnery said.

He added that the company would monitor the turnaround plan closely and seek to broaden NIVEA’s growth drivers across categories, markets and consumer segments.

In response to analyst questions, Warnery said the company does not see a need to reduce prices across NIVEA’s core portfolio, where most products are priced between EUR 2 and EUR 10.

Instead, it plans to support those products with new launches, media spending and in-store activity.

He said the company expects NIVEA sell-in and sellout to be broadly aligned by the end of 2026, following the resolution of customer disputes covering 92% of Beiersdorf’s European business.

The Derma business, which includes Eucerin and Aquaphor, delivered organic sales growth of 7.8% in the first half and 7.4% in the second quarter.

The company cited innovation and expansion into new markets and categories as key drivers.

In the second quarter, Derma sales grew 71% in Brazil and 62% in China.

North American face care sales rose 40% organically, according to the company.

Beiersdorf said Eucerin became the third-largest dermocosmetics brand in Brazil and the leading anti-pigment brand in China.

Aquaphor launched a new daily hydrating body lotion and cream range in the U.S. in July.

The company described it as its largest U.S. launch to date.

The range began with three retail partners and is scheduled for nationwide U.S. retail distribution by year-end.

La Prairie...