THE WHAT? Beiersdorf, reported a 6.5% organic sales growth for the first nine months of 2024, reaching €7.55 billion. Strong performances in North America and skincare growth offset challenges in China’s luxury market, which continued to affect the company’s La Prairie brand.
THE DETAILS Despite China’s weakened luxury sector, Beiersdorf saw gains in its core brands, with a 7.3% rise in consumer segment sales, totaling €6.3 billion for the period. Notably, North American demand boosted double-digit growth for skincare brands Eucerin and Aquaphor, while Nivea saw robust sales in emerging markets. However, La Prairie, representing 7% of total sales, faced a 7.3% decline due to China’s economic slowdown and decreased travel retail demand. Beiersdorf is tackling additional challenges, including parallel trading and counterfeit products, with legal actions underway. Shares rose 3.9% to €132, as management maintained an optimistic outlook, predicting strong Q4 growth and forecasting a 2024 organic sales increase of 6-8% and an EBIT margin slightly above last year’s level.
THE WHY? Beiersdorf’s performance highlights the resilience of its core brands amid economic pressures, driven by product strength and market diversification. Although luxury demand in China remains a concern, the company’s focus on North America, Japan, and emerging markets has fostered growth and balanced its portfolio. The continued rise in demand for skincare essentials, coupled with strategic legal actions to protect brand integrity, reinforces Beiersdorf’s steady positioning in the global beauty market.