German personal-care products maker Beiersdorf has raised its sales guidance for 2024 after reporting a robust first-quarter performance. The company’s strong sales growth, driven by its popular Nivea cream, has prompted an upgrade in its full-year expectations.
Beiersdorf reported a significant increase in sales during the first quarter of 2024, fueled by the success of its Nivea cream. The company’s organic sales growth for the quarter exceeded expectations, leading to an upgrade in its full-year guidance. Beiersdorf now expects organic sales growth for 2024 to be between 6% and 8%, compared to its previous target of mid-single-digit growth.
The Nivea brand, including Labello, experienced a stellar organic sales increase of 12.6% year-on-year in the first quarter. This growth was driven by balanced pricing and volume growth, with Nivea’s sales growing in all regions, particularly in Europe and the Emerging Markets.
Beiersdorf’s derma brands, Eucerin and Aquaphor, also contributed to the company’s strong first-quarter performance. These brands recorded organic sales growth of 10.2%, with the Eucerin Sun business performing particularly well in Europe. Luxury brand La Prairie returned to growth in the first quarter of 2024, with an organic sales increase of 1%. The brand’s turnaround is gaining momentum, following challenging market conditions in the previous year. Further growth acceleration is expected in the second half of the year.
Beiersdorf’s strong first-quarter performance and the upgrade in its sales guidance for 2024 indicate positive momentum for the company. The success of Nivea, along with the growth of its derma brands and the turnaround of La Prairie, positions Beiersdorf for continued growth in the personal-care products market.
RTM Watch’s Take
Beiersdorf’s strong first-quarter results and the subsequent upgrade in its sales guidance demonstrate the company’s ability to adapt and thrive in a competitive market. The success of Nivea, along with the growth of its derma brands and the positive turnaround of La Prairie, showcase Beiersdorf’s diverse portfolio and its ability to meet consumer demands. With the upgraded sales guidance, Beiersdorf is well-positioned to capitalise on future growth opportunities and maintain its position as a leading player in the personal-care products industry.
