Beiersdorf Cuts Full-Year Forecast as Nivea Begins 18-Month Turnaround Plan

Beiersdorf has lowered its full-year sales and margin guidance as it launches an 18-month turnaround plan aimed at restoring growth to its flagship Nivea brand.

The German skincare group now expects a low-single-digit organic sales decline across both its Consumer Business Segment and the wider group for 2026, scaling back its previous guidance of flat to slightly positive organic revenue growth.

Group organic sales dropped 3.5% to €4.95 billion in the first half of the year, including a 2.3% contraction in the second quarter. Sales in the Consumer segment fell 4% to €4.11 billion over the six-month period.

"The first half of 2026 showed both the strength of our portfolio and where we need to improve," Beiersdorf CEO Vincent Warnery said in the company's half-year financial update.

Nivea turnaround moves into its next phase

Nivea sales dropped 6.8% in the first half, weighed down by trade destocking, retailer disputes, and a delayed start to Europe's sun care season. The timing of product rollouts also affected sell-in shipments, though sell-out demand from end consumers remained positive.

Beiersdorf began rebalancing Nivea's brand portfolio in late 2025. While those measures delivered early market share and volume gains in select regions, the improvements have so far been too localized across categories to uplift overall global performance.

The new 18-month strategy focuses on product innovation, competitive pricing, deeper market penetration, and expanded regional tailoring. To accelerate momentum, Beiersdorf plans to boost consumer marketing, adding €100 million in media spending during the second half of the year compared with the same period in 2025.

The expanded marketing investment, combined with cost inflation linked partly to geopolitical tensions in the Middle East—a headwind currently impacting retail operations across Europe—will weigh on near-term profitability. Beiersdorf now projects its Consumer EBIT margin, excluding special items, to reach at least 11%, down from 13.6% in 2025.

Derma growth offsets pressure on Nivea

In contrast, Beiersdorf's Derma business continued to outperform the wider dermatological market, generating 7.8% organic sales growth in the first half. Management attributed the gains to Eucerin innovations featuring active ingredients Epicelline and Thiamidol, alongside Aquaphor's expansion into body lotions and creams.

The Derma division expanded across North America, Brazil, and China, providing a buffer against declines at Nivea and luxury skincare label La Prairie. While competitors capitalized as global beauty demand accelerated, Beiersdorf faced mixed performance in the beauty industry across its mass and luxury portfolios.

La Prairie revenue fell 6.9% in the first half following temporary disruptions in US department stores and Chinese travel retail. However, the prestige brand returned to net sales growth in the second quarter with a 2.2% gain and plans to launch a more accessible entry-level line in September.

Looking ahead, Beiersdorf expects to return to net sales growth and stabilize its EBIT margin by 2027. From 2028 onward, the company targets above-market sales growth alongside steady margin expansion.