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Investing.com -- Beiersdorf (ETR:BEIG) shares fell 10% on Wednesday after the skin care company cut its full-year guidance and reported weaker-than-expected sales for its core Nivea brand in the second quarter, citing a 0.5% decline in organic sales growth.
The figure came in below both the consensus estimate of 1.5% and Jefferies’ forecast of 1.2%.
The German company lowered its 2025 outlook for the Consumer division’s organic sales growth to 3-4%, down from a previous range of 4-6%.
Operating margin expansion guidance for the division was also reduced to 20 basis points year over year from 50 basis points.
The Consumer business accounts for 83% of group revenue and includes Nivea, which makes up 58% of that segment.
Group-level organic sales rose 1.5% in the quarter, slightly below the 1.6% consensus but ahead of Jefferies’ estimate of 1.1%. The Consumer segment also grew 1.5%, falling short of expectations for 2.9%.
Derma products in the Consumer division grew by 13.3%, surpassing the 10.3% from Jefferies and the 10.1% consensus.
La Prairie declined by 1.5%, a better result than the 4.7% decline forecast by Jefferies and the 1.8% consensus decline.
Coppertone and other brands dropped 4.9%, while the Healthcare segment rose 5.9%, exceeding the 3.8% consensus.
The Tesa division, which contributes 17% of Beiersdorf’s revenue, posted a 3.7% decline in organic sales, outperforming the consensus estimate of a 4.8% drop.
Full-year guidance for Tesa remained unchanged, with organic sales expected to grow 1-3% and margins projected at around 16%.
By geography, Europe sales declined 0.4% in the second quarter. The Americas grew 1.5%, below the 2.9% consensus, while Africa/Asia/Australia posted growth of 1.1%, reversing earlier declines.
Group operating margin for the first half was 16.1%, nearly flat year over year but below the 16.3% consensus and Jefferies’ estimate of 16.2%.
Beiersdorf now expects group organic sales growth of “around 3%” for the full year, down from the earlier 4-6% range. It maintained its outlook for a group margin “slightly above last year’s level.”