Beiersdorf has upped its full year guidance estimates following strong third quarter results.
The skin care brand owner has raised its Consumer Business Segment’s expected 2022 organic sales growth from 9% to 10%.
“Beiersdorf is heading in the right direction in terms of pricing, is pushing a positive product mix and continues to press ahead with efficiency initiatives,” the group said.
However, it stated there is a “factor of uncertainty” related to the development.
These include ongoing price negotiations with retailers and macroeconomic and geopolitical challenges.
Beiersdorf CEO Vincent Warnery said: “For the full year, we are raising our sales guidance while being aware of the economic uncertainties in the fourth quarter.”
The estimated guidance increase is also the result of Beiersdorf’s strong figures for the first nine months of 2022, with broad-based sales rising 11.1% to €6.7bn.
Sales in the Consumer Business Segment grew 11.7% in this period, rising to €5.4bn.
How Nivea helped drive growth
Personal care and skin care were key growth drivers, especially increased sales from Beiersdorf’s core brand Nivea.
Sales in Nivea grew organically 10.8% year-over-year in the first nine months.
For the first time, the brand has also increased its market share in all regions.
Nivea reported “significant growth” in China, “with an overall recovery in Asia in the third quarter,” said the group.
The skin care brand’s presence in Latin America and India also grew.
Beiersdorf’s Derma business has also outperformed market growth in the first nine months.
Derma brands Eucerin, which entered the Polish market this year – a large market for dermocosmetics – and Aquaphor reported a 25.3% organic growth in sales.
Luxury brand La Prairie achieved a 5.5% increase in the same period.
“La Prairie recovered from lockdown-related restrictions in the first half of the year,” said the company.
“In particular, strong business in China and good growth in the travel retail business were the main drivers of its growth.”
Commenting on the results, Warnery added: “We retained the strong growth dynamic of the first half of the year and in the third quarter and achieved broad-based, double-digit growth rates.
“We are increasingly reaping the rewards of our actions to make Nivea an even more global and digital brand.
“For the first time, our brand icon has succeeded in gaining market share in all categories and regions.”