Beiersdorf Aktiengesellschaft ETR: BEI reported a challenging start to 2026 but said results were broadly in line with expectations, supported by continued strength in its Derma business and improving sell-out trends despite weak first-quarter net sales.
On the company’s Q1 2026 conference call, CEO Vincent Warnery said management had anticipated a difficult first quarter, citing headwinds at La Prairie and Nivea, while CFO Astrid Hermann highlighted foreign exchange pressure and several region-specific disruptions. The company confirmed its full-year 2026 guidance.
Q1 sales: organic decline at group level
Warnery said group organic net sales declined 4.6% in Q1 2026. The consumer business fell 4.7% organically, while Tesa posted an organic net sales decline of 4.3%.
Within consumer, performance diverged by division:
- Derma grew 8.2% organically.
- Healthcare increased 1.9% on what Warnery described as a “difficult prior comparison base.”
- Nivea declined 7% organically.
- La Prairie declined 14.9% organically.
Hermann said consumer business net sales were EUR 2.077 billion in the quarter, and Tesa net sales were EUR 407 million. Group net sales totaled EUR 2.484 billion. She added that adverse foreign exchange effects weighed on nominal performance, with nominal sales down 7.7% for both consumer and Tesa.
Derma outperforms as Eucerin and Aquaphor expand
Warnery repeatedly pointed to Derma as a key growth driver, saying the business “again significantly outperformed the Derma market,” which he characterized as growing at low single-digit rates. He credited momentum to innovation and expansion into “white spaces.”
He highlighted ingredients including Epicelline and Thiamidol and said consumers are increasingly seeking “science-backed, efficacious Derma products.”
By region, Warnery cited:
- North America: Derma’s largest region, with 7% organic growth, driven by a “double-digit Aquaphor performance” and continued strength in Eucerin face care.
- Brazil: Eucerin net sales “more than double[d]” in Q1, with Warnery saying the brand is “close to taking the number 3 position” five years after being number 15.
- China: continued “high double-digit growth,” which he attributed to the rollout of Thiamidol.
Addressing a question later in the call, Warnery also said Eucerin showed “absolutely zero” cannibalization from Nivea Epicelline, noting that the products are typically sold in different channels (mass market versus pharmacies). He added that Eucerin Epicelline is expanding with additional SKUs such as day and night products.
La Prairie hit by U.S. department store and China travel retail disruption
Warnery said La Prairie’s Q1 results were affected by “disruptions in the U.S. department store channel as well as travel retail in China,” contributing to the 14.9% organic net sales decline. However, he said this did not reflect underlying demand, stating that retail sales excluding the disruptions “grew close to 10%” in the quarter and that China was a key driver for the “fourth consecutive quarter.”
During the Q&A, Warnery said Saks Fifth Avenue had been a specific issue in the U.S. department channel. “It’s public knowledge that Saks Fifth Avenue was in a difficult situation and we were not selling anything to Saks Fifth Avenue until we had an agreement on the overdues,” he said, adding that the issue is now resolved and shipments have resumed.
Warnery also said La Prairie is planning a “more affordable line,” which he said could broaden distribution, including to Amazon in the U.S. and other retailers that are not currently served due to La Prairie’s pricing.
Nivea rebalancing: sell-out improves despite weak net sales
Nivea remained the biggest drag in Q1, with net sales down 7% organically. Warnery attributed the pressure to a combination of market and internal factors, including flat mass-market volumes, tougher prior-year comparisons, and innovation phasing. He said sell-in for major launches Epicelline and Derma Control occurred in Q4 2025, with sell-out absorbed in Q1 2026.
Warnery also flagged retailer disputes in Europe. He said some retailers in Germany and France were pushing for price decreases, which the company refused, and that negotiations were ongoing. Responding to another analyst, he broke down the gap between reported Nivea net sales and sell-out: with Nivea down 7% in Q1 versus year-to-date sell-out growth of 1.7%, he attributed roughly 2 percentage points to innovation phasing, 2 points to retailer conflicts, about 50 basis points to the Middle East, and “the rest” to core business weakness that has not yet returned to growth.
Warnery said the company is implementing a three-pillar “rebalancing” strategy for Nivea:
- Portfolio: broaden focus across face care, body care, and deodorants.
- Accessible face care: increase emphasis on more affordable face care alongside premium lines such as Luminous and Epicelline.
- Local relevance: give key markets (including China, the U.S., India, Japan, and Brazil) greater flexibility in execution within what he called “localization within a frame.”
He provided examples including increased body care marketing in emerging markets (with market shares moving into positive territory in value and volume), deodorants in Europe supported by the Derma Control launch, and local adaptation of Luminous through the Luminous Glow line, citing Thailand as a “proof point” where sachet formats and influencer activation helped the product become the “number one serum in the market.”
On Epicelline, Warnery said repurchase metrics look “promising,” adding that initial repurchase rates for the Nivea Epigenetic Serum in Europe are comparable to Eucerin’s in 2025. Later, he said Nivea repurchase rates were “between 35%-48%, depending on the countries.”
Hermann said Nivea’s decline was “primarily driven by volume,” adding that the impact was broad across regions, with some country-level bright spots.
Regional factors: Middle East disruption, travel retail accounting, and Coppertone phasing
Hermann said regional consumer performance was “mostly attributable” to Nivea and La Prairie, but pointed to additional headwinds:
- North America was affected by La Prairie disruption and Coppertone, which she said was impacted by portfolio streamlining toward the sports segment and promotional phasing. Excluding those factors, she said North America’s organic growth would have been +3.2%, mainly driven by Derma.
- Western Europe was hit by the disruption of China travel retail, which is recorded in Western Europe for La Prairie. Hermann quantified this as a 130 basis point headwind in Q1.
- Africa, Asia, Australia faced a 170 basis point headwind from the Middle East crisis; excluding the Middle East, she said the region would have grown 1.1%.
Warnery later characterized the Middle East as about 3% of sales and said the company saw a roughly -50% decline there, describing it as a net sales issue rather than a sell-out problem because the company has been “able to find ways to stock the retailer in due time,” including rerouting logistics.
On Coppertone, Warnery told analysts Q1 weakness reflected phasing after a major U.S. customer ordered earlier than expected in December, supporting Q4 but depressing Q1 net sales. He said sell-out in the sports focus area was up 7.6%, which he described as the best performance since Beiersdorf acquired the brand.
Tesa: prior-year electronics comparison weighs on Q1
Hermann said Tesa’s Q1 organic sales decline was largely due to a high prior-year comparison in electronics, tied to customer production footprint shifts and adjusted order patterns. She said the automotive sector remained challenging, but Tesa outperformed the market “especially in applications for new energy vehicles.”
Guidance reiterated; cost outlook monitored
Warnery said the company is confirming its 2026 outlook despite the Q1 decline. Beiersdorf expects organic net sales to be “flat to slightly growing” for both consumer and Tesa, with an EBIT margin excluding special factors “slightly below the previous year,” including at group level.
On costs, Hermann said the direct impact of oil and gas is “relatively limited,” primarily affecting logistics, and has been “manageable so far.” However, she said the company is running multiple scenarios and warned that prolonged disruption “could trigger significant cost increases,” potentially requiring tools to offset pressure. She later said the company is protected in the near term by contracts but could face more pressure when negotiating for the second half, adding that pricing could be considered if conditions persist.
Looking ahead, Warnery said he expects Q2 to be “flattish back to growth, slight growth,” supported by Derma and improvement in La Prairie, Chantecaille, and Nivea, while noting the importance of the sun care season following strong performance in the prior two years.
About Beiersdorf Aktiengesellschaft ETR: BEI
Beiersdorf Aktiengesellschaft, together with its subsidiaries, manufactures and distributes consumer goods in Europe, the Americas, Africa, Asia, and Australia. It operates in two segments, Consumer Business and Tesa Business. The Consumer Business Segment offers skin and body care products. The Tesa Business segment provides adhesive tapes and self-adhesive solutions for industries, craft businesses, and consumers. This segment offers its system solutions to the automotive, electronics, printing and paper, and building and construction industries.
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