Beiersdorf To Invest Up To €80M A Year To Boost Consumer Business

By Publications Checkout
Beiersdorf To Invest Up To €80M A Year To Boost Consumer Business

Nivea skin cream maker Beiersdorf will make an additional investment of up to €80 million a year in its consumer business to counter a forecast drop in sales growth, the German company said on Tuesday.

New CEO Stefan De Loecker, who took the reins on 1 January, last month promised strategic steps to deliver sustainable growth after reporting slower sales in the fourth quarter of 2018.

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"Our entire business model needs timely adaptation due to new market realities and fast-changing technology developments," De Loecker said ahead of 2018 results to be published on Wednesday.

"This requires, first and foremost, higher investments."

Beiersdorf said it would invest between €70 million and €80 million a year from 2019 in the consumer segment, which accounts for 80% of group sales.

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It said that it expects sales at the division to growth between 3% and 5% this year, against 5% in 2018.

For the group, Beiersdorf also expects sales growth of 3-5% in 2019, compared with 5.4% in 2018.

The company's EBIT margin will decline this year as a result of the additional investment, the company added.

News by Reuters, edited by Checkout. Click subscribe to sign up for the Checkout print edition.

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