Nivea maker Beiersdorf expects organic sales growth to slow this year to a mid-single-digit range after reporting double-digit growth for the first time in two decades in 2022 thanks to strong demand for its skin care products.
Beiersdorf shares fell 3.8% in pre-market trade at Lang & Schwarz after it reported the results on Wednesday.
The group improved its 2022 earnings before interest and tax (EBIT), excluding special factors, 16.6% to €1.2 billion ($1.3 billion), reaching an EBIT margin of 13.2%. It expects the figure to come in 50 basis points above last year's level in 2023.
Sales in Beiersdorf's consumer business, which includes Nivea, Eucerin and La Prairie products, grew 8.8% to €6.1 billion last year.
Its Nivea core brand saw a 9.6% improvement, helped by rising demand in emerging markets and higher prices.
In its Tesa adhesives unit, which serves the electronics and automotive markets, sales increased 13.6% to €1.5 billion.
Solid demand for its consumer electronics products, a recovery in automotive markets and price increases helped offset significantly higher costs, the group said.
"2022 was an excellent year for Beiersdorf with a remarkable result for both business segments, Consumer and Tesa," said chief executive Vincent Warnery.
"For the first time in at least two decades, we delivered double-digit organic sales growth."
Beiersdorf said it would propose an unchanged dividend of €0.70 per share.
The news came as Britain's Reckitt Benckiser, maker of Dettol and Lysol cleaning products, beat full-year net revenue expectations, helped by its nutrition and health businesses.
Last month, the world's largest cosmetics company L'Oréal posted 8.1% sales growth for the fourth quarter, a touch slower than in the previous three months, with firm demand in the United States and Europe helping to offset coronavirus disruptions in China.