Nivea owner Beiersdorf said it expects its 2022 revenue to reach the upper end of its forecast and announced new mid-term goals including growth above the market as it has benefited from strong sunscreen and face care demand.
In the medium term, the company expects to grow organic sales above market level and increase its earnings before interest and taxes (EBIT) margin by at least 50 bps each year from 2023, chief executive Vincent Warnery told investors.
The group, which saw a strong performance at its core Nivea brand in the second quarter with face care outperforming body care, will also look to invest in new acquisitions to fill gaps in its offer, the CEO said at Beiersdorf's Capital Markets Day on Thursday (9 June 2022).
In April, the Nivea maker cut the forecast for full-year 2022 sales at its adhesives unit due to extensive lockdowns in China and ongoing supply chain issues in the automotive industry.
It also announced plans to stop investments in marketing and promotion in Russia due to the Ukraine war but said it would keep its business in the country as its products serve essential consumer needs.
The German maker of personal care products also wants to avoid losing the market position of its brands, which is something of which Beiersdorf has "a long painful history," the CEO told shareholders during the company's annual general meeting.