Beiersdorf has stopped investments in marketing and promotion in Russia due to the Ukraine war but will keep its business in the country as its products serve essential consumer needs, Vincent Warnery, chief executive said on Thursday.
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.
The CEO added the impact of war in Ukraine on Beiersdorf's operations is "not significant", so there is no reason to adjust the group's forecasts.
Competitor Henkel also said earlier in April it would continue its Russian business while stopping all investments, advertising and sponsoring measures.
Organic Group Sales
Last week, the Nivea-maker announced that its organic group sales increased by 10.3% in the first quarter of its financial year, to €2.2 billion, according to provisional data.
This growth is above current capital markets expectations, the Nivea-maker noted.
Organic sales in its consumer business segment increased by 11.6% year on year, with sales amounting to €1.8 billion.
The skincare giant said its 2022 full-year sales forecast for the consumer business segment, published in March of this year, remains unchanged in light of the current volatile market environment.
Beiersdorf anticipates sales growth in the mid-single-digit range for its consumer division.