German consumer goods company Beiersdorf noted on Tuesday it expects sales to rise about 5% in 2022 after it reported a strong end to 2021 for its adhesives business, although its Nivea brand suffered due to COVID-19 lockdowns.
Beiersdorf predicted the global skin care market would continue to improve in 2022, but COVID-19-related challenges meant there was an unusually high degree of uncertainty about business prospects.
Beiersdorf shares were up 3.9% at 0825 GMT.
'Mid Single-Digit'
It forecast sales growth for 2022 in the 'mid single-digit' range after reporting an organic rise of 9.7% to €7.6 billion ($8.52 billion) in 2021.
It expects an operating profit margin around the same level as 2021, when it came in at 13%.
Beiersdorf expects its consumer business will see an operating margin slightly above the level of 2021, while it will be 'noticeably below' last year's level for the Tesa adhesives unit, which serves the electronics and automotive markets.
Jefferies analyst Molly Wylenzek said the guidance was positive, but noted that Nivea sales were weak, with growth slowing to 1.7% in the fourth quarter from 2.6% in the third.
"The turnaround of Nivea is becoming an increasingly urgent priority," she wrote in a note.
New Appointment
Beiersdorf appointed Grita Loebsack, who previously worked in marketing at Essilor, Unilever and L'Oréal, to the new position of global president of Nivea in December.
Chief Executive Vincent Warnery told analysts that the company planned a more global approach to product launches and marketing for Nivea, adding the brand was gaining market share, particularly for its face care products.
Last month, shares in the world's largest cosmetics company L'Oréal dropped as higher marketing spending put pressure on profitability, overshadowing forecast-beating sales and gains in market share.
Beiersdorf does not expect input costs to ease in 2022 and will raise prices globally in two rounds, but the consumer business, including Nivea, has started the year with accelerating growth, finance chief Astrid Hermann said.
News by Reuters, edited by Donna Ahern, Checkout. For more A-brand stories, click here. Click subscribe to sign up for the Checkout print edition.
