THE WHAT? Beiersdorf has stated it remains ‘cautiously optimistic’ about 2020 despite another quarter of slowing sales for its skincare and adhesives unit, according to a report by Reuters.
THE DETAILS Shares of the company fell this week following news of a slowdown of sales for the Nivea and La Praire brands.
Group organic sales growth fell to 4.1 percent for 2019, down from a 4.3 percent growth for the first nine months.
The consumer segment reported full-year sales growth of 4.8 percent, down from 5.1 percent in the first nine months. Annual sales hit 7.653 billion euros ($8.53 billion).
Taking to a statement, Chief Executive Stefan de Loecker, said, “Even though we expect headwinds in the 2020 financial year… we … are looking forward to the fiscal year ahead with cautious optimism.”
THE WHY? The growth slowdown is put down to consumers moving away from mass market brands such as Nivea in favour of niche options, along with products containing natural ingredients.
To this end Beiersdorf has launched an innovation unit to place a greater focus on the development of indie brands.