THE WHAT? Shares in Nivea maker Beiersdorf have fallen 6.3 percent this week after management remained cautious over Q4 results despite strong sales in the third quarter, according to a report by Reuters.
THE DETAILS Beiersdorf reported a 0.2 percent organic sales rise in Q3, however, revenue for the nine months ending 30 September fell 7.1% to €5.24bn on an organic basis.
Skincare fared well in the period, with Nivea up 0.5 percent, while Eucerin and Aquaphor grew 15.5 percent.
Writing in a note, Jeffries analysts said, “Q3 organic growth came in much better than we or the market expected with better results in both the consumer and Tesa divisions. Full-year guidance was reinstated implying flat growth in Q4.”
THE WHY? The shares fall followed comments from CEO Stefan de Loecker, who gave a downbeat prediction that consumers were likely to reduce shopping once again as lockdowns get re-imposed due to COVID-19 restrictions.
While de Loecker stated the company was sticking to its Care+ strategy and investments, finance head Dessi Temperley stated it was not in a position to reaffirm medium-term margin targets.