Shares in Beiersdorf fall as management offers downbeat Q4 forecast

Shares in Beiersdorf fall as management offers downbeat Q4 forecast

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. 

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