Nivea crosses €5 billion mark, offsetting decline in Beiersdorf luxury goods

Nivea maker Beiersdorf's organic sales rose 10.8% to 9.5 billion euros in fiscal 2023. Sales of the group's flagship brand Nivea, which includes lip balm umbrella brand Labello, exceeded the €5 billion mark for the first time in its history. The mass-market skincare brand posted nominal sales of €5.2 billion, up 16.2% organically.

Beiersdorf attributed the surge in sales to Nivea's performance in the facial care segment, particularly Nivea's Luminous range, which it said was outperforming the market.

The company's Derma business, which includes Eucerin and Aquaphor, was another success story in 2023, with organic sales growing 24% and nominal sales reaching €1.3 billion. Beiersdorf said this was due to strong performance in the sun care category and continued expansion of e-commerce. Derma is also popular for products containing Eucerin’s core ingredient thiamide alcohol (INCI: Isobutylamido thiazolyl resorcinol), a tyrosinase inhibitor, that is, skin lightening agents that control melanin production.

Strong performance in 2023 at the Nivea and Derma businesses helped offset poor performance at Beiersdorf luxury brands La Prairie and Chantecaille. La Prairie's organic sales fell 15.4% in the financial year, while Chantecaille's organic sales fell 18.4% due to difficulties in travel retail and mainland China. Beiersdorf expects La Prairie and Chantecaille to return to growth in 2024.

The company attributed this to healthier inventory levels and product innovation, enhanced social commerce systems and the expansion of its luxury brand travel retail business.

The German conglomerate's outlook for 2024 predicts slower growth, with organic group sales expected to rise in the mid-single-digit range this year. Shares fell 3.9% to €132.4 this morning on the news.