Beiersdorf AG

Group net sales were EUR 4.952 billion in H1 2026, with organic sales down 3.5%. Consumer net sales were EUR 4.113 billion, down 4.0% organically and 5.0% nominally, with EBIT of EUR 632 million and a 15.4% margin, down 60 basis points year over year. Consumer gross margin fell to 61.0% from 62.0% in H1 2025. Tesa net sales were EUR 839 million, down 0.9% organically and 2.1% nominally, with EBIT of EUR 136 million. Group gross margin was 58.3%, down 110 basis points; EBIT excluding special factors was EUR 768 million at a 15.5% margin; profit after tax was EUR 558 million and EPS was EUR 2.52. For 2026, management now expects Consumer organic sales to decline low single digits, Consumer EBIT margin to be at least 11%, Tesa organic sales to be flat to slightly growing with EBIT margin slightly below prior year, and group organic sales to decline low single digits with EBIT margin at least 11.8%.

Vincent Warnery said the first half was pressured by a volatile market, geopolitical disruption in the Middle East, and especially NIVEA underperformance. He framed the response as a deliberate reset: broader portfolio support for NIVEA, more accessible face care, more local execution, and a sharper consumer-facing investment push, with a clear goal of returning to profitable growth from 2028. His tone was candid but confident, repeatedly saying the team has learned from the last 6 months and is “pretty confident” in the new path, while acknowledging it will take time and disciplined execution.

Astrid Hermann walked through the financials and emphasized margin pressure from gross margin weakness, higher raw material costs, lower volume, and FX. Consumer gross margin fell 100 basis points to 61.0%, group gross margin fell 110 basis points to 58.3%, and marketing and selling expenses rose to 34.8% of sales, partly because the company is prioritizing consumer-facing spend; R&D also rose to 3.8% of sales, while G&A was reduced through cost discipline. She also highlighted that special factors were only EUR 8 million versus EUR 20 million a year ago, profit after tax was broadly stable at EUR 558 million, and EPS increased to EUR 2.52 supported by the share buyback. On capital allocation, management reaffirmed the EUR 750 million buyback commitment and said cash generation remains tied to a midterm free-cash-flow target of at least 50% of EBITDA.

Questions centered on whether Beiersdorf is overspending to fix NIVEA, whether the brand has lost relevance, how much of the sell-in/sell-out gap is due to retailer conflicts, and whether the company needs a broader operating-model or portfolio overhaul. Management said the NIVEA issue is mainly about rebalancing the portfolio, speeding innovation, and restoring accessibility, not a fundamental operating-model failure, while acknowledging they need to be more decentralized locally and less dependent on Hamburg for every decision. On retailer disputes, management said about 30% of the sell-in/sell-out gap is due to conflicts, and that deals now cover 92% of the European business, with no expectation of further disruptions or meaningful restocking. They also said Coppertone is being focused on sports and profitability rather than growth, and that the company does still want to acquire new brands, especially to reduce dependence on NIVEA over time.