Nivea-maker Beiersdorf's 2026 margin forecast disappoints investors

By Anna Peverieri and Bernadette Hogg

March 3 (Reuters) - Shares in Beiersdorf BEIG.DE dropped more than 12% on Tuesday after the Nivea-maker forecast a slightly lower 2026 core operating profit margin the night before, disappointing already cautious investors.

The German consumer goods group expects 2026 sales to be flat or grow slightly on an organic basis, while its operating margin, excluding special items, is expected to be slightly below last year's 14.0%. It said raw material cost increases and unfavourable foreign exchange effects would weigh on the results.

While the market had expected a cautious outlook, no growth and the potential for falling margins was a negative surprise, a local trader said. Analysts from J.P. Morgan also said the outlook was disappointing.

The group said it expected first-quarter results to come in below the full-year range, citing disruptions in the U.S. retail and China travel retail landscapes.

Competitor L'Oreal OREP.PA had also reported problems in Chinese travel retail for the fourth quarter of 2025, but said the country had made a return to positive luxury consumption.

As of Monday's close, Beiersdorf's shares were up more than 11% this year, outperforming the broader sector which was up around 9%. Those gains were wiped off on Tuesday.

The company said on Monday it would launch a share buyback programme of up to 750 million euros ($877 million) over the next two years.

The group's sales rose 2.5% organically to 9.9 billion euros in 2025, but sales of its flagship Nivea brand grew only 0.9%. Earnings before interest and taxes, excluding special factors, rose slightly to 1.38 billion euros.

Jefferies said in a note Nivea's weaker-than-expected fourth-quarter growth would raise concerns over what was required to improve performance at the core brand.

Beiersdorf plans to refocus Nivea on its popular face care products at a more accessible price range, as these products perform well in specific local markets, while broadening its range of deodorants and body care products, group CEO Vincent Warnery said in a call on Tuesday.

($1 = 0.8550 euros)