Bayerische Motoren Werke AG lowers 2026 outlook due to cost and exchange rate pressures

Investing.com - Beiersdorf expects slower growth in 2026 due to rising raw material costs and unfavorable exchange rates. The Nivea manufacturer stated that organic net sales are expected to remain flat or slightly increase in 2026. According to RBC Capital Markets, this is below the market consensus growth rate of 3.7%.

The company also anticipates that the EBIT margin, excluding special items, will be slightly below 2025 levels.

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Management also noted a sluggish start to the year, citing disruptions in the U.S. retail channels and Chinese travel retail business, which may cause first-quarter results to fall below the full-year outlook.

In 2025, organic sales are projected to grow by 2.5% to €9.9 billion, while full-year EBIT, excluding special items, is expected to slightly increase from €1.37 billion to €1.38 billion. Nivea’s growth remains modest, with organic sales increasing by 0.9%.

CEO Vincent Warnery stated, “In a challenging mass-market environment, Nivea’s growth has slowed. Therefore, we have initiated a focused rebalancing of the Nivea product portfolio to restore growth momentum over time.”

The company said the rebalancing began in the second half of 2025, with adjustments to innovation and marketing investments expected to continue into 2026 and 2027.

Beiersdorf also announced plans for a share buyback of up to €750 million over the next two years.

RBC Capital Markets analysts emphasized that the key focus is on the company’s guidance for 2026.

They also noted that the weak first-quarter performance is worth monitoring. The analysts wrote, “After the company described the launch of Nivea Epicelline as ‘the largest launch in Nivea facial care history,’ we find the lack of follow-up performance in Q1 surprising.”