Beiersdorf, Share Value Fell

Share Value Fell After Warning of Slower Growth

Beiersdorf AG, the German consumer goods company known for its Nivea skin care brand, saw its share price fall by 5% in early trading on Tuesday after warning of slower growth in the coming months.

The company said that it expects sales growth to slow to around 4% in the second half of the year, compared with 7% in the first half. Beiersdorf also said that it expects its operating profit margin to decline by around 1 percentage point in the second half of the year.

Reasons for the Slowdown

Beiersdorf cited a number of factors for the expected slowdown, including the war in Ukraine, the rising cost of raw materials, and the ongoing COVID-19 pandemic.

The war in Ukraine has disrupted supply chains and led to higher energy prices, which have increased the cost of production for Beiersdorf. The rising cost of raw materials has also put pressure on Beiersdorf's margins.

The ongoing COVID-19 pandemic has also had a negative impact on Beiersdorf's business. The pandemic has led to lockdowns and travel restrictions, which have reduced demand for Beiersdorf's products.

Outlook for the Future

Despite the expected slowdown in growth, Beiersdorf said that it is confident in its long-term prospects. The company said that it is investing in new products and markets, and that it is committed to maintaining its position as a leading global consumer goods company.

Beiersdorf's share price has fallen by around 20% since the start of the year. However, the company's shares are still trading at a premium to the wider market.