Beiersdorf AG
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€713.00 | Xcxqdbh | Clt |
Beiersdorf Earnings: Slowing Consumer Organic Sales Growth Driven by La Prairie and North America
Narrow-moat Beiersdorf delivered first-half 2024 organic sales growth of 7.1% and an operating margin of 16.2%, 110 basis points below the prior year. Organic growth for the consumer segment decelerated substantially in the second quarter in Western Europe and North America, to around flat and negative 5%, respectively. The North American skincare market remained challenging, exacerbated by unfavorable weather conditions weighing on sales for the suncare business. Weakness in Western Europe was mainly attributed to a double-digit decline in travel retail sales for the ultraluxury brand La Prairie.