UBS Report

Nivea Maker Beiersdorf Suffers Blow

  • Why it matters

    Why it matters

    • Beiersdorf has seen sluggish sales growth in recent years and faces tougher competition for consumer market share.
    • An analyst report by Swiss UBS chides the company for its lack of innovation and slow digital growth.
    • Investors pressure the company, known for its Nivea brand, to acquire a competitor but CEO Heidenreich wants to take it slow.
  • Facts

    Facts

    German Nivea skincare and Tesa adhesives maker Beiersdorf has faced pressure by investors over sluggish growth in recent years. A new analyst report and meager preliminary results could add to the mix.

  • Audio

    Audio

  • Pdf
Inside Beiersdorf AG Production Center And Nivea Haus Store
A shopper walks down the stairs at Nivea Haus in Hamburg, where the producer of the skincare brand, Germany's Beiersdorf, is based. Source: Bloomberg

It has not been a particularly invigorating start to the new year for Beiersdorf shareholders.

The consumer group, known for its Nivea skincare brand, was slapped with a peppery analyst report that temporarily gave its shares a hard time but also laid bare the company’s long-term challenges.

Analysts at Swiss bank UBS warned Beiersdorf will significantly lag behind its competitors in the coming years and is set for slower growth rates. Only serious investments in the group’s marketing budget, its digital business and innovative capabilities could prevent such a trend, the analysts said, but added they saw little indication for such a turnaround.

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