Beiersdorf Stock: Profit Surge Amid Slower Growth Outlook

Beiersdorf reported impressive financial results for fiscal year 2024, with adjusted operating profit rising 8% to €1.37 billion, outpacing the 6.5% organic revenue growth that reached €9.85 billion. The company's Consumer segment performed particularly well with 7.5% organic growth to €8.16 billion, driven by strong performance from Nivea and Eucerin brands, despite ongoing challenges with luxury brand La Prairie. The adhesives division Tesa showed more modest growth of 1.9% to €1.69 billion, slightly below target range, yet managed to improve its profit margin to 16.3%. Overall, Beiersdorf's net profit jumped 24% to €928 million. Following these results, the company announced a new €500 million share buyback program scheduled to begin after the annual shareholders' meeting and conclude by year-end. Additionally, CEO Vincent Warnery's contract has been extended through 2030.

Conservative Outlook for 2025

Looking ahead, Beiersdorf projects a more conservative growth trajectory for 2025, forecasting organic revenue growth of 4-6% group-wide and in the Consumer segment, down from 2024's performance. The Tesa division expects even more modest growth of 1-3%, heavily dependent on automotive industry developments. Despite these tempered growth expectations, the company aims to slightly improve its adjusted operating margin above last year's 13.9%, with Consumer segment margins targeted to increase by 50 basis points while Tesa's margin is expected to dip slightly to around 16%. Management remains confident about outperforming the market, citing a strong innovation pipeline and anticipated recovery in luxury brands, though potential U.S. import tariffs present uncertainties for both supply chains and the adhesives business.