Drop in Beiersdorf's Stock Price: The Cause Behind It
Beiersdorf, the German skincare giant behind the iconic Nivea brand, is gearing up for a significant growth spurt in the second half of 2025, thanks to the launch of two groundbreaking anti-aging products in 30 countries worldwide.
Analyst David Hayes of US bank Jefferies has expressed concerns about Beiersdorf's innovation strategy, as the core brand Nivea's business shrank by around half a percent in the second quarter. However, the company's board has decided to continue with planned investments in the Consumer segment, confident that these product launches will ensure success.
The two anti-aging products expected to drive sales are part of Beiersdorf's strategic focus on scientific leadership and sustainability. The NIVEA Cellular Epigenetics Rejuvenating Serum, featuring the breakthrough ingredient Epicelline®, and innovations from its partnership with Vincere Biosciences targeting mitophagy, are set to be major growth drivers for the company. These products leverage advanced science in cellular health and epigenetics, aiming to rejuvenate skin and reverse signs of aging.
The Eucerin brand, meanwhile, is expected to see a significant boost from two main anti-aging products. These developments are expected to put Nivea back on a growth trajectory.
Despite some slowdown in NIVEA brand sales and challenges in luxury brand La Prairie, Beiersdorf remains optimistic about its 2025 outlook. Over 45% of 2025 sales are projected to come from new or relaunched products, emphasizing the critical role these anti-aging innovations play in the company's strategy.
Large bank UBS and Deutsche Bank have maintained their rating for Beiersdorf's stock at "Sell," while other institutions, including Jefferies, recommend buying. Research firm Warburg maintains its rating for Beiersdorf at "Buy" with a price target of 180 euros.
Jörg Philipp Frey, an analyst from an unspecified institution, called Beiersdorf's profit warning a disappointment, but expects growth to accelerate in the second half of the year thanks to these new products. Beiersdorf's head of nearly 23,000 employees worldwide shares this optimism, anticipating accelerated growth in the second half of the year.
Beiersdorf has been investing heavily in research and development, including the launch of an Innovation Center on the company's premises in Hamburg Lokstedt in June. This commitment to breakthrough ingredient technologies, along with its focus on sustainability, aims to maintain and grow the company's market share through superior skin health solutions.
In summary, Beiersdorf's investments in advanced anti-aging science and new product launches with innovative key ingredients are anticipated to meaningfully contribute to revenue growth in 2025, counterbalancing some segment-specific slowdowns and underpinning the company's longer-term competitive position in the global skincare market.
- Beiersdorf's new anti-aging products, such as the NIVEA Cellular Epigenetics Rejuvenating Serum and innovations from its partnership with Vincere Biosciences, are part of its strategic focus on scientific leadership and sustainability in the health-and-wellness sector.
- The Eucerin brand, with its two main anti-aging products, is expected to see a significant boost, helping Nivea regain its growth trajectory in the business arena.
- The company's investments in science, innovation, and sustainable practices in personal-finance and technology sectors will provide breakthrough ingredient technologies and superior skin health solutions, maintaining and growing its market share.
- Despite some analysts maintaining a "Sell" rating for Beiersdorf's stock, research firm Warburg believes in the company's potential and expects its stock to reach 180 euros.
