Nivea maker Beiersdorf said it expected organic growth to slow in the current year, citing weaker demand in the global skin care market.
Beauty firms are reeling from a growth slowdown from the second half of 2024 and into the new year, exacerbated by soft demand in key market China and inventory reductions at travel retailers and in the US.
Competitors, such as French L'Oréal and US-based rival Coty posted weaker-than-expected quarterly sales in their latest reports.
The German company expects organic sales to grow between 4% and 6% in 2025, down from a 6.5% rise to €9.9 billion ($10.37 billion) it reported for the previous year.
The company had forecast organic sales growth of between 6% to 8% in 2024.
Beiersdorf core skincare brands, such as Nivea and Eucerin remained resilient but weakness in Chinese demand for luxury products and shifting consumer preferences in the region have weighed on the company's luxury brand revenue.
While sales at its Nivea brand and skincare business increased 9.0% and 10.6% respectively in the past year, its premium brand La Prairie recorded a 6.2% drop in sales.
The company also said it extended the contract of its CEO Vincent Warnery until the end of 2030.
Share Buyback Programme
Beiersdorf also announced the launch of a share buyback programme of up to €500 million ($524.85 million) in 2025.
The programme is expected to commence after the company's 2025 annual general meeting and conclude by the end of the year.
In October, the firm reported a rise in group sales for the first nine months of 2024, and said it expected a strong fourth quarter despite persisting challenges in the Chinese luxury market.
The German skincare company also completed a €500 million share buyback programme in 2024.
