Hot summer boosts demand for a variety of skin care products from Nivea, a brand owned by Beiersdorf, said the world’s leading manufacturer of sunscreens. That contributed to larger than expected sales growth in 2018.
In particular, the German company now expects total per annum sales growth of 5%, compared with an earlier forecast of 4%, thanks to stronger-than-expected first half of the year.
Chief Executive officer, Stefan Heidenreich, told reporters that he also believes in a favorable second half of 2018 for Nivea, partly thanks to the successful launch of a new packaging design for its deodorant, the largest category of brand.
According to Heidenreich heat, which is currently affecting the Northern hemisphere, increases sales of sunscreen 20-30%, and also helps to sell more deodorant and shower products.
But he warned that it is too early to say how much influence the weather at Beiersdorf, noting that in some parts of southern Europe the summer started relatively late, for example, in Spain sales fell at that time, as the Northern European countries suffered from the heat.
Sales of Nivea brands in the first half rose by 3.5% in the first quarter they increased by 1.9%, according to analysts, it was the slowest pace of growth in the last three years, but this tendency was overcome by launching a new packaging for deodorant.
Meanwhile, the company’s stock price remains volatile. This is due to the fact that the shares came under pressure in June when Beiersdorf said that Mr. Heidenreich will retire at the end of 2019, which would be already the second resignation in the Board in the company this year. However, it was during the leadership of Mr. Heidenreich Beiersdorf introduced a new Nivea logo, focused on emerging markets, ceased production lines inefficient and regained its position in the market. In addition, Beiersdorf is expanding its potential in e-Commerce of China, through its new partnership with the online platform NetEase Kaola in China.