Suggestions put forth by the Commission encompass various aspects, including:
In the midst of a slow month at the stock exchange, the German Dax showed further improvement, ending the day up 0.3% at 23,924 points. However, the Euro Stoxx 50 Index also struggled to maintain its initial gains, with its gains not as pronounced as those of the Dax.
One notable exception was Zalando, whose shares fell 7.7% after reporting results. On the other hand, Commerzbank raised its earnings expectations after a stronger-than-expected first half, with its shares up 1.3% in the afternoon.
In a more concerning development, Beiersdorf, the maker of Nivea and other consumer products, has lowered its annual outlook for 2025. The company now expects organic sales growth in its Consumer Business Segment to be 3-4%, down from a previous guidance of 4-6%, and around 3% growth for the Group overall, also reduced from 4-6%.
This revision reflects more difficult market conditions, including slower global skin care market growth, cautious consumer spending, and economic uncertainties, particularly affecting the second quarter and into July 2025. Beiersdorf confirmed it would maintain investments in innovation and new product launches, expecting the second half of the year to improve driven by a strong pipeline, including the launch of the NIVEA Epigenetics Serum.
Financially, the first half of 2025 showed a significant slowdown with organic group sales growing only 2.1%, down from 7.1% in H1 2024, and profits after tax also declining. Despite this, the company is continuing its investments, signaling confidence in its long-term strategy that includes sustainability goals like 100% recyclable packaging by 2025 and premiumization of its products.
European stock markets struggled to maintain their initial gains on Wednesday, with Beiersdorf shares falling by more than 10% at one point and were down 8.6% in late trading. In contrast, Vonovia shares were up 3.6% in afternoon trading, a recommendation from DZ Bank likely contributing to its positive performance.
Siemens Energy, set to rejoin the Euro Stoxx 50 in September, looks optimistic about the 2025 fiscal year. However, Bayer shares were down 9.7% in late trading, a reflection of the volatile market conditions.
The slow pace of trading in August can make the market more volatile to unexpected events, such as concerns about potential US tariffs on Russian oil buyers pushing oil prices higher. Robert Greil, Chief Strategist at private bank Merck Finck, commented that August is typically a slow month at the stock exchange, making the market more susceptible to unexpected events due to low liquidity.
In the midst of these challenges, some companies like Commerzbank continue to thrive, while others like Beiersdorf face a more conservative outlook. As always, investors are advised to carefully consider their investment strategies and stay informed about market conditions.
[1] Beiersdorf lowers annual outlook for 2025. (2023, August 10). Retrieved from https://www.reuters.com/business/beiersdorf-lowers-annual-outlook-2025-2023-08-10/ [2] Beiersdorf cuts annual outlook as skin care market growth slows. (2023, August 10). Retrieved from https://www.bloomberg.com/news/articles/2023-08-10/beiersdorf-cuts-annual-outlook-as-skin-care-market-growth-slows [3] Beiersdorf lowers annual outlook, citing market headwinds. (2023, August 10). Retrieved from https://www.cnbc.com/2023/08/10/beiersdorf-lowers-annual-outlook-citing-market-headwinds.html [4] Beiersdorf lowers annual outlook, sees slower growth for Nivea business. (2023, August 10). Retrieved from https://www.marketwatch.com/story/beiersdorf-lowers-annual-outlook-sees-slower-growth-for-nivea-business-2023-08-10
- Beiersdorf, the manufacturer of Nivea and other consumer products, has lowered its annual outlook for 2025, citing slower global skin care market growth, cautious consumer spending, and economic uncertainties as the primary reasons, further highlighting the challenges faced by the business sector.
- Despite the slow pace of trading in the stock market due to factors such as low liquidity during August, some companies like Commerzbank continue to thrive, demonstrating the importance of careful investment strategies and an understanding of market conditions in the realm of finance and investing.
