Key facts
- Beiersdorf reported that the Middle East conflict is disrupting sales and deliveries in key Gulf markets.
- CEO Vincent Warnery stated that some products could not be delivered to Saudi Arabia and the United Arab Emirates.
- The company is monitoring oil markets for potential impacts on packaging and other input costs.
- Beiersdorf had previously warned in April that Middle East sales were affected by the conflict.
- The company trimmed its full-year outlook, citing a difficult market environment and slower recovery for its Nivea brand.
Beiersdorf, the company behind the Nivea brand, has announced that the ongoing conflict in the Middle East is causing disruptions to its sales and deliveries in significant Gulf markets. Chief Executive Vincent Warnery indicated that the company has been unable to deliver certain products to Saudi Arabia and the United Arab Emirates due to the conflict.
Warnery expressed hope for a swift end to the conflict to restore normal business operations. He also mentioned that Beiersdorf has been closely observing oil markets due to the potential for higher crude prices to affect packaging and other input costs. While oil prices have risen, they have not yet reached the levels the company had feared, which Warnery described as positive news. However, he cautioned that sustained increases in oil prices would eventually impact costs, particularly given the company's significant use of plastic packaging.