Beiersdorf (BEI GR) Germany
Consumer Staples
BEI trades at an unwarranted 30% discount to L’Oreal - Alex Dwek sees untapped improvement potential for Nivea under a new leadership team focused on globalising / modernising the brand with bigger, fewer, and more impactful innovations and global marketing campaigns strategically focused on skin care to accelerate growth in large markets like China and the US. Alex also expects Eucerin to gain market share in dermocosmetics (a market growing double digits) and La Prairie to grow in the luxury segment. He forecasts MSD revenue growth for the foreseeable future and a margin expansion reaching 15.5% by 2025.
Edition: 175
- 08 December, 2023
L'Oreal (OR FP) France
Consumer Staples
100% of retailers interviewed by Woozle reported that the cosmetics giant is “clearly strategically outperforming” competitors such as Estee Lauder and Beiersdorf brands, due to quicker innovation and better positioning around the natural, sustainable themes for self-care products. Woozle's latest channel checks (across US, Europe and Australia) suggest OR is trading ahead of consensus forecasts in 1Q23, driven by outperformance in L'Oreal Luxe and Consumer Products, partly offset by weaker than forecast Active Cosmetics sales growth. On the subject of pricing, respondents reported an average increase of 10% Y/Y for OR brands (vs. 7% increase for EL).
Edition: 155
- 03 March, 2023