Beiersdorf: Stellar Consumer Segment Growth Leads to Another Increase in Sales Guidance

Narrow-moat Beiersdorf largely maintained its growth momentum in third-quarter 2023, delivering organic sales growth of 11.2% for the first nine months, compared with 12.3% in the first half. The performance was driven by the consumer segment, with year-to-date organic sales growth of 13.6%, while the Tesa segment's performance continued to be muted, posting year-to-date organic sales growth of 1.3%. In light of strong growth momentum, its full-year guidance for the consumer segment was increased once again. Management now expects low-double-digit organic sales growth for the segment, compared with a high-single-digit to low-double-digit range previously. Our forecast already called for 13% organic sales growth for the consumer segment in 2023, so we make no changes to our model and confirm our EUR 100 fair value estimate. We believe shares are expensive at current levels.