Beiersdorf Continues to Deliver Strong Sales Growth in Q3 With its Recession-Resistant Portfolio

Narrow-moat Beiersdorf’s third-quarter trading update offered little surprise, with the group reporting organic sales growth of 11% in the quarter compared with the previous year. Following another quarter of strong topline delivery, management increased the full-year guidance for organic sales growth for the consumer segment to a range of 9% to 10% from a high mid-single-digit previously. We already forecast 10% organic sales growth for the segment in 2022, and therefore we make no change to our EUR 90 fair value estimate. Despite a marginal share price correction on the day, shares still strike us as expensive and we recommend investors wait for a better entry point.