Beiersdorf to invest USD 408M in Mexico plant expansion
This move is part of Beiersdorf’s broader strategy to boost production capacity, supply chain resilience, and sustainability in response to growing global demand for personal care products.
USA – Beiersdorf is set to invest €350 million(USD 407.5 million) in expanding its manufacturing plant in Silao, Guanajuato, Mexico.
This significant investment reinforces Mexico’s role as a strategic manufacturing and export hub for the company, with around 70% of the plant’s production destined for international markets.
The expansion aims to promote quality jobs, implement advanced technologies, and strengthen Beiersdorf’s commitment to sustainability, aligning with the company’s goal of achieving carbon neutrality by 2045.
Beiersdorf’s operations in Mexico focus on skin care products under well-known brands such as NIVEA, Eucerin, and Labello, serving markets in Mexico, Central America, and North America.
The investment also highlights the importance of Mexico within Beiersdorf’s global production network, complementing expansions in other countries like Poland and Brazil.
This move is part of Beiersdorf’s broader strategy to boost production capacity, supply chain resilience, and sustainability in response to growing global demand for personal care products.
Beiersdorf H1 FY25 financial performance
Beiersdorf has posted €5.2 billion(USD 6.03 billion) in sales for the first half of 2025, reflecting a modest organic growth of 2.1% compared to the previous year, but a marked slowdown from the 7.1% organic growth seen in H1 2024.
This slower market growth, particularly evident in the global skin care sector, led the company to adjust its full-year guidance to expect around 3% organic sales growth, down from an earlier forecast of 4%-6%.
The operating result (EBIT), excluding special factors, was €836 million (USD 971.68 million), slightly below the prior year’s €838 million(USD 974 million), with a marginal decline in EBIT margin from 16.2% to 16.1%.
Profit after tax declined to €561 million (USD 651.94 million) from €590 million (USD 682.11 million) in H1 2024.
Despite these pressures, investments rose, with capital expenditure climbing from €171 million (USD 198.72 million) to €214 million (USD 248.69 million), underlining Beiersdorf’s commitment to innovation and growth even amid softer market conditions.
The consumer business, which accounts for roughly 84% of group sales, experienced an organic growth of 1.9%, with strong performances from derma brands like Eucerin and Aquaphor growing 11.4%.
NIVEA grew modestly at 2.5%, while the luxury brand La Prairie declined 17.5%, facing challenges from a tough market environment in China and decreased travel retail demand.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
