Beiersdorf Reports Mideast Conflict Disrupting Gulf Deliveries

German consumer goods company Beiersdorf (ETR:BEIG) is experiencing disruptions to sales and deliveries in key Gulf markets due to the ongoing conflict in the Middle East, Chief Executive Vincent Warnery said on Monday.

Supply Chain Under Pressure

During a media call, Warnery stated that the Nivea-maker has been unable to deliver some of its products to Saudi Arabia and the United Arab Emirates. This directly affects the company's operations and revenue in two of its important regional markets.

"That’s something which is impacting not only our cost, but also our consumption," Warnery said. He expressed hope that a resolution to the conflict would allow business to return to normal. This follows a previous warning from the company in April that its sales in parts of the Middle East had been affected.

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Monitoring Input Costs

Beyond direct logistical challenges, Beiersdorf is also closely monitoring commodity markets. Warnery noted the potential for higher crude oil prices to increase the company's input costs, particularly for product packaging.

While oil prices have risen amid the geopolitical tensions, the CEO said that prices had not yet reached the levels the company had initially feared. This provides a small measure of relief against broader supply chain and operational headwinds.