Beiersdorf Reports Sales and Delivery Disruptions in Gulf States Due to Mideast Conflict

German consumer goods giant Beiersdorf AG stated Monday that conflict in the Middle East is disrupting sales and product deliveries in key Gulf markets. Chief Executive Vincent Warnery confirmed the company has been unable to deliver some products to Saudi Arabia and the United Arab Emirates due to the ongoing geopolitical tensions.

Supply Chain and Sales Impact

During a media call, Warnery detailed the direct effects of the regional conflict on the Nivea-maker's operations. "That’s something which is impacting not only our cost, but also our consumption," he said, according to Reuters.

The announcement follows a previous warning from Beiersdorf in April, when the company first noted that sales in parts of the Middle East were being sharply affected. Warnery expressed hope for a swift resolution to the hostilities "in order to get back to normal business."

Input Costs and Corporate Outlook

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Beyond direct sales, Beiersdorf is closely monitoring volatile energy markets for secondary effects. Warnery highlighted the potential for higher crude oil prices to increase input costs, particularly for the large amounts of plastic packaging the company utilizes.

While oil prices rose following an escalation in fighting, he said they had not reached the levels Beiersdorf had feared, calling it "the good news." However, he acknowledged that sustained price increases would eventually filter through to the company's cost base.

The operational challenges contributed to Beiersdorf trimming its full-year outlook on Monday. The company cited a "difficult market environment" and a slower-than-expected recovery at its flagship Nivea brand for the revised forecast.