Beiersdorf has stopped investments in marketing and promotion in Russia due to the Ukraine war but will keep its business in the country as its products serve essential consumer needs, chief executive Vincent Warnery said on Thursday.
The German maker of personal care products also wants to avoid losing the market position of its brands, which is something of which Beiersdorf has "a long painful history," the CEO told shareholders during the company's annual general meeting.
The CEO added the impact of war in Ukraine on Beiersdorf's operations is "not significant", so there is no reason to adjust the group's forecasts.
Beiersdorf saw sales rise 9.7%, to €7.6 billion, in its financial year 2021, which CEO Vincent Warnery attributed to a number of "highly promising strategic steps" taken by company in this period.
The Nivea and Eucerin maker reported sales of €7.6 billion for the period, with its Consumer Business segment up 8.8% to €6.1 billion and tesa up 13.6% to €1.5 billion.
Competitor Henkel also said earlier in April it would continue its Russian business while stopping all investments, advertising and sponsoring measures.
Elsewhere, Reckitt Benckiser Group has commenced a process aimed at transferring ownership of its Russian business following the country's invasion of Ukraine.
Consumer companies from Nestlé to Procter & Gamble have come under tremendous pressure from consumers, employees, activist groups and politicians, including Ukrainian President Volodymyr Zelenskiy, over their presence in Russia.