Beiersdorf Ag

Good morning everyone and thank you for joining us for our full year 2025 results conference. I'm pleased to present an overview of our performance together with Astrid, who will later provide a detailed financial review. But before we begin, I want to touch on the situation in the Middle East. In situations like these, the safety of our employees and their families is our highest priority. Teams are in place in the regions to offer assistance and support on the ground, and we are in close communication with them. Given the volatility of the situation, it is too early to assess any potential impact on our business. We hope for a peaceful solution soon. Let me now turn to our full-year 2025 results. 2025 was a year that demanded a lot from us. Economic and geopolitical uncertainties, shifting consumer behavior, and continued trade disruptions negatively affected market dynamics. Skincare market growth slowed to levels not seen in recent history, with particularly strong effects in the emerging markets region. These conditions shaped and challenged our performance more than anticipated at the start of the year. Even though we continued to make progress in several important areas, and where we fell short, we took immediate action. At the same time, 2025 showed that the core elements of our strategy remain effective, our focus on science-based innovation, our global footprint and expansion into new markets, our culture of care and responsibility. This provided important stability throughout the year. In the challenging market environment, we were able to maintain our position as the best performing skincare company globally for the third year in a row. Once again, our derma business was a disputed success, driven by innovation, wide space expansion, and strong scientific credibility. La Prairie showed initial signs of improvement toward the end of the year, but the recovery remains fragile in a volatile luxury market, and disruptions in the retail landscape negatively impact Q1 2026. And while our skincare focus strategy has delivered on many fronts, the most recent performance of Nivea requires a strategic rebalancing. We have taken decisive actions, laying the foundation for restoring momentum and returning our business to a more attractive and profitable growth trajectory. In 2025, the global skincare market slowed significantly, decelerating from mid-single-digit growth in 2024 to around 1.5 to 2%. This slowdown intensified as the year progressed and was particularly visible in regions that had driven strong growth in previous years, including Eastern Europe and emerging markets. Pricing normalized after inflation-driven increases, geopolitical tensions influenced consumer sentiment, and consumers became more cautious and increasingly selective in their routines. While Biosdorf was affected by this market slowdown in 2025 and continues to feel its impact in 2026, we are still able to deliver solid growth in a significantly more challenging environment. Nivea ended the year with an organic sales growth of 0.9%, reflecting the impact of weaker market dynamics, a repositioning of our business in China, as well as a back-end-loaded innovation pipeline. Our Derma business delivered double-digit growth for the fifth year in a row, supported by breakthrough innovations and successful expansion into wide spaces. Our healthcare business continued to perform strongly with close to double-digit growth, providing further evidence for our innovation-driven strategy. At La Prairie, organic sales declined by 4.5% in 2025. The performance improved quarter after quarter, but market conditions remained volatile. TESA delivered moderate growth of almost 2%, driven by a strong performance in the electronic business. Altogether, our skincare business grew by 3.7%, clearly ahead of the market. Once again, we outperformed our key competitors in this segment and remained the best performing skincare company globally. This performance underscores the strengths of our skincare expertise and its ability to deliver sustained outperformance. Let's dive a little deeper into our derma business. The undisputable success story of our dermabrands Eucerin and Aquaphor continued in 2025. Net sales reached a record €1.5 billion, approaching close to 20% of consumer net sales, supported by continuous market share gains in a market growing only at low single digit rates. In Q4, facing a tough comparison with the epistiline launch in the prior year, derma still grew by nearly 10%. DERMA growth in 2025 was broad-based across all regions. In Europe, our home market, DERMA delivered an impressive 8.3% organic sales growth as epicillin continued to drive the performance. In North America, our largest DERMA market, we grew by nearly 9% and outstanding results driven by face care and radiant tone, our Tiamidal product in the US. In emerging markets, at 16.3% organic sales growth, Thailand, Mexico, and Brazil were the key performance drivers. In addition, India, domestic China, and Japan were important wide spaces that we expanded into. We also continued to outperform competition. This is a testament to the success of our science-based growth strategy of launching breakthrough innovations and successfully expanding into wide space opportunities. Our innovation, our hero ingredients, tiamidol and epicillin, are continuing their success stories. Tiamidol in its eighth year continued to grow at double digit rates. In early 2025, we launched it in the US and later in the year, we brought this innovation to the domestic Chinese market. Episeline, our anti-aging breakthrough ingredient, continues the successful rollout across Europe and in emerging markets. Our derma innovation pipeline remains strong and sets industry standards. The entry into white spaces has unlocked new growth opportunities for Usurin. Let me share a few examples. In India, Usurin's launch generated strong momentum. It was one of the first global dermocosmetics brands to enter the market and quickly became a top dermatologist's recommendation. In China, following regulatory approval, Usurin Tiamidol Serum was launched on the domestic market and has become the number one derma anti-pigment serum. And in Japan, we introduced Eucerin, marking another important milestone. As the world's third-largest cosmetics market, expectations for quality and innovation are extremely high. For this debate, we developed a premium anti-aging line tailored to local consumer needs. Our healthcare brands, Onzerplast and Elastoplast, delivered one of their strongest years in history with organic sales growth of more than 9%. The launch of our second skin protection plaster illustrates how we continue to drive innovation even in mature categories. This advanced technology offers superior healing and protection. It is setting a new benchmark in wound care and resonates strongly with consumers. We continue to invest in research and development to reinforce our leadership in this segment with new innovations coming soon. Nivea faced a particularly challenging year, navigating difficult market conditions and delivering growth below our initial expectations. There were three key factors behind this development. First, the market slowdown was more severe than we expected. Second, we completed a comprehensive repositioning of our business in China, which temporarily affected our performance negatively. And third, most of our major innovations were scheduled for the second half of the year, which limited momentum early on. In 2025, the mass market for skin and personal care products slowed significantly. The decline was most notable in emerging markets where value growth rates more than half versus 2024 and further deteriorated throughout the year, with volume growth turning negative in Q4. Skin and personal care were most affected than other beauty categories. This had a direct impact on EVF's performance over the year. The speed and scale of the market downturn exceeded our initial assumptions, requiring adjustment to our guidance during the year. In China, we successfully completed a fundamental repositioning of Nivea to prepare the brand for long-term success in this key market. Our strategy in China is clear. We aim to win through innovation in skincare. Therefore, we shift our focus away from price-sensitive personal care categories and partners, prioritizing premium skincare and accelerating growth through digital-first channels. This involved streamlining our portfolio, optimizing distribution, and tailoring innovation to local consumer needs. These measures were completed by the end of the third quarter, and Nivea is now better positioned to compete in China's dynamic market and capture future opportunities. Subsequently, we launched YAMIDO London Nivea in a domestic Chinese market, leading to impressive double-digit growth rates of Nivea in the fourth quarter. Our innovation pipeline in 2025 was strong, as the major launches were concentrated late in the year. As a result, the contribution for innovation to our full-year performance was limited, particularly in the first half. The rollout of breakthrough innovations, such as EPICELINE, began to contribute in the latter part of the year, especially in Q4. In 2025, we launched Episenin on the mass market. Our Nivea Cellular Epigenetic Serum represented the strongest Nivea face care rollout in our history. The selling performance has been strong and in line with our expectations, reflecting robust retailer demand and effective distribution. We also saw very good sell-out momentum. The product quickly reached number one positions at leading retailers and continues to be the number one serum across Europe. Rehabilitable data on consumer repurchase rates is not yet available, given the recent launch. This will be a key metric to monitor in the coming months to assess long-term consumer loyalty and the sustained performance of Epicellin in the mass market. Our luxury brand La Prairie represents a smaller share of our business, but it remains a strategically important part of our portfolio. The full year remained below 2024 levels, but as we had expected, the business showed a sequential improvement quarter over quarter, growing plus 3.8% in Q4. This was mainly driven by more favorable improvements in China, particularly in e-commerce. At the same time, the luxury market remains highly volatile, with persistent weakness in the US and in travel retail markets. Ongoing disruptions in the US department store landscape, as well as travel retail in China, are expected to negatively impact our performance in the first year of 2026. With that, let me hand over to Astrid to walk you through Teza and our financials.

Thank you, Vincent, and good morning from my side as well. Let me start with the performance of our Teza business. In 2025, Teza delivered organic sales growth of 1.8% in a challenging global economic environment characterized by tariff disruptions and ongoing challenges in the automotive industry. Within our industry segment, electronics was again the main growth driver, with particularly strong results in Greater China and Asia Pacific. The product ranges from mounting front and back modules, solutions for battery bonding, and conductive tapes were further developed and converted into customer-specific solutions. The automotive business closed the year broadly in line with the prior year. Ongoing volatility in Europe and North America continued to weigh on the performance, while China and Latin America delivered growth supported by successful customer projects. Printing and packaging solutions also recorded year-on-year growth. The performance was driven by expanded activities in splicing tapes and flexographic printing, with notable contributions from North and Latin America and continued positive development in China. Finally, the consumer segment delivered growth despite a challenging market environment, especially in Europe. E-commerce showed strong year-on-year development and made a meaningful contribution to the overall result. Let me now walk you through our 2025 financial performance. Overall, we delivered a stable performance in a challenging market environment with organic sales growth of 2.4%. We also made further progress on our profitability. Our EBIT margin increased to 14.0%, up 10 basis points versus last year, reflected continued cost discipline and ongoing operational improvements. Earnings per share increased to €4.25, up 4.9% compared to 2024, driven by improvements in our profitability and our tax rate. This outcome underlines the financial stability of our business in a year marked by significant external pressures. These results provide a strong foundation as we recalibrate our Nivea strategy, continue to innovate and drive sustainable long-term growth. Let's now turn to the segment level performance. In 2025, Bayerstoff consumer business net sales grew to 8.176 billion euros at an organic growth rate of 2.5%. Adverse foreign exchange effects, including a softer US dollar, resulted in a lower nominal growth of 0.02%. Profitability improved with EBIT excluding special factors growing to 1.108 billion euros, a 20 basis points margin increase driven by disciplined cost management despite cost pressures on our gross margin. Our TESA business recorded organic growth of 1.8% during the same period, closing the year with net sales of 1.676 billion euros. Due to unfavorable foreign exchange effects, nominal sales slightly declined by negative 0.7%. The EBIT margin excluding special factors was 16.1% in line with our guidance. Now let's take a closer look at our performance across the different regions. In Western Europe, we achieved robust organic sales growth of 1.8%, particularly in key markets like the UK, Italy, and Spain. As always, it is important to highlight that our luxury travel retail business is also included in this region and had a negative impact of nearly 100 basis points. Our business in Eastern Europe declined by 2.3%, driven by softer markets and overexposure to personal care, retailer disruptions, as well as intensified competition with local brands, particularly in our key market, Poland. The Americas regions closed the year with sales growth of 3.1%. This good performance was largely attributable to the outstanding results of our derma brands in the United States and in Canada at high single-digit growth rates, as well as the continued strong growth of Nivea in Canada. At the same time, Latin America experienced a notable slowdown, particularly in the personal care segment. As a result, our softer Nivea sales in key markets such as Brazil and Argentina weighed on our overall regional performance, while Derma sales grew at double-digit rates. The Africa-Asia-Australia region recorded 4.5% organic sales growth. India was the most important positive contributor to this growth next to Japan. Our Nivea repositioning activities in China negatively impacted this region in the first nine months of 2025. Following the successful completion of our repositioning activities, China contributed significantly to increasing the region's organic sales growth to 9.3% in the fourth quarter. Now let's take a look at the development of our consumer gross margin. Our consumer gross margin decreased by 70 basis points year on year, from 61.0% in 2024 to 60.3% in 2025. Pricing contributed positively, adding 30 basis points, underscoring the continued strength of our brands and our ability to partly offset cost inflation despite a more moderate pricing environment. Increased costs driven by higher raw material prices and limited volume growth weighed on our gross margin. Mixed effects positively contributed 40 basis points, primarily driven by the continued outperformance of our Derma business. Lastly, unfavorable foreign exchange effects contributed minus 50 basis points. Let me conclude our financial overview by highlighting the key elements of our Group Income Statement for the year. Our Group's net sales grew slightly to €9.852 billion in 2025. Our Group gross margin declined to 57.7%, with TESA experiencing similar costs and foreign exchange pressures as our consumer business. Our marketing and selling expenses remained roughly at the previous year's level, reflecting a slight increase in the consumer and a slight decrease in the TESA business. We continue to drive strong support for our brands with consumer-facing activities, which we were able to increase in 2025, while also driving effectiveness and efficiency of our marketing expense. As in previous years, we have taken the decision to continue to increase our R&D spending, reflecting a strong commitment to fostering breakthrough innovations that will shape our future. At the same time, we maintained a disciplined approach to our general and administrative costs, leading to a reduction of these expenses in 2025. Our EBIT-excluding special factors grew to 1.378 billion euros, a 10 basis points EBIT margin increase in line with our guidance. Lower special factors as well as an improved effective tax rate were additional drivers to increase our profit after tax to €955 million or €4.25 per share, a 20 cents increase compared to 2024. Back to you, Vincent.

Thank you Astrid. After five years in our role, this is the right moment to take a closer look at what has driven our performance and how effective our strategy has been. Over the past five years, we increased net sales by almost 30%, reaching a level of €9.9 billion in 2025. Despite the slowdown in 2025, we continue to be the best performing skincare company, outgrowing our key competitors in this important category. EBIT, excluding special factors, also improved significantly by almost 40%, a clear proof of our commitment to profitable growth. Our top-line art performance was fueled by three key pillars. First, breakthrough innovations. Science-based research and development are at the heart of what we do. Second, successful expansion into wide spaces, both in terms of categories and markets. And third, a strong and growing e-commerce business. We have been growing double digit in e-commerce for more than five years in a row and gaining market share. In 2025, we generated 17% of our net sales online. Let's start with innovation. One of the clearest examples is Tiamidol. This highly effective ingredient has been cascaded across our brands and markets. The latest additions being Chantecaille, as well as the US and China. Since I started at Biosurf, we have turned the Tiamidol franchise into a 500 million euro business. We are continuing to grow double digit and are gaining market share again, supported by high recognition of the ingredient in a scientific community. Tiamidol was validated by a scientific consensus of the 10 world leading dermatologists as the only dermocosmetic solution for the management of hyperpigmentation. Another breakthrough innovation is EpiCellin, a game changer in anti-age. And while everybody speaks about longevity, our epigenetics technology already provides a solution. After its success in the derma segment, we launched EpiCellin to the mass market through Nivea. This reflects the same principle as Ciamidol, developing highly effective ingredients based on strong science and systematically making them accessible across brands and markets. Microbiome research at S-Biomedic is the next frontier of our innovation pipeline. What started as a venture capital investment and R&D partnership several years ago has turned into the development of a breakthrough microbiome innovation for acne-prone skin. We developed Probium 8 to correct blemishes from acne-prone skin using the first-ever skin-native probiotics. With significant results proven in clinical studies, it is planned to be launched under USUIN Dermopure Clinical in the second half of this year. Evaluated by hundreds of dermatologists and tested on thousands of consumers, Probium 8 significantly improves acne-prone skin with no side effects. More to come later this year. Stay tuned. Turning to the second pillar of our strategy, expansion into white spaces. We have focused on the defined set of key markets and made strong progress in the U.S., Brazil, India, China, and Japan. Let me briefly zoom in on the U.S., Brazil, and India. In all three markets, our white space strategy has translated into measurable progress. In the U.S., we launched USUIN Sun followed by USUIN Face and introduced TIAMIDOL in 2025. This strengthened our foothold in one of the world's most competitive dermatological skincare markets. Our consumer business in North America has reached 1 billion euros. In Brazil, you saw an advance from a niche position into one of the leading players in the market. Within just five years, we managed to move from number 15 in the market to a number four position. And India remains a clear success story for us. While we have been present in India with Nivea and oil-care business for a long time, we managed to more than double our business within the last five years. This was driven by outstanding performance of Nivea, as well as the launch of our full skincare portfolio, including Usurin, La Prairie, and Chantecaille. Our DERMA business has fully delivered on our strategy. Since 2021, we almost doubled our business, reaching sales of 1.5 billion euros in 2025. Even in the slowing DERMA markets last year, our user-in-an-Aquaphor brands demonstrated double-digit growth. Also Nivea, the largest skincare brand in the world, grew by an impressive 34% over the last five years. We succeeded in regaining credibility in face care through tiamidol and epicillin. However, the required investment has not allowed us to maintain the right advertising focus on other categories. And through our exclusively global innovation program, we lost some momentum on core local ranges in some key countries. As a result, we were not able to outperform the market to the same extent as in prior years, and Nivea's growth slowed significantly in 2025. We have therefore taken decisive action to recalibrate our strategy for Nivea to restore the brand's growth trajectory, which is a key priority for 2026 and 2027. What exactly does this recalibration mean? We are rebalancing our Nivea strategy along three pillars. First, we are broadening our focus by strengthening categories next to face care, such as deodorant and body care. Second, next to major global franchises, we will support important local product lines by giving key markets such as China, the US, India, Japan, and Brazil greater flexibility in local execution. And third, we are putting more effort behind accessible face care products. Let me dive a little deeper into each of the pillars. Nivea already has a strong foundation in categories such as deodorant and body care. Building on this base, we are shifting parts of our investment in R&D marketing and new launches in these categories. By broadening our range, we are strengthening Nivea's position across a wider set of segments and creating additional growth opportunities. In recent years, Nivea focused strongly on global launches and centralized campaigns. Going forward, we will continue to rely on global innovation platforms and hero ingredients as a foundation, but give local teams greater freedom to tailor launches, products, and marketing to local needs and push key local franchises. One example is Luminous Glow, a successful innovation for emerging markets. Another one is Nivea Facial, a key face care line in Brazil that will launch in other markets as well. Lastly, we'll rebalance the focus also to popular face care products at a more accessible price range next to the premium face care lines like Luminous and Epicellin. Nivea remains an iconic yet accessible brand. Our portfolio deliberately spans from everyday essentials to premium innovations. And as you know, the vast majority of our portfolio is priced at very accessible levels. The rebalancing of Nivea is underway. In the fourth quarter of 2025, we initiated a shift in our advertising and promotional spending, reallocating resources to support a broader range of categories and local initiatives. This marked the first step in the rebalancing process. In 2026 and beyond, we are implementing a set of pipeline measures to strengthen our innovation roadmap. These include breakthrough ingredient line extension on one end and broader launches across categories on the other. We are fostering fast-track execution of innovation to meet current trends and allowing for certain regional innovations tailored to local consumer needs. These measures will take some time to show their full impact. We are confident in our ability to return Nivea to sustained growth and report on our progress in each of the coming quarters. So let me turn to the outlook for our business. We own and manage some of the most iconic skincare brands in the world and operate in the highly attractive skincare market, the largest category in the beauty space. Over decades, this market has demonstrated strong resilience and a consistent ability to recover within one or two years after periods of slowdown or decline. Our well-established and trusted brands together with our wind whisker strategy provide a strong foundation to navigate the current market environment and to deliver sustained long-term growth. Let us now look at our mid-term guidance. In an evolving market environment, our focus remains firmly on outperforming the market. We'll do so by continuing to expand into wide spaces, launching breakthrough innovations and responding dynamically to changing market conditions. A key priority will be to return EVA to an elevated growth trajectory through a clear action plan and targeted measures as part of our strategic rebalancing. On top of that, the use of our cash position to pursue inorganic growth opportunities remains an important element of our strategy and should provide additional upside. We also remain committed to profitable growth in the mid-term, which translates into growing EBIT at least as fast as net sales. We are convinced of the continued EBIT margin expansion potential for our business. in light of the global market dynamics, will not quote a specific number. We'll have to be flexible to respond to market conditions and will not sacrifice long-term value creation opportunities for short-term margin gains. While the use of cash for inorganic growth remains a core element of our capital allocation strategy, we have also strengthened our commitment to returning cash to shareholders. This is reflected in enhanced cash distribution through share buybacks and dividends. As a next step within this framework, we are continuing to strengthen shareholder returns. The executive and supervisory boards of Biosof propose that the dividend for the 2025 financial year is confirmed at one euro per share. The proposal will be submitted to the Annual General Meeting on April 23rd. Following the successful share buyback programmes in 2024 and 2025, Biosof will initiate a further share buyback programme valued at up to €750 million over a period of two years. While we remain very confident in our profitable growth prospects over the mid- and long-term, it is important to acknowledge that market dynamics has not improved at the start of this year. We saw a clear slowdown over the course of last year, and this softer environment has continued into early 2026 without clear signs of a near-term recovery. And while we have initiated an EVA rebalancing strategy, the measures will take some time to become fully visible. In parallel, the luxury skincare market remains volatile. And while improvements were visible in China in 2025, severe disruptions in the U.S. department store landscape and travel retail in China negatively impact the current performance. We view these disruptions, especially in China travel retail, as temporary and not the full reflection of the underlying consumer demand. Nevertheless, they will have a noticeable negative effect on our Q1 luxury performance. Let us turn to our guidance for 2026. Against a continued challenging and volatile market environment, we expect sales to be flat to slightly growing organically across our business segments. This applies to both the consumer and TESA segments as well as at group level. We still expect to be able to outperform the market as demonstrated in previous years. The first quarter of 2026 is expected to land below this range at a low single-digit negative organic growth rate. While Derma is expected to deliver another strong quarter, Nivea's innovation momentum that positively affected Q4 2025 is less impactful this quarter. In addition, the disruptions in U.S. retail and China travel retail landscape will put significant pressure on our luxury brands in Q1. On profitability, we expect the EBIT margin, excluding special factors in consumer, TESA, and for the group, to be coming slightly below the 2025 level. This is driven by raw material cost increases, unfavorable FX, and only limited fixed cost leverage on gross margin. At the same time, we will not decrease our marketing spend proportionally as we want to ensure sufficient investment behind our brands. This concludes our full presentation and we are looking forward to your questions. Over to you, Christopher, for the Q&A.

Thank you, Vincent and Astrid. You will now have the opportunity to ask questions. If you would like to ask a question, please press star one on your phone. And please note, as always, that we have a maximum of two questions per caller. And we will start with Callum Elliott of Bernstein this morning. Callum, good morning. Please go ahead.

Good morning. Hopefully you can hear me. So my first question is on the strategic rebalance, specifically The increased support and spending that you were talking about behind deodorants, body care, local product lines, is that incremental spending, Vassal, or just a reallocation of resources away from face care? And can you talk a bit more about when you expect to see the benefits of some of that rebalance? And then my second question, please, is on cash conversion. you guys have the weakest cash conversion of all large-cap global consumer staples companies, and it gets worse this year in 2025. I understand that there's part of this driven by strategic decisions around capex, et cetera, but on the more executional pieces like working capital, again, we see you getting worse this year, working capital now over 10% of sales. So my question, probably more for Astrid, is, Is this cash conversion a strategic focus for you at all? And if yes, when should we expect to see improvement? And if no, why not?

Thank you. Thank you, Calum. So I will take the first question. Obviously, the focus that we had on premium face care was very expensive in media. This is by far the most expensive skincare category. So what we are doing is simply to reallocate part of the spendings from premium face care into body and DAO and affordable skincare. The good news is that on those categories, they are much less media intensive. So we can really develop, you know, strongly those businesses with an amount of working media, an amount of promotion, which is much below what we are currently spending on the Nivea premium face care. Second question.

Yes, and Callum, to your question related to cash conversion. Yes, it was not where we were hoping it to be this last year. There were some impacts that were related to some aging tax payment that we've made to stop the clock there, but are absolutely looking to recover. We also had obviously given the very back-loaded Q4 some impact obviously on working capital. We also had some higher inventory than we would have liked to, but we are looking to improve that. And I can promise you that it is a focus for us as a company, and we're looking to make progress in 2026. Thank you very much.

Thank you, Callum. And then the next one on the line is Celine Panutti of JP Morgan. Celine, please go ahead. Your line is open.

Thank you. Good morning, everyone. So I wanted to first come back on the guidance for the year. Low single digit negative, you said, for Q1. So you mentioned the impact from the department store and travel retail. Is it possible to give us a bit of an idea of how much double digit down will La Prairie be in Q1? And likewise, Nivea, I would expect still it to be as well negative. Would that be the case in Q1? And does it mean that the rest of the year, you know, you expect it to be up low single digits or thereabout? And how do we think about this when you have a tough comp in the second half? My second question is on Nivea, because... Vincent, you are recalibrating the strategy. I was nevertheless surprised that we don't get more innovation benefits. You said that the innovation benefit in 25 was really hitting at Q4. And why don't we get that innovation benefit in H1? I appreciate you don't have the data from the repurchase rate, but like it feels like the innovation doesn't have a lasting impact. So what visibility do you have on this? And if you could also explain, you know, you give more freedom to local markets to adapt. I understood when you came four or five years ago that probably there was too much freedom So can you come back and explain what's different in the recalibration you're making? Thank you. Sorry for long questions.

Thank you, Céline. On your first question on the Q1 2026, I think we are obviously very optimistic regarding derma, and this is clearly the driving force of Biosof. It has been, it will be. On Nivea and La Prairie, we have two different phenomena. On Nivea first, Q4 was clearly a quarter of Céline, because we have, this is, as you remember, from September, this is where we had most of the innovation. So we have done a good quarter recently. with Nivea, but now we have to sell out the innovation. We don't have new selling innovation coming in Q1, it's more Q2, so it's about absorbing the volumes, being sure that we drive the sell out. The good news that the first market share is positive, that's encouraging, but this is what will happen in the Q1. On La Prairie, it's a bit specific. We are clearly seeing over the year a progress. The retail sales, the sell-out is improving. We are even growing double-digit in China. We are improving our figures in the U.S., growing high single-digit in Europe. But we are hit by two phenomenons which are not hitting only La Prairie, and you've seen that in the course of our competitors. On the other hand, the U.S. department store environment is difficult, with one key retailer being on chapter 11. And in China, there was a change of travel retail operators of the two airports of Beijing and Shanghai, Sunrise, which obviously has an impact on the volumes because they didn't buy in December and the new travel retail operators will buy more at the end of the quarter, beginning of Q2. So that has an impact on the selling figures of your Q1. And to give you a To quantify that, it will be a double-digit loss, but hopefully, after looking at the good health of the cellot, we'll do a better job. On your question on IVA, the recalibration, in fact, is clearly taking place in September. It started by the launch of the derma-controlled deodorants together with epicillin. And then it's coming with new launches, new initiatives, which will hit the shelves starting in Q2, but more surely in H2. When you look at the launches we did in the last quarter, we are very happy with EPICELINE. EPICELINE is, we said that already, but is by far the best ever launch of Nivea in face care. We went immediately to the position of being the number one serum in Europe. Very, very important launch for us. We have seen the sell-in, we have seen the sell-out. We are just waiting for the repurchase rate, but as you know, we know pretty well the formula because it's very close to what we launched on Userin. Dermacontrol is starting well. It's a good figure in Europe. We are gaining market share in deodorants, which is something we didn't have since a long time. So we hope to see those two launches developing well in Q1 and Q2. And we have also a lot of other opportunities, other launches, other activities coming in the second quarter. So yes, we'll see clearly the digestion of the selling of Q4 into Q1 and this development of the sell-out. And then we should enter into a more positive dynamics, having still in mind, and this is also one of the main reasons of the guidance, that we are working on the skincare market which is at 1% growth. So that's also the big change versus what we had in the past years. We are clearly in a slowing market, and this is impacting, obviously, a brand like Nivea, which is very large and which is in multiple categories. On your last question, freedom in a frame, this is the way we call it. You're absolutely right. In fact, when I took over as the CEO, I saw a Nivea landscape which was purely local. And it's not that it was working, because we had a lot of small things in the countries, but none of them being really impactful. So I moved into a direction which was a bit extreme, which was to globalize Nivea. So it was successful, as I said, on franchises like Luminous Tiamidol and NP-Celine, but it also was made at the expense of some strong local franchises. We mentioned Facial in Brazil, which used to be, in fact, the basis of Nivea Skincare in some key countries. So we are not only reassessing those local franchises as key priorities and coming with new launches, but also we are ensuring that the countries can play with them. It's about influencers, for example. It's about specific in-store activities. It's about also advertising campaigns. We'll have some global campaigns, but we'll have also some local campaigns in China, in Japan, in India, in Brazil, in the US, that we believe will be better at recruiting new consumers. So that's this rebalancing. We are not back to the history, but we are just rebalancing versus the globalization that took place since 2021.

Thank you very much.

Thank you. The next one is Warren Ackerman of Barclays. Warren, please go ahead. Your line is open.

Yeah, good morning, Vincent Astrid. It's Warren Ackerman here at Barclays. So one operational question and one strategic. The operational one is really, can you maybe dive into Eastern Europe? I know it's been weak all year, but it really lurched down in Q4. I think it was down at 7% organically, well below consensus. And I know you've talked about Poland and other places, but can you maybe kind of slightly deeper dive into what actually is going on in Eastern Europe, and is that one of the key reasons why the guide is so low for 2026? What is your expectation for Eastern Europe for this year? Are you seeing kind of delistings? Is it just big share losses? What's happening in Eastern Europe? And then the second one is strategic. I think on the wires, Vincent, you say that M&A – is a top priority. I think the quote is, we're looking at every skincare opportunity that comes to market. Just a bit surprised on that comment, given, you know, you're in the middle of a big repositioning of Nivea. You've got a soft skincare market to deal with. Is this the right time to be looking at deals where you've got so much going on on the base business and also when perhaps, you know, some of the results from Coppertone and Shantakai haven't been the best? Just interested in the timing of that comment and what's behind it. Thank you.

Thank you so much. On your first question, yes, we had a difficult year in Eastern Europe, and it used to be a growth driver for the consumer division. First, you know, the big thing is that the market went down from something that used to be 15% growth to flat 2-3%, which was in fact the result also of some lack of consumer confidence, and the fact also that over the years, we all have known to increase prices due to increase of cost of goods. So there was clearly an issue of consumer confidence. We had also a specific issue in the fact that we are over-indexed in personal care in these markets. We are pretty small in skincare, we are more in personal care. And in deodorants, we were hit by a lack of new products, but also a lack of investment. And there is also a dynamic which is very interesting. There's a strong development of local brands, Korean brands, for example, which is obviously a challenge for us. So we have to come back with new products, new initiatives. We had also some difficult discussions with some retailers, indeed. The good news is that we are back to very good discussions with retailers and we have some good plans in place. We have also a lot of new launches and I mentioned this affordable face care. This is one of the regions where we'll be clearly investing in affordable face care. And last but not least, we believe also that some of the activities we are putting in place, for example, influencers, will help us also regaining market share again Korean brands. So it's not yet the light at the end of the tunnel, but we feel more positive about Eastern Europe than we were in 2025. On your second question, yes, we are looking at every acquisition. We are obviously looking at businesses that we could improve. This is why we will clearly not buy companies in places where we have no muscles, no know-how. We have to look at that. We have, as you know, a pretty small portfolio. We have also learned. I think the M&A muscle has developed over time. We did a much better job with Chantecaille than we did with Coppertone. Chantecaille is one of the big hopes of 2026. We fixed the basics. We have also a new team in place. I believe we have a kind of knowledge or learning curve that is making us more able to integrate and to make good businesses. When they will come, we'll look at them. We might make an offer, we might not make an offer because every time we look at really at the price, but we need to be clearly looking at opportunities because today we have a portfolio which is much too small.

Okay, thank you.

Thank you. The next question is from Geoffrey Berlice-Amelie of Bank of America. Geoffrey, please go ahead. Your line is open.

Good morning, everyone. Thank you very much for taking my question. Good morning, Vincent. The first question is on the Chinese growth component in the fourth quarter. I was just wondering if you could explain a little bit more the contribution from Tiamidol in the country and whether you had seen any cannibalization effects from your cross-border e-commerce sales previously. More importantly, I guess on China, thinking about 2026, you obviously have an easy base or an easy comp due to the rebalancing actually you performed last year. But I really wanted to understand whether you saw any legs to the growth that you saw in 4Q. And yeah, maybe I'll leave it at that on the Chinese piece. The second element that I wanted to ask, maybe this is more for Astrid, but with this affordable phase care lines that you want to launch, what will be the impact on mix for the gross margin in 2026 and also in the press release in that regard you mentioned that the navy ever balancing was going to last into 2027 as well so is there any way of guiding us or helping us understand where we could land in terms of margins on ebit for 2027 thank you very much

Thank you, Geoffrey. On China, I must say that we feel pretty positive. If you look at the different brands of the portfolio, I will start with La Prairie. La Prairie, we grew double digits, not only on e-commerce, but also on brick and mortar. We are gaining market share. So we are pretty positive about the development of China. And I think some of the new products we are launching in the coming months will make our business, our business even better. We have also the launch of Shantekai, which started at the end of the year, which is pretty promising. It's more e-commerce than brick and mortar, but this is clearly an opportunity for us. And then there is the Tiamidol effect, that it took us 12 years to get the registration of Tiamidol. We started to launch and we are extremely happy with the results. Immediately, the anti-pigment serum became the number one anti-pigment serum online in the market and we are even the number two anti-pigment brand online. outstanding results on Usurin. We are coming also with new products. You know that the beauty of the TMI story is that it comes with a lot of new SKUs. So I clearly believe that on Usurin, we have found our way and China will become one of the top countries in the next future. On Nivea, we started late. We started only at the end of the year in November, December. The figures are good, but I want to be not over-promising. We have still some work to do. As you remember, we are transforming a cheap offline personal brand into a premium online face cap brand. It has obviously, it is a stretch. We have some good launches. We have some good activities. But overall, I think we will have a good quarter one and we'll have a good year on all the brands of buyers in China.

And then your question on the affordable face care and the impact on mix as well as your question on EBIT. So look, the affordable face care line still tends to be accretive to our overall margin, especially also because the AMP spent behind it is not quite as strong as in our premium range. So it's still accretive. Additionally, we continue to believe that we will grow our derma business quite strongly, which will have a positive impact on our margin and our mix. Of course, there is then the investment behind other lines such as DO and body, which will partly offset that. We're looking to still have a slightly positive or a balanced impact on margin and on the mix. So let's see. In terms of 2027 EBIT, what we are saying for the midterm is that we look to continue to drive profitable growth. We are not at this time committing to a specific EBIT increase.

Thank you very much.

Thank you. Then the next question is from Jeremy Fialico of HSBC. Jeremy, good morning. Please go ahead.

Hi, Monique. So look, when we take the 26 guidance in aggregate, it obviously implies a worse performance for consumer relative to 2026. So perhaps you could kind of give us a little bit more color from a sort of brand standpoint, what you're expecting over the year. So for example, do you think that Nivea can grow in the year or is the repositioning and the work you need to do going to mean that it will be negative? And then I guess maybe the second question is if we can just go a little bit deeper down into some of the drivers of the growth that you'd expect to see from Nivea and what I'd be interested to hear your comments on with things such as the drag you're likely to see on personal care and whether there's going to be any sort of negative pricing effect on if there are certain things that you need to reposition or whether you think that the brand volumes actually could be positive. So those are my two questions. Thanks.

Thank you so much, Jerry. On the guidance, we clearly have built the guidance on what we know and not what we hope. So when I look at what we know, we know that the skincare market has slowed down. It used to be 7% last year. It's today more into the 1%, even negative in emerging market in volume. So that's something we have to take into account, which is particularly important when you deal with Nivea. It is also confirmed by the performance of some competitors. You saw the number one skincare company delivering close to 0% growth. So we know it's a difficult moment for skincare. That we know. The second thing we know, which is obvious, we know that Derma will continue to overperform. We are extremely optimistic with Derma. We have some big launches and we mentioned, and we'll talk about that later, the launch of Activia. We have also some big things coming at the end of the year. So more to come, but Derma is more than ever the growth engine that we know. We know also that, I mentioned that, the effect of Sunrise and also the US retail department store environment is causing us a big decrease in Q1. So obviously, we'll have to make it up in the next nine months, which means that the performance of La Prairie won't be in line with the good performance we see in the sell-out. And last but not least, something we don't know yet, we don't know yet when the recalibration of DVR will show its effect. We are happy to see that the January market share is positive. That's something we didn't experience in a long time. So that's a first very, very good sign. We know also that the new products are coming in the second semester, that we are also having this activation of local franchises in the second quarter. So we will, clearly we are aiming at having a positive Nivea in 2026, but clearly the market dynamics will play a role, the appeal of our new products and new advertising campaign will have a role, and this is something we'll monitor and of course we'll update you every quarter. On the second element, DVR personal care, it's a complicated environment because we have clearly a good proposal in Europe and this is why we were happy to see some market share gain in Europe with the launch of DermaControl. So we are even in pretty good position and number one in many countries. It's a bit more difficult in emerging markets. We have clearly some markets which are collapsing. It was the case of Brazil. We know also that we have to improve the value of our deliverance in the sense that we cannot increase prices, but we have to increase profitability in order to invest. So there is some value management to engage in. So we are working on that. We have not yet found the perfect recipe for emerging markets. But this is clearly a priority. And also here, what is interesting, we have big, big local franchises in Latin America, in Thailand. So we will also leverage those franchises, which have a pretty strong appeal locally, and that will complement the global launches like Therma Control and the relaunch of Black and White. We don't need to decrease prices. You have to remember that Nivea is cheap. It's between 2 and 10 euros and only two products are more expensive. This is Luminous Serum and this is Episeline. So we have a good price, but clearly we have to find the good activities in the country to regain momentum.

Thank you, Jeremy. So the next one is David Hayes of Jefferies. David, please go ahead. Your line is open.

Thanks, Christopher. Good morning, all. So a couple for me, just following up on the sort of volume mix pricing dynamics, can you give us a sense of what the contributions will be across those three elements in that sort of flattish guide for 2026 in consumer? And I may have missed it, but can you give us that for retrospectively? And then secondly, on the margin reconciliation, is there kind of an accelerated cost-save intention program within the margin guidance? I'm just trying to reconcile the moving parts again, given market spend seems to be at least equal. You've got this FX headwind dynamic. I'm just trying to understand what the offsets are to that, that the margin would still be relatively flat. And maybe on the FX side, 50 basis points headwind last year. Is it possible, given where we are today on rates, et cetera, to give a sense of the quantum of the FX headwind in 2026 as it stands? Thank you.

I think I straightaway take both questions.

In terms of this year's growth, 2026, we do see primarily volume growth from what we're expecting at the moment. Much, much less pricing growth, as we've already seen. Again, from a mixed perspective, we do see a balance where we continue to drive certain parts of our business, particularly derma, but also face care and so on, that should be accretive to our margins. And then we will see, obviously, hopefully acceleration of our DO business, which will be partly offsetting, but hopefully really contributing to that volume growth. In terms of, I'll call it cost discipline, I think we have worked the last years and plan to continue to do that. to really ensure that in the end, when we're thinking about our overheads, we invest in the strategic areas of our business, but then look to continue to keep all other costs really under control and even reduce. You would have seen that we've made some progress there. And yes, FX headwinds has obviously been quite significant in the last year. We have had some help, obviously, from what we've hedged. into the new year. That's a bit less unfortunately of an impact. We do see that negative on our results. Let's see where it ends up being. It's really very uncertain right now to really give you a precise number. We will monitor that and make sure that obviously we find ways to offset the impact there.

Thank you. Thanks, David. The next one is Guillaume Delmas of UBS. Guillaume, good morning. Please go ahead.

Thank you very much, Christopher. And good morning, Versa and Astrid. Two questions for me, please. One on Nivea and one on La Prairie. Nivea first and the innovation program for 2026. I think at the same time last year, you were showing us that 47% of the brand would be launched or relaunched in 2025. So wondering, how does 2026 compare to that 47% level of 2025? Should we expect a similar magnitude or even a further step up? And still on the innovation topic for Inivia, I mean, you announced this morning you're launching, you will be launching accessible face care propositions. At the same time, you've also introduced very premium products such as Epicillin. So how do you ensure that you do not overstretch too much the Nivea brand? And then my second question on La Prairie, I mean, Brenda had an encouraging end to 25, but yet if I look at the annual turnover of La Prairie, it's now nearly 30% smaller than what it was in 2022. So you indicated the Q1 softness, but where does the brand go from here i mean do you think it needs some adjustments to its strategy or you're confident that it will be back to positive growth territory in 2026 and that you can go back to the 2022 sales level in a not too distant future thank you very much

Thank you, Guillaume, for your question. On your first question, you're right, we had the plan to do 40% of our portfolio was supposed to be relaunched. It was relaunched in 2025. It is true also that most of the relaunches were based on some sustainability changes, so it was not really visible in some cases by consumers. We have also made some changes that required a lot of investment and did not really deliver additional sell-out. 2026 will be a bit wiser in terms of relaunches. We have some launches and they will be hitting the shelf in Q2 and Q3 mostly. In terms of relaunches, we'll come really when we come with a true added value. For example, we are relaunching the black and white DAO, with a great formula. We are also launching our third care line. So clearly, choosing the areas where R&D can provide a visible benefit to consumers. And we'll do that, as I say, mostly from April. Your question on accessible face care and premium face care is absolutely right. But I would say there are three cases. And there are the cases where we can do both. I think Europe is of use. We have a brand which is so large and so wide that it is not a problem. And you just have to visit a store to have, you know, a luminous and an epicellin around 20 euros and have, you know, an accessible Q10 at 10 euros and essential at 2 euros. So we have to find a way to support both. Most of them, some of them are media driven, others are more promotional driven, some of them are influencer driven. so we'll be able to do that in emerging markets it's a bit different there are countries for example i was mentioning brazil where we are not launching epicelin because we believe that the consumer price of epicelin is too high then here in brazil the focus will be clearly facial will come with new innovation in the second semester and also a big launch in 2027 so facial will be the absolute priority for the the skin care business the face care business of brazil Another emerging market where we will privilege, on the contrary, the premium face care offer, but using some specific elements. For example, you might have seen the pictures. We are launching Luminous in Thailand in a sachet. So we have the most premium formula of Nivea. This is Tiamidol. But we use also the right way to eat consumers and to be sure that consumers are purchasing Luminous in their stores. On your question about La Prairie, you're absolutely right in your assessment. I think the new strategy that we are putting in place is starting to pay off. And again, if I eliminate this one-off effect of your Q1, it's about coming with a more affordable proposal. And when I talk affordable, this is obviously something which is more around 300 euros. We tried that already with some smaller sizes of existing franchises and Slim Caviar, for example. We are coming soon with a new franchise, which will be priced between 150 and 300 euros, which will allow us to convince, to recruit younger consumers, which obviously could be a bit reluctant, putting 1000 euros in a cream of La Prairie. The second element where we are clearly accelerating is e-commerce. We are already pretty good in China. I was mentioning the successive double-digit growth that we have since five years in e-commerce, T-Mall, JD, TikTok. But we are also becoming much more ambitious in the rest of the world. We are launching next month, for example, La Prairie on Amazon in the US. That's something which is a premiere. And we are working with Amazon to be sure that the equity of the brand will be respected. We have other plans also like that. which will allow us to be more accessible, especially in a world where you see clearly that department stores are losing ground and e-commerce is taking over. So the strategy is starting to work. Again, China is a good example. Much more to do. So hopefully, again, after this hiccup of the Q1, we should see some good things happening on La Prairie.

Thank you very much. Thanks, Guillaume. The next one is Olivier Nicolai of Goldman Sachs. Olivier, please go ahead. Your line is open.

Hi, good morning, everyone. The first question is on Germany, specifically. One of your competitors launched a mixer brand. Do you see an impact for Cornivia there, and how are you planning to protect your market share?

Yeah, Mixa is a brand which has been launched in Europe and starting in Germany. So obviously aiming at taking over market share from Nivea. This is a party strong in body and not present in other categories. I mean, they are part of the competition. The way CeraVe was a competitor also in the past. We have a good formula. We have also good activities. You know, if you were in Germany, Oliver, you will see today, this week, a big campaign on the Nivea Cream Vegan. We're adding a new SKU to Nivea Cream, the historically iconic Nivea Cream, in order also to gain some shelf and to gain also new users, and it's working very well. So we'll treat Mixa as a normal competitor and forcing us to be even better on body and on Nivea Cream. But so far, so good. We are growing on body.

Thank you.

Very good. Thank you, Olivier. Then the next one is Carol Zerte of Kepler Chevreux. Please go ahead, Carol. Your line is open.

Yes, good morning. Thanks. Thanks all. Question with regards to the margin. You look back to the last five years and we see good progress from both top line and bottom line. But if we go back to 10 years, you had a business with a 15% operating margin in consumer. Today, you're almost 50% larger on the top line. So I was just wondering, why is there not more operational leverage in your business given the scale you've added? during that period of time and good growth margins. So that's the first question. And the second question is really quite straightforward. Given where FX sits today, your expectations on EBIT, would you expect EPS growth in 2026? Thank you. Astrid?

Yes, so look, in terms of our progress, we have showed even some in our presentation this time around. We have made really nice progress in the last few years in terms of you answer where we are versus the time when it was similar or even higher. During that time, the margin was primarily achieved through really cutting advertising spending to drive profitability, while a lot of investments in the business, e-commerce, digital, and so on, were not made. We have since, as you know, back at a few years back, really kind of done a margin reset to really invest in those businesses. But then with the investments in those businesses drive the right kind of growth that will allow us to hopefully scale much, much faster in the in the future. And we've made that progress. As you see, we have really caught up on e-commerce. We're doing very well there. we're really digital in terms of our advertising we're trying to be where the market is and really compete there we've significantly invested in our innovation in our white spaces so we're really putting the money to good use to then drive longer term growth yes this last year has been a bit of a hiccup also driven by the markets but we do think for the future we have that opportunity with these investments to continue to drive profitable growth And then in terms of your question, look, we are at this moment, given also the uncertainty, giving this guidance of slightly below prior year in terms of EBIT. We will stay with that right now to allow us that flexibility, but hope throughout the year we can provide more color on that figure.

Thank you. Thanks, Karel. And then the next one is Von Odum-Silpa from RBC. Von, good morning. Please go ahead. Your line is open.

Good morning. Thank you for taking my questions. A tour from me, please, on market share and pricing. So first one, you already provide a lot of color around market share performance by region, but could you also comment on the performance for the whole consumer business through 2025 following the launches in Q4? How has that trend compared to the beginning of the year? Any number you could give would be helpful. And another one on Nivea pricing, sorry. So in preparation for the strategy to broaden price range for the portfolio, Could you help us think where do you see the current price positioning of Nivea? Any part of the portfolio you think maybe the brand is not as price competitive yet or any part of the portfolio that you see higher competition? Thank you.

Thank you. On the market share, overall, we gain market share in a very strong way in derma. In the derma, we are overperforming the market by a factor of three. So gaining market share in absolutely every country, on absolutely every category. It's not only the case of anti-pigment, it's also the case of anti-age. We became, for example, number one anti-age brand in emerging markets, and we were already number one in anti-pigment. So clearly, Suncare is gaining market share every year in every country. So clearly, Derma, we are really in this dynamic since five years, and we believe that it will continue. On Nivea, we are not gaining market share, and this is why I was happy to mention that January 26 is positive. a number of months without positive gain. We're not really losing market share against the big guys. We are losing market share against local brands and indie brands, which is forcing us to react, hence the localization in Somme Real, hence the use of influencers. But overall, this is one of the priorities. I clearly would like Nivea to regain market share and to be back into this positive dynamics. On La Prairie, different profiles. Overall, we are gaining slightly market share, but clearly where we overperform is China. In China, we are gaining market share in brick and mortar and e-commerce. In the U.S., we are getting better and better quarter after quarter. So in the last quarter, we were at parity with the market, knowing that the U.S. is a bit specific. We are only sold in department stores, and we are also... a bit victims of the the disaffection of department store so so overall okay and and some good also news in some european countries and last but not least healthcare we are gaining market share every year since nine years, overperforming the market. This is an extremely strong brand, also very profitable. So very happy to see that. So in total, as I said, we are a skincare business which grew 3.7%. The skincare market grew 1.52%. So we gained market share in 2025 as a company in skincare. On your second question, I think, as I mentioned, the price positioning of Nivea, 85% of the range is between 2 and 10 euros. So we don't have an issue of price. We did have some issue of pricing with our Luminous range in emerging market. This is why we decided to change the packaging of Luminous in order to be able to price down Luminous, but still being profitable. That's the change we have done. So you don't have the same packaging, Europe versus emerging market. We have also reworked the formula to be sure that it would be affordable in India. If you remember, I presented the case and we moved from dispenser to a tube in order to have the same gross margin but to have a product which is acceptable. And we just did the same with a sachet in Thailand. also to have the right offer while not deteriorating the gross margin. We don't want to decrease prices. We are coming with a moderate price increase and even no price increase in some cases. Clearly, we believe today that we have the right setup for brands and this is how we believe we're going to be able to regain momentum.

Very helpful. Thank you.

Thank you, Fawn. So we'll have two more. We'll start with Bernadette Hogg of Reuters, and then we'll have Misha afterwards. So Bernadette, please go ahead. Your line is open.

Hello, thank you very much for taking my question. So my first question was, are you thinking of joining some of your peers and asking for paid U.S. tariffs back now that the Supreme Court has judged them to be illegal? And At the nine-month results, you mentioned the skinimalism trend. Is that something you see continuing through 2026? And how do you think about positioning yourselves within trends like that?

Thank you. We didn't get the second question.

What sort of trend are you speaking about? Oh, skinimalism.

You had talked about that at nine months.

Absolutely, skinimalism. On the first question, no. We are not planning to be part of the companies suing the US government, simply because we are not really hit by the tariffs. As you might remember, 90% of our products are either produced in Mexico, where we have the US MSCA agreement, so there's no additional tax, and the rest is produced in the US. The part which is produced in Europe is a very small part of the USUIN range, so we are not planning to be part of this movement. On the second element, yes, absolutely, the skin mineralism is something which is very important. We see that in all categories. We see that in derma, we see that in luxury, we see that on mass market. It's about having the right ingredients, having the right offer. One of the things also, we are recalibrating. We used to be very obsessed by our own ingredients, anti-amidol, epicillin. We are coming also with other ingredients which are well known, could be vitamin C, could be niacinamide, in order to be sure that we are able to offer in one product an even better or even stronger performance by mixing ingredients. We are also working on some specific products which are combining the skin effect of, for example, a moisturizer and a cream. So all of that is underway and we believe also that our brands are pretty well positioned. If you look at Eucerin, this is a problem solution brand, so exactly spot on with the trend. And if you look at Nivea, We are used also to convince women which are using a small routine, for example, Germany, but also a very large routine like in China, Korea, or Japan. We are equipped for that and we leverage this trend.

Thank you, Bernadette. Next one is Misha Omanadze of BNP Paribas. Misha, please go ahead.

Morning. Thanks for taking my question. I have one, please. Based on what you hear in the market, what actions are your major competitors taking to remedy the skin and personal care slowdown? And are any of your large retailer partners pushing for price reductions, which may suggest maybe more material pricing pressure in mass skin and personal care than is factored into your full-year guidance? Thank you.

Great question. You know, the slowdown, it happened already. I was looking at the history in 2013, skincare market minus 2%, 14 plus 2, 15 plus 14%. If you look again in 2018, plus 3%, the year after, plus 9%. So it's something, it's a cycle. At the end of the day, the skincare market remains the most strategy market. The way our traditional competitors are acting is coming with new innovations. We were lucky to be really the one bringing all the top innovations in skincare. As I said in my introduction, a lot of people are talking longevity. We have launched EpiCellin already one year ago. So this is a way you drive the market up. We are in a business which is offer-driven and which is not really demand-driven. So if we come with a nice proposal, if we come with a new formula, this is a way we attract new consumers, we convince them to buy our products. Are other players doing another game? Yes, of course. If you look at the local brands, if you look at the indie brands, It's about, you know, cheaper prices. It's about very well-known ingredients. It's about influencers only. And the good news in a way is that it goes up and down. And at the end, you know, the big brands are back. And this is where, you know, consumers come back when they want to have a safe formula, when they want to have safe ingredients. And this is also why we... We feel that the market dynamics will come back. I mean, one good example I could mention, you know, if you look at Derma, we are delivering a double-digit growth every year since five years, despite the fact that the market went down to a low single-digit growth in 2025. The market is what you bring to the market, and we are pretty well-equipped in skincare with a biozoic R&D muscle.

Sorry, on pricing potential.

No, pricing, honestly, when you look at competition, we don't see any actions which I think will damage the market. We are doing promotion in mass market. That's true for everybody. No big issue on this front.

Okay, thank you.

Thank you. That was our last question. This concludes our full year results conference. Biasdorf's next investor relations event will be the release of our first quarter results on April 21st, 2026. We appreciate your interest in Biasdorf and look forward to seeing you here again in April. Thank you very much.