Beierdorf Ag Unsp/Adr

Ladies and gentlemen, welcome to the third quarter conference call. I am Matilde, the course call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Christopher Sheldon, Head of Investor Relations. Please go ahead, sir.

Good morning, everyone, and thank you for joining us for our third quarter 2026 conference call. I'm here with our CEO, Vincent Warnery, and our CFO, Astrid Hermann. As always, we will start with a presentation of the quarterly results, followed by a Q&A session. And with that, Over to you, Vincent.

Thank you, Christopher, and good morning. Welcome to today's conference call. As expected, we completed the first quarter with an improved performance compared to the first half of the year across our entire consumer business. Our derma business with Usurin and Aquaphor once again outperformed the market. The expansion of Aquaphor into body care contributed to the strong growth trajectory. and Eucerin reached another important innovation milestone with the launch of our breakthrough solution for acne-prone skin. Our luxury business with La Prairie and Chantecaille also accelerated in the third quarter. La Prairie gained further momentum, with China remaining the key growth driver. In addition, Chantecaille delivered double-digit growth. For Nivea, our 18-month turnaround plan is progressing. Key launches such as Phase Plus in Europe are off to a good start, and the continued growth of Nivea's sellout is further evidence that we are on the right track. Our third quarter performance reflects the strength of our business, but also the continued challenges around Nivea. Nivea net sales declined by 4.9% organically. While net sales dynamics improved compared to the second quarter, several selling headwinds continued to weigh on performance. In addition, Nivea's third quarter performance was affected by a commercial dispute involving a Russian subsidiary and a local business partner in Russia. The dispute has been resolved and proceedings have been settled. Normal business operations have resumed. With our H1 results, we announced a more comprehensive turnaround plan for Nivea to restore sustainable growth. I will update you on the actions already underway Our Derma business accelerated to double-digit organic sales growth of plus 10.6%. Growth was broad-based across regions and categories, supported by the rollout of breakthrough innovations and expansion into wide spaces. Healthcare continued its positive trajectory with organic sales growth of plus 5.7%, supported by innovation in wound care. La Prairie gained further momentum, delivering organic growth of plus 8.5% in the third quarter. Overall, our consumer business declined by 0.7% organically in the third quarter. Excluding Russia, consumer delivered organic sales growth of plus 0.6%. As highlighted in our H1 call, Tesla performance was affected by the semiconductor shortages Impacting our Hyaluronics business. This resulted in an organic sales decline of 4.3% in the third quarter. At group level, this translates into an organic sales decline of 1.3% in the third quarter. Let's now look at the performance by brand in more detail, starting with our Derma business. Derma, which is used in Aquaphor, delivered double digit organic sales growth in the third quarter on top of a top Comparison based in the prior year. Of the first nine months, the business grew by plus 8.7%. Consumers continue to look for efficacy, scientific credibility, and dermatologist endorsements playing directly to our strengths. What gives us confidence is that derma's growth is not driven by only one market or innovation. We continue to see strong growth across regions and categories, supported by our expansion into wide spaces and the rollout of breakthrough innovations. In North America, Aqua4Body, the largest US launch in the brand's history, is off to a strong start and significantly expands the brand's potential beyond its traditional categories. In Latin America, Mexico and Brazil continue to drive ROSE. In Europe, a strong sun season as well as thiamidol line extensions in body care supported organic growth of plus 8%. And across the AAA region, USUIN continued to deliver double-digit growth of plus 25% with particularly strong performance in Thailand and China. During my recent visit in China, where USUIN is a leading anti-pigmentation brand, I saw firsthand Our Tiamidol is bringing our deep skincare expertise to consumers around the world. With Tiamidol now also registered in Korea, we are opening up further opportunities in one of the world's most innovative skincare markets. In July, Aquaphor launched into body lotions and creams, thereby substantially expanding its growth potential in a category that represents 80% of the US body care market. The launch is off to a very strong start. Within six weeks after launch, Aquaphor already secured the number three position in the US therapeutic skincare market and the number one derma body care position in a drugstore channel. The launch was supported by strong activation with leading US retailers. In addition, feedback from dermatologists has been very positive. As a result, Aquaphor accelerated to an organic sales growth Our plus 14% in a third quarter. The launch of Usurin Dermopure Clinical Probiome 8 is another strong example of how we turn our scientific expertise into clinically proven skincare solutions. At the heart of this breakthrough innovation is our patented active ingredient Topic A, which takes a new approach to acne-prone skin by helping to balance the skin microbiome. It builds on more than 20 years of microbiome research and the expertise gained through our acquisition of S-Biomedic. Feedback from dermatologists and consumers has been overwhelmingly positive. At EADV, Europe's leading dermatology congress, more than 1,400 healthcare professionals joined the largest scientific symposium in EADV's history to discuss the science behind this innovation. Problem 8. was launched in September across its first markets in Europe, Mexico, and Thailand, opening new growth opportunities for Eucerin in one of the world's largest skincare categories. Let's continue with our luxury brand, La Prairie. After temporary retail disruptions earlier in the year, the brand returned to growth in Q2 and accelerated further in the third quarter, delivering strong organic sales growth of plus 8.5%. La Prairie's recent performance is a result of the strategic repositioning measures implemented over the last two years, which are paying off. China remains La Prairie's key growth driver, with net sales up plus 28% in the third quarter and strong sell-out growth. Both outstanding e-commerce and impressive brick-and-mortar performance contributed to these results. Winning luxury skincare, especially in China, Our ability to succeed in such an environment is demonstrated by the exceptionally strong performance of our white caviar line, a key growth contributor in China. Based on our hero ingredient tiamidol, white caviar is the number one luxury brightening collection in China. We have also made good progress in expanding La Prairie's price range. In September, we launched our new entry line, Swiss Pristine, combining our scientific expertise with advanced biotechnology. The launch enables us to attract a new generation of consumers and selectively expand our distribution. The launch was accompanied by strong digital influence and retail activations across regions. Initial results are strong. Swiss Pristine is accelerating client recruitment reaching significantly younger consumers and generating strong early demand across regions. At the same time, we are seeing increased engagement from existing clients and encouraging cross-selling into our core franchises, reinforcing its potential as an entry line into a broader La Prairie portfolio. Now let's turn to Nivea. Net sales declined by 4.9% organically in the third quarter, excluding Russia, Nivea sales declined by 3.2% organically in the third quarter. While net sales dynamics improved compared to the second quarter, temporary selling headwinds continued to weigh on performance. Retailer disputes continued to negatively affect the third quarter, but have now been largely resolved with only a few remaining that will impact Q4. Q3 also continued to be impacted by phasing and destocking. While the fourth quarter will still be impacted, we expect this effect to gradually fade, leaving us with healthy stock levels by the end of the year. Nivea's sellout continued to grow globally in the third quarter, an early evidence that our rebalancing measures are starting to be effective. At the same time, our sellout growth remains below market, which is why we started implementing the second phase of our rebalancing, a comprehensive turnaround plan, Let me remind you of key pillars of our turnaround plan before highlighting some of the actions that are already underway. First, we are unlocking the full growth potential of Nivea and Thais portfolio across all categories. We are accelerating our innovation pipeline to respond faster to changing consumer needs and market trends. Second, we are reinforcing Nivea's accessibility and value for money propositions to drive penetration and volume. Third, we are fully leveraging Nivea's local relevance. While Nivea remains a global brand, we are increasing our ability to respond to local consumer needs and market dynamics. This is already reflected in our innovation pipeline with a stronger focus on local insights and proven regional franchises. Fourth, we are stepping up consumer-facing investments and focusing our resources on where they can have the greatest impact. Let me now show you how we are putting these priorities into action. One example is the launch of Phase Plus in Europe. Building on the success of Facial in emerging markets, we are bringing this proven consumer-relevant concept to Europe as Phase Plus, adapted to local needs. This is where we can leverage Nivea's global strengths and our fast-track approach to innovation, listening closely to local consumers, learning from what works in individual markets, and scaling the strongest ideas across regions. With currently four SKUs, FacePlus delivers well-known ingredients such as vitamin C, niacinamide, panthenol, and hyaluronic acid at an affordable price point of between 5 and 6 euros. Early traction is very positive, particularly in recruiting new consumers to Nivea. And while the initial launch focuses on moisturizing creams, our ambition is to build Face Plus into a broader face care franchise over time. Another example is the launch of our Sweet Treats shower and deodorant limited edition in Europe, with Germany as a focus market. Designed to engage young consumers and drive penetration, the range adds fragrance-led experiences to a core portfolio and responds directly to emerging consumer preferences. In Germany, we are supporting the launch with a fully digital media campaign and strong consumer activations with very encouraging initial consumer and market feedback. India is already a strong market for Nivea with continued double-digit growth and penetration gain. Over the last 12 months, we have added 10 million new consumers to the brand. Our ambition is to accelerate penetration through locally relevant innovation. One example is the expansion of Nivea Soft into the fast-growing gel moisturizer segment. The new serum-infused gel is tailored to local demand for lightweight, non-sticky hydration while adding skincare benefits through hyaluronic acid, niacinamide, and vitamin C. Supported by accessible formats and integrated media and influencer activation, The launch is designed to drive trials, recruit new consumers, and accelerate Nivea's growth in India. We are also stepping up consumer-facing investments and focusing our resources on where they can have the greatest impact. Looking ahead, our recently signed five-year partnership with Tour de France is a strong example. Starting in 2027, Nivea ASEAN will become a partner of one of the world's best-known sporting events, giving us a major platform to connect with consumers across Europe. Astrid will now give an overview on Teza, our performance by segment and region, as well as the outlook for the rest of the year. Over to you, Astrid.