We have received a lot of questions from investors on Beiersdorf''s innovation pipeline While we are cognisant of some areas of the beauty market starting to slow and of the likely weather-driven headwinds in sun care in the near term, we have received a lot of questions from investors regarding the likely medium- to long-term sales contribution from Beiersdorf''s two upcoming innovations announced at the recent CMD - this is the topic we address in this report. Epicelline will be Beiersdorf''s first broad anti-ageing offering While Beiersdorf has some anti-ageing products with specific focus (e.g. age spots or wrinkles), Epicelline will be its first ingredient with a broader anti-ageing claim to be rolled out across Eucerin, Nivea, La Prairie, and Chantecaille, and thus should be incremental to the existing product offerings. Opportunity in acne treatments, which are expected to outperform skin care Acne treatments currently account for only c.3% of the skin care market, with severe cases treated with antibiotics or prescription creams. With 1.2bn people globally suffering from acne, there is a clear opportunity for effective OTC skin care products. For reference, Euromonitor expects acne treatments to outperform skin care with a 2023-28 CAGR of +7.9% vs. overall skin care at +6.9%. We estimate innovation will contribute c.1.4% p.a. to Consumer LFL in the next decade Beiersdorf''s last big innovation (Thiamidol, launched in 2018) should be a good gauge of the likely sales evolution for the upcoming launches: products with Thiamidol reached c.EUR350m in sales in FY23 (c.4.5% of Consumer), on average contributing ~1% to Consumer LFL each year in FY19-23. Assuming a similar trajectory for the upcoming launches (and further growth runway for Thiamidol), we estimate that Thiamidol/Epicelline/S-Biomedic will, on average, contribute c.1.4% to Consumer LFL in FY24-33, which should underpin Beiersdorf''s outperformance vs. the market; both innovations are...