FRANKFURT, (Reuters) –Beiersdorf, maker of Nivea products for skin and Tesa glue has lowered its forecast for full year sales due to ongoing supply chain problems in the automotive sector and extensive Chinese lockdowns.

Due to the growth of the Chinese electronic business, the Tesa adhesives business, which supplies the automotive and electronics markets, was the fastest growing unit in Beiersdorf in 2021.

The recent COVID-19 increase in China has hampered the unit’s growth. Beiersdorf stated that Tesa now anticipates sales to rise in the low- to mid-single-digit range by 2022. This is in contrast to the previous goal of mid-single-digit growth.

Astrid Hermann, chief financial officer, said that “I believe the second quarter will prove to be challenging.”

Shanghai is the center of much of Asia’s electronics business. You can see how much of the electronics industry in Asia has been affected by the news. “We have to watch how that turns out and what we do next,” she stated.

Beiersdorf confirmed the preliminary results for the first quarter published by Beiersdorf on April 8, and set targets to its consumer goods division announced on March 1.