Henkel cautious on prices, provide chains, at the same time as gross sales bounce By Reuters

© Reuters. FILE PHOTO: A brand of the buyer items group Henkel is pictured forward of its annual press convention in Düsseldorf on March 8, 2012. REUTERS / Ina Fassbender / File Picture

BERLIN (Reuters) – German shopper items group Henkel expressed concern over rising costs and overloaded provide chains, though it raised its full-year gross sales outlook on Thursday after its exercise rebounded above pre-crisis ranges within the first half of the yr.

“The exceptionally robust rise in commodity costs and strained provide chains will weigh closely on the economic system later this yr,” mentioned Managing Director Carsten Knobel.

Henkel was making an attempt to restrict the affect on income, he added, and in addition mentioned development charges would probably gradual within the second half of 2021 in comparison with the primary half, because the rebound in industrial demand began within the second. semester 2020.

Henkel mentioned he anticipated 2021 gross sales to extend 6-8%, up from earlier forecast of 4-6%, and confirmed he anticipated revenue per most popular share will increase within the excessive single-digit share vary by means of mid-teens.

It lowered its working revenue margin forecast barely to 13.5-14.5% of gross sales, from 14-15% beforehand.

Client items group Procter & Gamble (NYSE 🙂 Co mentioned final month that it expects core income to extend this yr, whereas warning of an affect of practically $ 2 billion. because of the improve in expenditure on uncooked supplies and transport. It depends on value will increase and value reductions to cushion the affect.

Henkel’s second-quarter gross sales grew 15% organically to 4.96 billion euros ($ 5.82 billion), slightly below the common analyst consensus of 4.98 billion.

The adhesives unit, which provides the automotive and electronics industries and accounts for nearly half of gross sales, recorded natural development of 28.5%, helped by the worldwide financial restoration.

Hair care merchandise maker Schwarzkopf mentioned its magnificence care enterprise noticed gross sales rise 8.2% within the second quarter as hair salons reopened after closings.

Henkel, which goals to divest or discontinue manufacturers and classes price round € 500m by the tip of 2021, mentioned it has already reached round € 350m of the goal, principally within the shopper sector.

German rival Beiersdorf additionally reported robust demand for adhesives and its pores and skin manufacturers final week, driving up its shares.

($ 1 = 0.8516 euros)

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