Henkel cautious on prices, provide chains, whilst gross sales surge

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

Henkel was attempting to restrict the influence on earnings, 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 well-liked share will increase within the excessive single-digit proportion 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 Co mentioned final month it expects core earnings to extend this yr, whereas warning of an influence of practically $ 2 billion from the hike. expenditure on uncooked supplies and transport. It depends on worth will increase and value reductions to cushion the influence.

Henkel’s second-quarter gross sales grew 15% organically to 4.96 billion euros ($ 5.82 billion), just under 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 top of 2021, mentioned it has already reached round € 350m of the goal, largely 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)

(Reporting by Emma Thomasson Modifying by Tomasz Janowski, Caroline Copley and Barbara Lewis)

About Edith J.

Check Also

Here is why I am digging Rio Tinto inventory worth proper now

Picture supply: Getty Pictures The Rio Tinto Restricted (ASX: RIO) The inventory worth seems to …