Henkel is on the rise, but profits aren’t lasting

Henkel, the German manufacturer of Persil, Schwarzkopf, and Pritt, is growing much faster than expected and is raising its annual forecast. However, sharply rising raw material prices threaten to erode profit margins.

Persil and Schwarzkopf on a roll

In the third quarter, Henkel reported an 11% increase in revenue to 5.71 billion euros. Notably, Henkel’s growth is not solely due to higher prices. While higher prices contributed an additional 5.4 percentage points to revenue growth, sales volumes also rose by 1.1%. Consumers and industrial customers are therefore continuing to buy, despite the price increases.