Despite negative exchange rates and logistical issues in the United States, Henkel still sees positive signs in the first quarter. Its glue division outperformed the laundry and beauty divisions.
Targets a 2 to 4 % growth
Henkel's first quarter turnover reached 4.8 billion euro, down 4.5 %. However, excluding exchange rate fluctuations, acquisitions and divestments, there was a 1.1 % organic turnover increase. “We faced extremely negative currency effects, impacting our reported turnover by 440 million euro”, CEO Hans Van Bylen said. It also impacted company profit.
The setback was partially offset by the glue division’s strong turnover growth. The laundry detergent and beauty divisions struggled with supply difficulties in North America, but those have been taken care of. “We are well on our way to reach normal service levels in the course of the second quarter.”
Turnover grew a lot in the emerging markets, but remained stable in Western Europe (+ 0.2 %). For the full year, Henkel forecasts the dubious market conditions and currency variations will continue to have their impact. Resources and packaging will also become more expensive. All in all, the company targets a 2 to 4 % organic turnover growth.