FMCG giant Henkel has raised its full-year outlook after its operations rose above pre-pandemic levels in the first half of the year. Nevertheless, the German company is concerned about rising prices and strained supply chains.
Impact on global economy
Henkel’s sales rose 15 % to 4.96 billion euros in the second quarter, just below the average analyst forecast of 4.98 billion euros, Reuters reports. The adhesives division, which mainly sells to the automotive and electronics industries and accounts for roughly half of total sales, posted organic growth of 28.5 %, boosted by the global economic recovery.
The beauty and personal care business benefited from the reopening of hair salons and grew organically by 8.2 %. Currency effects, however, weighed heavily on the detergent division, which reported revenues down by more than 5 %.
For the full year, Henkel now expects an organic sales growth of 6 to 8 %, compared to 4 to 6 % previously. The operating profit margin is likely to be slightly lower than previously forecast: 13.5 to 14.5 % instead of the earlier 14 to 15 %. However, there is – once again – a cautionary note: “The exceptionally sharp rise in raw material prices and strained supply chains will weigh heavily on the economy in the further course of the year”, CEO Carsten Knobel said.
