Henkel raises expectations as merger races ahead of schedule

The merger of both B2C brand divisions at Henkel is ahead of schedule. In addition, the FMCG group’s glues are selling better than expected. The manufacturer of Pritt and Persil is therefore raising its sales forecast.

Smoother than expected

Henkel announced a major restructuring earlier this year, with its Laundry & Home Care and Beauty Care divisions merging into one new division: Consumer Brands. In most regions, this reorganisation is now ahead of schedule. From October, Wolfgang König will take over the lead in both divisions, Henkel announced at its Financial Markets Day.

At the same time, the Schwarzkopf and Pattex producer raises its sales forecast for this fiscal year. Previously, the group had expected organic sales growth of 4.5 to 6.5 %, but it now expects a 5.5 to 7.5 % turnover growth. The Adhesive Technologies division, in particular, is doing remarkably well – also in the third quarter.

“In addition, we are continuing to work intensively on comprehensive measures to compensate as far as possible the impact of the drastic increase in raw material, logistics and energy costs on our earnings development,” says CEO Carsten Knobel. While the EBIT margin at group level should remain unchanged (9 – 11 %), earnings per share will fall by 15 to even 35 %, the group fears.