Henkel Raises Full-Year Guidance For 2023, Sees Q2 Sales Up
Henkel has revised its full-year projections for 2023 upwards, indicating increased sales and earnings. The company’s second-quarter growth was buoyed by substantial double-digit price hikes across both its adhesive and consumer goods divisions.
The German conglomerate now anticipates its full-year organic sales growth to be between 2.5% and 4.5%, a considerable improvement from its previous forecast of 1% to 3%. According to Vara Research’s consensus, analysts expect an average organic growth of 3.7%.
Henkel has also adjusted its anticipated adjusted return on sales (EBIT margin) for the year to range between 11.0% and 12.5%, surpassing its previous projection of 10.0% to 12.0%. The consensus figure is 11.1%.
In the second quarter, Henkel reported a 4.9% increase in group sales, amounting to €10.9 billion. This growth was witnessed across both its Consumer Brands and Adhesive Technologies business units.
The Consumer Brands segment experienced 5.7% organic sales growth in the first half of the year, primarily driven by the Laundry & Home Care and Hair segments. The Adhesive Technologies division saw sales rise by 4.7% in the same period.
Henkel’s CEO, Carsten Knobel, highlighted the robust growth in both business units, despite the challenges posed by elevated material and logistics prices.
He noted that the company had also made significant progress in executing its strategic growth agenda, including accelerating the integration of the Consumer Brands unit and restructuring the organizational framework of Adhesive Technologies.
Additionally, Henkel is actively pursuing sustainability and digitalization initiatives to enhance its competitive standing. The positive results and ongoing efforts point to a promising trajectory for the company.
