Henkel is even more optimistic after good numbers
Many companies in Germany are struggling and barely keeping afloat. However, there are also businesses thriving. Among them is the Düsseldorf-based traditional company Henkel, which has posted strong figures.
The consumer goods company Henkel is looking to the future with optimism after raising its outlook for 2024. "We are on the right track for further profitable growth," said Henkel CEO Carsten Knobel. "This is also reflected in the adjustment of our medium- to long-term financial ambitions: We are confident that we will achieve our sales and earnings targets in the medium term," he announced.
The targets presented at the beginning of 2022 include achieving an organic sales growth of three to four percent for the group, as well as a adjusted operating profit margin (adjusted EBIT margin) of around 16 percent. Simultaneously, Henkel is focusing on continuously improving its free cash flow.
Henkel had already presented preliminary figures for the first half of the year in mid-July and slightly raised its forecast for 2024. In the first half of the year, the manufacturer of Pritt and Persil achieved an organic sales growth of 2.9 percent. Sales were at 10.8 billion euros. Adjusted operating profit (EBIT) increased by 28.4 percent to 1.6 billion euros. The adjusted EBIT margin rose significantly to 14.9 (previous year: 11.5) percent.
For the full year, the Düsseldorf-based company now expects an adjusted operating profit margin of 13.5 to 14.5 percent. The adjusted earnings per preferred share are expected to increase by 20.0 to 30.0 percent at constant exchange rates. Henkel expects organic sales growth to remain at 2.5 to 4.5 percent.
Knobel had merged the cosmetics and laundry detergent businesses to reduce costs and boost growth, a move that is now paying off. The second pillar of the Düsseldorf DAX company is the adhesives business.
Although some German companies are facing challenges, Henkel, as an other example, is experiencing success and raising its 2024 outlook. The strong performance of Henkel, known for brands like Pritt and Persil, is evident in its increased adjusted EBIT margin and organic sales growth.
