Henkel, the German chemicals and consumer-goods company, has announced an improved outlook for the full year following an increase in sales and earnings in the first half of the year. Despite facing a persistently challenging environment marked by high material and logistic prices, Henkel remains optimistic about its performance.
Positive Growth Projections
Henkel now expects organic sales growth of between 2.5% and 4.5% for 2023, surpassing its previous forecast of between 1% and 3%. The company also anticipates an adjusted earnings before interest and taxes margin between 11% and 12.5%, compared to the previous range of 10%-12%. Furthermore, adjusted earnings per preferred shares are projected to rise by 5% to 20% at constant exchange rates, as opposed to the prior range of minus 10% to 10%.
First Half Results
In the first six months of the year, Henkel reported EBIT of 864 million euros ($948.1 million), representing an increase from EUR684 million in the same period last year. Adjusted EBIT saw a notable rise of 7.6% to EUR1.25 billion, while the adjusted EBIT margin experienced an 80 basis point increase to 11.5%. Total sales amounted to EUR10.93 billion, with organic growth reaching 4.9%.
CEO’s Optimistic Outlook
Henkel Chief Executive Carsten Knobel expressed satisfaction with the company’s performance, stating, “We achieved very strong growth in both business units. At the same time, we succeeded in significantly improving our earnings despite the continuing headwinds from high material and logistic prices.”