Henkel, the German consumer goods company, announced a slight increase in its guidance for 2024 on Friday, attributing it to a strong performance in the first quarter that boosted its sales and earnings outlook. The company has raised its forecast for full-year organic sales growth, now anticipating an increase ranging from 2.5% to 4.5%, compared to the previous target of 2.0% to 4.0%.
Additionally, Henkel now expects an adjusted return on sales (EBIT margin) between 13.0% and 14.0%, up from the previous target range of 12.0% to 13.5%.
Henkel has indicated that the increased expectations for 2024 are backed by positive performances from both its business units. In Adhesive Technologies, stronger overall business dynamics and improved gross margin development, particularly in the Electronics sector, are driving earnings growth despite challenging market conditions.
Within the Consumer Brands business unit, strategic measures and initiatives are positively impacting sales, gross margins, and earnings. This progress is bolstered by robust performance in the Hair business, ongoing implementation of portfolio strategies, and strong growth in core brands and innovations. Henkel continues to prioritize investments in innovation and marketing to sustain growth momentum.
Furthermore, Henkel has revised its outlook regarding the effects of acquisitions/divestments and currency fluctuations on sales. Recent acquisitions, such as Seal for Life Industries and Vidal Sassoon in China, have contributed earlier than expected to sales and earnings, accelerating their impact on the company’s financial performance.
Preliminary figures indicate that quarterly sales reached 5.3 billion euros ($5.69 billion), reflecting a 3% organic growth. Further details on sales development will be provided by the company on May 8th.
Carsten Knobel, CEO of Henkel said, “The very good start to the year and today’s increase in the full-year outlook demonstrate very clearly that we are on the right track with our growth agenda. We have always pointed out that we want to deliver. And that is what we are doing. The changes initiated in both business units are showing clear results.”
