Henkel lifted its full-year guidance for 2023 sales and earnings as it posted second-quarter growth that was bolstered by double-digit price increases at both its adhesives and its consumer goods businesses.
The German group now sees its full-year organic sales growth coming in at 2.5% to 4.5%, compared with a previous outlook of 1% to 3%.
Analysts on average expect organic growth of 3.7%, according to a consensus by Vara Research.
Henkel now sees its adjusted return on sales (EBIT margin) at 11.0% to 12.5% for the year, compared with previous guidance for 10.0% to 12.0% and consensus for 11.1%.
Shares in Henkel rose 1.5% in pre-market trade at brokerage Lang & Schwarz.
'Very Strong Growth'
In the second quarter, group sales at Henkel rose by 4.9% to €10.9 billion, with the business reporting a positive sales performance in both its business units, Consumer Brands and Adhesive Technologies, the latter of which recently marked 100 years of operation.
Consumer Brands reported 5.7% organic sales growth in the first half of the year, driven by its Laundry & Home Care and Hair business segments, while Adhesive Technologies saw sales up 4.7% in the half, the group noted.
“We achieved very strong growth in both business units," commented Henkel CEO Carsten Knobel. "At the same time, we succeeded in significantly improving our earnings despite the continuing headwinds from high material and logistic prices."
Growth Agenda
Knobel added that the group also made "good progress" in implementing its strategic growth agenda during the first half of the year, advancing the integration of its Consumer Brands unit quicker than planned, as well as re-aligning the organisational structure of Adhesive Technologies.
"In addition, we are driving forward important initiatives in the areas of sustainability and digitalisation to further enhance our competitive position,” he added.
Additional reporting by ESM
