Henkel takes earnings hit from raw material prices

BERLIN (Nov 8): German client items group Henkel trimmed its full-year earnings outlook on Monday, saying it couldn’t totally compensate for a spike in raw material prices and it additionally expects an influence from adjustments in overseas trade charges.
“Tight provide chains and rising raw material and transport prices are proving to be significantly difficult,” chief government Carsten Knobel stated in an announcement.
The maker of Persil detergent and Schwarzkopf haircare merchandise stated it nonetheless expects 2021 natural gross sales progress of 6%-8% after third-quarter gross sales rose an natural 3.5% to €5.1 billion (US$5.89 billion), in keeping with common analyst forecasts.
But it trimmed its forecast for 2021 adjusted earnings per most well-liked share at fixed trade charges to a share rise within the excessive single digits, from a earlier vary of excessive single digits to mid-teens.
It stated it now expects an adjusted working earnings margin of round 13.5% of gross sales in contrast with a earlier 13.5%-14.5%.
In addition to the influence of upper raw material prices, it stated it additionally anticipated adjustments in trade charges to adversely have an effect on earnings.
Henkel’s adhesives unit, which provides the automotive and electronics industries and accounts for nearly half of gross sales, reported natural gross sales progress of seven%, despite the fact that it stated the automotive and metals enterprise noticed a slight contraction.
The laundry and home-care unit noticed gross sales rise 2%, however the beauty-care enterprise reported a 3% fall, primarily on account of a drop within the body-care class, whilst gross sales have been robust for skilled haircare merchandise.

https://www.theedgemarkets.com/article/henkel-takes-earnings-hit-raw-material-prices

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