Henkel AG & Co. KGaA Optimistically Revises 2024 Financial Forecast

Henkel AG & Co. KGaA has updated its financial forecast for 2024, reflecting an improved outlook in both sales and earnings projections. Drawing on robust business performance in early 2024, the Management Board has revised expected growth based on the company's results and upcoming year predictions. Notably, organic sales growth projections have risen from 2.0-4.0% to 2.5-4.5%. Specifically, the Consumer Brands sector now anticipates growth at 3.0-5.0%, up from the previous 2.0-4.0%.

The adjustments extended to profitability metrics, with the adjusted return on sales now set at 13.0-14.0%, climbing from earlier estimates of 12.0-13.5%. Furthermore, the Adhesive Technologies and Consumer Brands have shown respective profitability forecasts, each increasing by one percentage point. The adjusted earnings per share (EPS) are now expected to surge by 15.0-25.0% at constant exchange rates, a significant rise from the prior 5.0-20.0% range.

These optimistic revisions follow quicker-than-anticipated progress in integrating recent acquisitions, such as Seal for Life Industries and Vidal Sassoon in China, which have already started contributing to Henkel's financials. Additionally, currency effects on sales, although still a hindrance, are less severe than initially feared. The report confirmed expectations for direct material costs to remain flat and provided figures for restructuring expenses and future investments.

The detailed financial results for the first quarter will be disclosed on May 8, 2024, but preliminary numbers are promising, featuring a Group sales high of €5.3 billion and a notable organic sales growth in both primary business sectors.