During the first quarter of its current fiscal year, German FMCG giant Henkel performed slightly below expectations. The glue division and care products were particularly affected by difficulties.
Mixed performance
The first quarter turnover saw a nominal increase of 2.8 % to 4.97 billion euros, slightly below the analysts’ consensus of 4.99 billion. Organic turnover increased by 0.7 %. Acquisitions and divestitures brought about a turnover rise of 0.6 % and currency effects added a positive impact of 1.5 % on that turnover.
The glue division, which represents nearly half of total sales, experienced difficulties due to delays in the electronics sector and the automobile industry and suffered an organic turnover decrease of 0.8 %. The setback was even more starkly visible in beauty and care products, where turnover dropped by 2.2 % due to poor performance in Western Europe and China. Washing and maintenance products, on the other hand, saw an organic turnover growth of 4.7 %, thanks to the successful launches of new products and innovations.
The company result (EBIT) went down 5.6 % to 795 million euros. Despite the slightly disappointing results, Henkel confirms the prospects for the full financial year, which predict an organic growth of 2 to 4 % across the whole year.
