Henkel AG & Co., the German consumer-goods and chemicals group, has raised its expectations for the year after experiencing a boost in sales during the third quarter. The company reported sales of €5.44 billion ($5.83 billion) between July and September, which aligns with analysts’ predictions in a FactSet poll. This represents a 2.8% increase in organic growth compared to the previous year.
The decline in nominal sales by 9% was primarily attributed to foreign-exchange effects and Henkel’s withdrawal from the Russian market. However, the organic growth was driven by higher prices, particularly in the consumer division, despite declining volumes in both sectors.
Henkel noted that while volume development remained negative, there was a noticeable improvement compared to the second quarter. The company expressed optimism about its future growth prospects, stating that it remains on track to achieve its strategic priorities.
As a result, Henkel has revised its sales growth forecast for the year, expecting an organic growth range of 3.5%-4.5%, up from the previous range of 2.5%-4.5%. Additionally, the projected operating margin has also been adjusted to 11.5%-12.5%, compared to the previous forecast of 11.0%-12.5%.
In the previous fiscal year, Henkel reported sales of €22.4 billion with an operating margin of 8.1%.
Chief Executive Carsten Knobel expressed his satisfaction with the company’s performance, stating, “We have consistently driven our strategic priorities in both business units throughout the third quarter. Therefore, we are confident in our ability to generate further growth.”
