Mon. Dec 6th, 2021

© Reuters. PHOTO FILE: A logo of the Henkel consumer goods group is displayed before the annual press conference in Duesseldorf on March 8, 2012. REUTERS / Ina Fassbender / File Photo

BERLIN (Reuters) – German consumer goods group Henkel has expressed concern over rising prices and oversupply in supply chains, although it has raised its sales prospects throughout the year. year Thursday after its business bounced above pre-crisis levels in the first half.

“The exceptionally strong rise in commodity prices and the tension in supply chains will weigh heavily on the economy in the next course of the year,” said Carsten Knobel, chief executive.

Henkel was trying to limit the impact on profits, he added, and also said growth rates would likely slow in the second half of 2021 compared to the first half, as the rise in industrial demand began in the second half. mid-2020.

Henkel said it expected 2021 sales to increase 6-8% organically, compared to previous forecasts of 4-6%, and confirmed that it expected earnings per preferred share to increase in the high single-digit percentage. in the middle of adolescence.

It slightly lowered the forecast of its operating profit margin to 13.5-14.5% of sales compared to the previous 14-15%.

Consumer goods group Procter & Gamble (NYSE 🙂 Co. said last month that it expects higher base earnings this year, while warning of a success of nearly $ 2 billion due to increased spending on raw materials and transportation. To cushion the impact, it relies on price increases and cost reductions.

Henkel’s second-quarter sales rose 15% organically, to 4.96 billion euros ($ 5.82 million), just down from the average consensus of analysts by 4.988 billion.

The adhesives unit, which supplies the automotive and electronics industries and accounts for nearly half of sales, recorded organic growth of 28.5%, helped by the global economic recovery.

Hair care products maker Schwarzkopf said its beauty products business saw sales rise 8.2% in the second quarter as beauty salons opened after the closures .

Henkel, which aims to divest or discontinue brands and categories worth about 500 million euros by the end of 2021, said it had already reached some 350 million euros of the target, mainly in the business of consumption.

German rival Beiersdorf also reported last week on strong demand for adhesives and their dermatological marks, which boosted their actions.

($ 1 = $ 0.8516)

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