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Henkel confirms outlook for 2019

Henkel confirms outlook for 2019
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In the third quarter, Henkel has performed in line with expectations. The German group sent out a profit warning earlier this year, but is now staying in line with its forecasts.

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A difficult market

Henkel claims to still be suffering from a "difficult market environment". In nominal terms, sales increased by 0.8?% to 5.08?billion euros, although on an organic basis revenue fell by 0.3?%. Currency effects resulted in a positive impact of 0.7?% on sales growth. Operating profit fell by 8.2?% from 926?million to 850?million euros.

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The adhesive technologies business unit and beauty care business unit fell organically by 2.4?% and 2.2?%, respectively, as a result of lower demand in key sectors. The laundry and home care business unit, on the other hand, achieved organic sales growth of 4?%.

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In August, Henkel lowered its forecasts for 2019 since it did not expect to see any improvement for the rest of the year. The company stands by its forecast for organic revenue growth of 0?to 2?% at group level. The profit is expected to be 7?to 9?% lower than a year ago.

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