Henkel reports organic sales growth of 3.7 percent; trims full year forecast due to raw material price hike and logistics costs – GlobalCosmeticsNews

THE WHAT? Henkel has reported a Q3 organic sales growth of 3.7 percent YOY and 7.5 percent vs 2019, with the rise driven mainly by emerging markets.

THE DETAILS The company achieved group sales of around 5.1 billion euros, thanks to ‘positive pricing in all business units.’
Beauty care sales fell 6.5 percent to 934 million euros, while organic sales were down 3 percent YOY. The consumer business was down due to a significantly lower sales development in body care, said to be due to the ‘continued normalization of demand for soap products’ following the higher demand in 2020 during the pandemic.
The professional beauty business area continued a positive sales performance, with strong growth in North America and a double digit increase in sales in Africa/Middle East and Eastern Europe regions contributing to the growth.

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THE WHY? According to a press release, the stable volume development was ‘characterized by a normalization of demand in consumer businesses and by the ongoing recovery in industrial production.’
However, Henkel has updated and trimmed its full year guidance to 13.5 percent, down from the previously predicted 13.5 – 14.5 percent.
This was due to the anticipated significant recovery in demand, particularly in the industrial and professional businesses, set to have an impact on its earnings. Likewise the price hike of raw materials as well ‘globally strained supply chains’ are contributing factors.

Source : Reports organic sales