Henkel sticks by FY forecast despite “subdued” Q1 | Progresiv

Henkel has reiterated its full-year forecasts, despite “subdued business development” in its fiscal first quarter.

The owner of brands such as Persil, Dial, and Purex said its results in the quarter were hurt by delivery difficulties in North America, which were caused due to a change in the transportation and logistics systems.

However, the group said those problems have been “identified and are being currently solved”, adding that it expects to “return to usual service levels” in the current quarter. It also stressed that those difficulties have not affected its Hair Professional and Adhesives businesses, which are showing “very good development”.

For the quarter, Henkel expects its Laundry & Home Care and Beauty Care units to report a decline in organic sales, although overall sales are expected to be slightly positive on the same basis.

It also expects to meet its full-year target of organic sales growth of 2%-4%, with adjusted operating margin set to grow to more than 17.5%. (www.kamcity.com)