Henkel Cuts 2022 Margin Target Amid Ukraine War; 1Q Sales Rose
29 April 2022 - 5:28PM
Dow Jones News
By Joshua Kirby
Henkel AG & Co. KGaA said Friday that it expects a lower
earnings margin this year than previously targeted, as raw material
prices surge as a result of the war in Ukraine.
The German consumer-goods company now expects an adjusted
operating margin of 9%-11%, from 11.5%-13.5% previously. This
adjustment is due to rising raw-material prices and higher
logistics costs stemming from the Russia-Ukraine war, as well as
the effects of exiting operations in Russia and Belarus following
the invasion, Henkel said.
The company nevertheless said it expects higher sales growth for
the year than previously targeted, after first-quarter sales rose
on higher prices and with a slight decline in volumes, it said.
According to preliminary figures, the company's sales rose by 7.1%
to 5.3 billion euros ($5.56 billion) in the quarter.
As such, Henkel said it is now aiming for full-year organic
growth between 3.5% and 5.5% in fiscal 2022, compared with a
previous targeted range of 2% to 4%.
The company will set out full first-quarter results on May
5.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
April 29, 2022 03:13 ET (07:13 GMT)
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