Henkel 1st Half Sales Rose But Earnings Fell on Increased Prices

By Maitane Sardon

Henkel AG & Co. said Monday that sales rose in the first half of the year but that earnings fell, hurt by increasing raw-material and logistics prices.

The German chemicals and consumer-goods company posted first-half earnings before interest and taxes of 684 million euros ($701.7 million) compared with EUR1.30 billion a year earlier. Net income was EUR447 million, down from EUR942 million, while adjusted operating profit fell to EUR1.17 billion from EUR1.43 billion.

Henkel said earnings in the first half of the year were hurt by "the drastic rise in material and logistics prices", which it couldn't offset by stepping up its pricing initiatives or implementing cost management measures.

The maker of Persil and Schwarzkopf reported sales for the six months to the end of June of EUR10.91 billion compared with EUR9.93 billion in the prior-year period, with the rise driven by a good performance across all business regions and units, it said.

The German company backed its previously given guidance for adjusted operating margin in the full fiscal year but lifted its sales growth forecast. It said it still sees an adjusted operating margin of 9%-11% for the year but it now sees organic sales growth at between 4.5% and 6.5% in fiscal 2022, compared with a previous targeted range of between 3.5% and 5.5% in 2022.

Write to Maitane Sardon at [e-mail]

(END) Dow Jones Newswires

August 15, 2022 02:22 ET (06:22 GMT)

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