Henkel to Maintain Russian Business But Adapt to Developments

By Ulrike Dauer and Ed Frankl

Henkel will continue its business in Russia for now, but will monitor developments closely, Chairwoman Simone Bagel-Trah said at the company's annual general meeting on Monday.

The German consumer-goods and chemical company will continue to adapt its decisions in the country accordingly, and takes criticism and questions associated with its position seriously, Ms. Bagel-Trah added.

Chief Financial Officer Marco Swoboda also said that Henkel doesn't see the need for unscheduled write-downs on its assets in Russia and Ukraine.

Although Henkel, which makes Persil, Schwarzkopf and Dial, has stopped investments, advertising and sponsorship in Russia, production is continuing at its 11 plants in the country in compliance with international sanctions.

"These are mainly products for everyday use, for example cleaning and hygiene products," Chief Executive Carsten Knobel said in a speech to the AGM.

Mr. Knobel added that Henkel bears responsibility for its 2,500 employees in Russia.

"A complete withdrawal from Russian business can have far-reaching consequences, also for our local employees," he said, including expropriations and that local managers may be held liable if the company stops doing business.

In Ukraine, where Henkel employs 600 people, the company's four production sites have been closed since the invasion.

The Dusseldorf-based company retained its full-year targets, which Mr. Swoboda called ambitious, as the effects of the war in Ukraine on the global economy couldn't yet be estimated.

Write to Ulrike Dauer at [e-mail]

(END) Dow Jones Newswires

April 04, 2022 08:58 ET (12:58 GMT)

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