Henkel raises its forecasts for 2021

Henkel raises the outlook as the demand for adhesives recovers:

• 2021 forecasts for organic sales 4-6%, from 2-5%.
• Sales for the first quarter increased by 7.7% to 4.97 billion. Against a consensus for 4, 98 billion
• Adhesive sales for the first quarter increased by 13%, laundry and home care – by 4.1%.

German consumer goods group Henkel HEN raised its year-round outlook after its adhesives business reported a strong first quarter amid a faster-than-expected recovery in the automotive and electronics industries.

Henkel said it now expects sales to grow organically by 4-6% in 2021, compared with a previous forecast of 2-5%, while earnings per share should increase from the previous 5-15%. / p>

The upper end of the revenue guidelines is not limited to 15%, said Chief Financial Officer Marko Svoboda, adding that Henkel has seen continued strong advances in adhesives.

Henkel, which produces Schwarzkopf hair care products, said it expects the hairdresser’s business to recover significantly as the coronavirus block will calm down, while demand for cleaning products, which has been boosted by the pandemic, should is normalizing.

Less than 10% of hair salons are still closed, while Henkel has seen a very good development in the US market for professional hair care products, as most salons have reopened there, said CEO Carsten Nobel. .

First-quarter sales rose 7.7% to 4.97 billion euros ($ 5.97 billion), ahead of the company’s March 31 guidance, driven by 13% growth for the adhesive and 4.1% growth for the laundry and home care business.

Henkel said sales of its adhesives for the automotive and electronics sectors have grown at double-digit rates, with sales strong in both emerging and mature markets.

Henkel sees opportunities to pass on higher raw material costs by raising prices, especially for adhesives in the electronics industry.

Henkel said the detergent business, which competes with Procter & amp; Gamble Co PG performed well, with its brands Persil, Pril, Bref and Somat reporting double-digit growth, aided by the pandemic demand for household cleaning.

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