THE WHAT? In an interview with the Financial Times, Henkel Chief Executive Officer Carsten Knobel warned that few companies would be able to survive a second lockdown.
THE DETAILS “Many companies were able to cushion the fallout from the first lockdown, but they would be harder hit by a second one,” he told the newspaper.
Indeed, on Friday, Henkel released new guidance for fiscal 2020 based on the premise that ‘there will be no far-reaching lockdowns in the core regions essential for the company in the fourth quarter of 2020’. The company expects organic sales growth of between -1 and -2 percent at group level in fiscal 2020 after the third quarter saw strong organic sales growth (+3.9 percent), with all business units reporting growth, especially the Laundry & Home Care and Beauty Care divisions.
THE WHY? “The organic sales development in the third quarter reflects our robust, diversified portfolio with successful brands and innovative technologies for our customers in the industrial and consumer goods business. We are particularly pleased that all our business units showed a positive development. This was partly due to catch-up effects from the second quarter, which was heavily burdened by the corona pandemic. We expect to feel the negative effects of the pandemic in the fourth quarter as well, but in our forecast for the year we are not assuming a further extensive lockdown, as we saw in many countries especially in the second quarter. All in all, we are convinced to be on the right track with our strategic focus on purposeful growth and to emerge stronger from the crisis. Our special thanks go to our employees around the world, whose great commitment is making a decisive contribution to this,” summarized Carsten Knobel.