THE WHAT? Henkel has been spared the nose-diving sales experienced by other cosmetics manufacturers over the first quarter of fiscal 2020. The German producer of Schwarzkopf reported a modest 0.8 percent drop in group sales over the first three months of the year to €4.9 billion.
THE DETAILS The Beauty Care unit saw sales drop a steeped 2.6 percent, but Laundry & Home Care saved the day, rising 5.3 percent.
However, CEO Carsten Knobel cautioned that the crisis was far from over. “We are currently facing a very challenging situation. The COVID-19 pandemic has affected all areas of life and also hit the global economy very hard. Nevertheless, we achieved an overall robust sales performance in the first quarter.”
THE WHY? Knobel explained that the company had ‘done everything possible; to continue its business activities, despite these difficult circumstances, and to continue serving its customers. Although the salon business suffered considerably from salon closures, strong demand for laundry and home care products helped save the day.