Henkel has announced its results for the second quarter of the financial year. The German manufacturer of Schwarzkopf saw sales fall for the first time in a decade (-0.4 percent to €5,12 million), which it attributed to a disappointing performance by its beauty care division.
“The development of the Beauty Care Retail business was significantly below our expectations,” said CEO Hans Van Bylen. “On the one hand, this was due to not satisfying developments in mature markets such as North America and Western Europe. In China, the Retail business was impacted by ongoing stock adjustments. In addition, marketing and sales expenses were higher overall,” commented Hans Van Bylen. “The Professional business, however, continued its strong performance.”
As a result – and because Henkel is no longer expecting industrial demand to increase in the second half of the year, or its beauty care business to pick up, the company revised its guidance for the fiscal year downwards, with sales previously predicted to grow 2 to 4 percent now expected to increase just 0 to 2 percent and beauty sales expected to be flat or contract, dropping up to 2 percent.