THE WHAT? Henkel has hailed its first quarter of fiscal 2021 as ‘a very good start’ with organic sales growth of 7.7 percent (nominal +0.8 percent), for a total of €4,968 million, despite the continuing coronavirus crisis.
THE DETAILS Sales growth was driven largely by the Adhesive Technologies unit, which saw sales soar 13 percent while Beauty Care generated more modest organic sales growth of 2.3 percent and Laundry & Home Care put on 4.1 percent.
On a geographical basis, emerging markets posted growth of 18.5 percent, while mature markets delivered a more sedate 0.5 percent uptick.
As a result, the German FMCG manufacturer has raised its guidance for fiscal 2021 and is now predicting organic sales growth of 4 to 6 percent and an EBIT margin of 14 to 15 percent.
THE WHY? Henkel CEO Carsten Knobel, explains, “We achieved a very good business performance in the first quarter, to which all our business units contributed. With industrial demand recovering at a stronger rate than originally expected, we are optimistic about business development over the rest of the year, despite the continued uncertainty in our markets. Following the strong start to the year, we have today raised our sales and earnings guidance.”