Henkel: 'strong' organic growth sends shares higher
(CercleFinance.com) - Henkel said that it delivered "strong" organic sales growth of 3.
9% in the third quarter, with all three business units contributing.
The German consumer goods group's sales fell by 1.5% to five billion euros in the last quarter, although increased by 3.9% in organic terms, i.e. excluding foreign exchange effects, acquisitions and divestments.
The good performance is "partly due to catch-up effects from the second quarter, where the negative impacts of the COVID-19 pandemic were particularly severe," said Henkel's CEO Carsten Knobel.
Sales generated by the adhesive technologies unit decreased by 4.8%, although they rose by 1.3% in organic terms.
In the beauty care division, sales increased by 4.3% organically, driven by both volume and price.
Lastly, the laundry and home care business reported organic growth of 7.7%, helped primarily by a significant increase in volume.
Henkel - which scrapped its full-year forecast in April due to the pandemic - said it now expects organic sales to fall by 1% to 2% this year.
Its shares are currently up about 1% on the Frankfurt Stock Exchange.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
9% in the third quarter, with all three business units contributing.
The German consumer goods group's sales fell by 1.5% to five billion euros in the last quarter, although increased by 3.9% in organic terms, i.e. excluding foreign exchange effects, acquisitions and divestments.
The good performance is "partly due to catch-up effects from the second quarter, where the negative impacts of the COVID-19 pandemic were particularly severe," said Henkel's CEO Carsten Knobel.
Sales generated by the adhesive technologies unit decreased by 4.8%, although they rose by 1.3% in organic terms.
In the beauty care division, sales increased by 4.3% organically, driven by both volume and price.
Lastly, the laundry and home care business reported organic growth of 7.7%, helped primarily by a significant increase in volume.
Henkel - which scrapped its full-year forecast in April due to the pandemic - said it now expects organic sales to fall by 1% to 2% this year.
Its shares are currently up about 1% on the Frankfurt Stock Exchange.
Copyright (c) 2020 CercleFinance.com. All rights reserved.