Henkel AG & Co. KGaA: Henkel provides new outlook for fiscal 2020 / Preliminary figures for the third quarter 2020
D?sseldorf, 2020-10-09T08:15+02:00 (MESZ)
Henkel provides new outlook for fiscal 2020 Preliminary figures for the third quarter 2020
Based on the business development in the first nine months of 2020 and the current assumptions regarding the business performance in the fourth quarter, the Management Board of Henkel AG & Co. KGaA today approved a new outlook for fiscal 2020.
As a result of the dynamic spread of the COVID-19 pandemic and the high level of uncertainty about the impact and development of the global economy in the course of the year, the Management Board of Henkel AG & Co. KGaA had decided on April 7, 2020, to no longer maintain the forecast for fiscal 2020 that was given in the Annual Report 2019.
Due to the effects of the COVID-19 pandemic, current forecasts anticipate a strongly negative development of the global economy in 2020. The new outlook is based on the assumption that the industrial demand and business activity in areas of importance to Henkel in the fourth quarter will be below prior year but will not deteriorate significantly. The decisive factor in this context will be the future development of global infection rates and the development of pandemic-related restrictions. In this context, Henkel assumes that there will be no far-reaching lockdowns in the core regions essential for the company in the fourth quarter of 2020.
Taking these developments into account, Henkel expects organic sales growth of between -1.0 and -2.0 percent at Group level in fiscal 2020.
For the Adhesive Technologies business unit, which is likely to be significantly impacted by a sharp decline in general industrial demand and, in particular, in the automotive industry, Henkel anticipates organic sales growth in the range between -5.5 and -6.5 percent. For the Beauty Care business unit, Henkel currently anticipates organic sales growth in the range between -2.0 and -3.0 percent. A significant decline in the Hair Salon business due to the pandemic, particularly in the first half, will have an impact on this business unit in the full fiscal year. For Laundry & Home Care, Henkel expects organic sales growth in the range between +4.5 and +5.5 percent.
At Group level, Henkel expects to achieve an adjusted return on sales (EBIT margin) in the range between 13.0 and 13.5 percent. For the Adhesive Technologies business unit, Henkel expects an EBIT margin in the range between 14.5 and 15.0 percent, for Beauty Care in the range between 10.0 and 10.5 percent and for Laundry & Home Care in the range between 15.0 and 15.5 percent.
The decline in sales in the industrial and Hair Salon businesses due to the pandemic will have a negative impact on the adjusted EBIT margin. As announced at the beginning of the year, Henkel is also increasing investments in marketing and advertising, as well as in digitalization and IT.
Adjusted earnings per preferred share (EPS) at constant exchange rates are expected to decline in the range between -18 and -22 percent.
Preliminary sales development in the third quarter Based on preliminary figures, Henkel delivered organic sales growth, which excludes the impact of currency effects and acquisitions/divestments, of +3.9 percent.
Based on preliminary figures, the Adhesive Technologies business unit achieved positive organic sales growth of +1.3 percent in the third quarter. Compared to the second quarter, a recovery in demand was recorded across all business areas.
According to the preliminary figures, Beauty Care delivered very strong organic sales growth of +4.3 percent. While the development of the Hair Salon business was below the level of the prior-year quarter despite a recovery, the retail business achieved significant organic sales growth in the third quarter.
Thanks to continued strong demand for Laundry & Home Care products as well as catch-up effects from the second quarter, preliminary figures for this business unit also indicate significant organic sales growth in the third quarter of +7.7 percent.
Henkel will publish its statement for the third quarter 2020 on November 10, 2020. Henkel AG & Co. KGaA
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Company: Henkel AG & Co. KGaA Contact: Heinz NicolasDepartment: CLC / Telephone: +49 211 797 4516Email: firstname.lastname@example.org Address: 40191 D?sseldorf, Deutschland Henkel Preferred Share: ISIN DE0006048432 // WKN 604843 Henkel Ordinary Share: ISIN DE0006048408 // WKN 604840 Listing: Regulated market (Prime Standard), all eight German Stock Exchanges ?
For further financial instruments see www.henkel.com/irDisclaimer This information contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, etc. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.
This information includes - in the applicable financial reporting framework not clearly defined - supplement financials measures that are or may be alternative performance measures (non-GAAP-measures). These supplement financials measures should not be viewed in isolation or as alternatives to measures of Henkel's net assets and financial positions or results of operations as presented in accordance with applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Explanations of financial measures used can be found in the Annual Report of Henkel (available at https://www.henkel.com/investors-and-analysts).
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09-Oct-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Henkel AG & Co. KGaA Henkel Str. 67 40191 D?sseldorf
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