Breaking News

Henkel Eyes Cuts After Q4 Slump

March 8, 2012

Cites higher raw material costs and challenging market conditions.

In an effort to boost profit margins, Henkel says it will embark on a campaign to cut costs and boost its profit margins after fourth-quarter results came in below expectations.
"Henkel intends to further adapt its structures to the constantly changing market conditions while maintaining its strict cost discipline," it said, citing a challenging economic environment and high raw material costs.
The group, whose brands include Persil detergent in most of Europe and Schwarzkopf hair products, confirmed its 2012 targets for adjusted EBIT margin of 14% and sales growth of between 3-5%.
The 2011 margin was 13.2%.
However, analysts are skeptical that Henkel will reach the 2012 margin target given the expected slowdown in the global economy, with the average forecast at 13.5%, according to Thomson Reuters I/B/E/S. Rival Unilever said 2012 will be a difficult year, while Procter & Gamble has announced thousands of job cuts in a bid to trim costs.
Henkel reported fourth-quarter sales of 3.8 billion euros ($49.9 billion) and adjusted earnings before interest and tax (EBIT) of 502 million, compared with expectations for sales of 3.9 billion euros and adjusted earnings of 516 million euros, in a Reuters poll.
It is due to give a longer-term strategy update at the end of this year, when it will reveal targets for the period beyond 2012.

  • Fit for Fitness

    Fit for Fitness

    Christine Esposito, Associate Editor||February 21, 2017
    Kinx Active is a new brand targeting women who want beauty products that can stand up to their fitness routines.

  • Cargo Says Aloha To Spring/Summer

    Cargo Says Aloha To Spring/Summer

    Christine Esposito, Associate Editor||February 13, 2017
    Cargo Cosmetics has rolled out its new Spring/Summer collection with Hawiianan singer Anuhea.

  • Cashing In on Coconuts

    Cashing In on Coconuts

    Melissa Meisel, Associate Editor||February 6, 2017
    Organic to Green is making waves for its new oils and eco-friendly packaging.

  • Trade Association Directory 2017

    February 2, 2017
    Contact details of trade associations that serve various segments of our industry and are mentioned frequently in Happi.

  • What the Halal  Is Going On?

    What the Halal Is Going On?

    Imogen Matthews , In-Cosmetics||February 2, 2017
    Demand for these beauty products is surging thanks to a fastgrowing Muslim population.

  • Relief for Sensitive Scalps

    Relief for Sensitive Scalps

    Guadalupe Pellon and Annette Mehling , BASF||February 2, 2017
    BASF researchers detail the attributes of the company’s highly effective hair care system focusing on scalp sensitivity.