Breaking News

Beware of Submerging Markets says Henkel

August 8, 2013

Growth slows in emerging economies.

Henkel has joined other multinational household and personal products companies in taking a more cautious view of growth in emerging markets as it reported second quarter results in line with expectations.

The maker of Persil, Prill, Purex and other popular brands today revised its growth forecast for emerging market economies downwards slightly and now expected consumer spending in those countries to rise by 4% in 2013, compared with a previous forecast for 5%.

Still, Henkel maintained its group targets for 2013. It expects adjusted earnings per share to rise 10% this year and sales to rise between 3-5%. Last month, Unilever last month spoke of slowing growth in emerging markets, and Beiersdorf on Wednesday flagged concerns among consumer goods companies.

Henkel has around 4 billion euros ($5.3 billion) available for acquisitions and recently said it was looking at around 80 different targets. Analysts expect Henkel will announce a deal this year, possibly in the US. The group did no provide any update on acquisitions.

Henkel's last major purchase was that of National Starch in 2008 for 3.7 billion euros to expand its adhesives division. The group reported second-quarter sales of 4.29 billion euros, up 4% adjusted for currency effects and driven by emerging markets, and an 8% gain in operating profit to 660 million euros.

 

blog comments powered by Disqus
  • Henkel Grabs the Sun

    Henkel Grabs the Sun

    Ian Bell, Euromonitor International||June 24, 2016
    Euromonitor's Ian Bell on the impact the purchase will have on the US detergent industry.

  • Problems for Preservatives

    Problems for Preservatives

    June 20, 2016
    David Steinberg details the issues surrounding this critical ingredient category.

  • Exploring Green in Vegas

    Exploring Green in Vegas

    Christine Esposito, Associate Editor||June 6, 2016
    Cosmoprof North America sets the stage for brands dedicated to the growing and evolving eco-friendly beauty space.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.