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
  • Enter Éclair

    Enter Éclair

    Christine Esposito, Associate Editor||July 5, 2016
    A new naturals line rolls out in Rite Aid stores nationwide.

  • What

    What's Next for the UK?

    Sarah Boumphrey, Euromonitor International||June 27, 2016
    Euromonitor weighs in on how Brexit could impact consumer product companies.

  • The Future of Innovation

    The Future of Innovation

    Nancy Jeffries, Contributing Editor||June 27, 2016
    Fashion Institute of Technology graduate students tackle a far-reaching topic for their Capstone project.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.