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Henkel ups outlook for 2023 on back of strong prices

Published 11/09/2023, 01:38 AM
Updated 11/09/2023, 01:45 AM
© Reuters. A logo of consumer goods group Henkel is pictured before its annual news conference in Duesseldorf March 8, 2012.  REUTERS/Ina Fassbender/File Photo

(Reuters) -German consumer goods company Henkel on Thursday slightly raised its guidance for the year, saying strong pricing helped third-quarter growth.

The group raised the lower end of its guidance for full-year organic sales growth, now expecting an increase of 3.5% to 4.5% compared with a previous target of 2.5% to 4.5%.

It now sees an adjusted return on sales (EBIT margin) in a range of 11.5% to 12.5%, having previously targeted 11.0% to 12.5%.

Shares in Henkel rose 3.4% in pre-market trade at brokerage Lang & Schwarz.

Quarterly sales came in at 5.4 billion euros ($5.78 billion), up 2.8% organically, and in line with a 5.45 billion average estimate by analysts in a poll provided by the company.

© Reuters. A logo of consumer goods group Henkel is pictured before its annual news conference in Duesseldorf March 8, 2012.  REUTERS/Ina Fassbender/File Photo

"For the quarter ahead, we expect a further sequential improvement,” said CEO Carsten Knobel in a statement.

($1 = 0.9340 euros)

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