Clouded economic outlook makes planning tough, says Henkel chief

(Photo by INA FASSBENDER/AFP via Getty Images)

Chief Executive of Henkel, maker of Schwarzkopf and many other beauty and hair care brands, has highlighted that the clouded economic outlook is making it impossible for the business to plan with any real certainty.

“We live in a time when it is impossible to reliably plan what will happen in the coming weeks,” Carsten Knobel said.

“We are still assuming cost increases in the mid-20 percent range, which has been consolidated at this level over the past months,” he added. “But it is still too early to say how things will go in 2023.”

Last month, the owner of the Schwarzkopf haircare range and several well-known cleaning brands raised its 2022 outlook for organic sales based on strong sales growth in its adhesives unit.

Making the announcement, Knobel said that the group is working to pare down the recent spike in raw materials, energy costs, logistics, and income. The company left its expectation for adjusted earnings before interest and tax margin unchanged at 9 per cent to 11 per cent, adding that adjusted earnings per share would also fall between 35 per cent and 15 per cent.

Founded in 1876, Henkel is a German multinational chemical and consumer goods company. Headquartered in Düsseldorf, its business is organised into three globally operating business units- Laundry & Home Care, Adhesive Technologies, and Beauty Care. It is mainly known for brands such as Loctite, Persil, and Purex.