Persil-owner Henkel gives soft growth guidance, as weak North America weighs

Reuters
03-11
UPDATE 2-Persil-owner Henkel gives soft growth guidance, as weak North America weighs

Adds share reaction in paragraph 2, context and details from statement throughout

By Matthias Inverardi, Elizaveta Gladun and Linda Pasquini

March 11 (Reuters) - Germany's Henkel HNKG.DE gave a soft guidance for 2025 organic sales growth on Tuesday, projecting a slower start to the year due to tough industrial environment and muted consumer sentiment especially in North America.

The Persil detergent and Loctite glue maker's shares fell 7.6% by 0817 GMT, among the worst performers on Europe's benchmark STOXX 600 index .STOXX.

Henkel, a rival to market leaders L'Oreal OREP.PA and Procter & Gamble PG.N, has been grappling with subdued consumer spending on personal and home care products and weakness in industrial sectors such as automotive and electronics.

North America made up 28% of its global sales last year.

The Schwarzkopf owner said it expected organic sales to grow between 1.5% and 3.5% in 2025, factoring in a moderate rise in both industrial and consumer demand across key areas of its consumer goods business.

After a slow start, the growth should accelerate in the course of the year and lead to a stronger second half, it said.

At 2.5%, the mid-point of the outlook is below the 3% growth estimated by analysts polled by Vara Research.

For 2024, the consumer goods and adhesives maker reported 2.6% organic sales growth to 21.6 billion euros ($23.4 billion), missing analysts' average forecast of 3.2%.

It expects prices for direct materials to rise in a low to mid-single-digit percentage in 2025, while the currency exchange effect will be neutral or negative in low single digits, it said.

It forecast an annual operating margin of 14% to 15.5%, compared to 14.3% last year.

Henkel proposed a dividend of 2.04 euros per preferred share, up 10.3% from a year earlier, and said in a separate statement that it would repurchase shares for up to 1 billion euros.

($1 = 0.9223 euros)

(Reporting by Matthias Inverardi, Elizaveta Gladun and Linda Pasquini; editing by Milla Nissi)

((elizaveta.gladun@thomsonreuters.com))

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