Henkel FY24 Profit Climbs, Outlook Positive; But Stock Drops On View Of Slower Start

RTTNews | 225日前
Henkel FY24 Profit Climbs, Outlook Positive; But Stock Drops On View Of Slower Start

(RTTNews) - German chemical and consumer goods major Henkel AG & Co. KGaA reported Tuesday higher profit in fiscal 2024 amid slight growth in sales. The company also issued positive outlook for fiscal 2025, and announced a double-digit percentage increase in the dividend, and up to 1 billion euros share buyback.

Meanwhile, shares of Henkel were down around 10 percent in the German trading after the firm predicted a slower start to the year. However, it is also expected that organic sales growth will accelerate in the course of the year leading to a stronger second half of fiscal 2025 versus the first half.

According to the firm, the outlook reflects a currently challenging industrial environment and subdued market growth and consumer sentiment in some of its markets; especially in North America.

Henkel CEO Carsten Knobel said, "The results of the past year are a clear evidence that Henkel's transformation is progressing successfully and that, with our strategic agenda for purposeful growth, we are on the right path to best position the Company for the future. This is also reflected in the outlook for fiscal 2025, in which we expect further sales and earnings growth despite a business environment that remains challenging."

For the new year, the company anticipates adjusted earnings per preferred share to increase in a range from low to high single-digit percentages at constant exchange rates.

Adjusted return on sales or adjusted EBIT margin is expected in the range of 14.0 to 15.5 percent, compared to 14.3 percent last year.

Henkel expects organic sales growth to be between 1.5 and 3.5 percent in fiscal 2025. Organic growth of between 2.0 and 4.0 percent is expected for the Adhesive Technologies business unit and between 1.0 and 3.0 percent for Consumer Brands.

For the full year 2025, a further margin and thus profitability improvement versus the prior year is expected for both business units. The development in the first two months of fiscal 2025 shows that Henkel and both business units are well underway.

With regard to the prices for direct materials, Henkel expects an increase in the low to mid single-digit percentage range compared to the annual average of 2024.

Further, the Management Board, Supervisory Board and Shareholders' Committee will propose to the Annual General Meeting on April 28 a dividend increase of 10.3 percent compared to the previous year, amounting to 2.04 euros per preferred share and 2.02 euros per ordinary share.

Separately, Henkel announced that its Management Board has resolved to launch a share buyback program with a total value of up to 1 billion euros. In the program, Henkel preferred shares with a total value of up to 800 million euros and ordinary shares with a total value of up to 200 million euros are to be repurchased.

Based on current stock market prices, the proposed buyback corresponds to a share of about 2.7 percent of the company's capital stock. The buyback program is expected to start during the month of April 2025 and to be carried out until March 31, 2026, at the latest.

In fiscal 2024, net income attributable to shareholders increased to 2.007 billion euros or 4.78 euros per share from 1.318 billion euros or 3.13 euros per share in the prior year.

Adjusted earnings per ordinary share were 5.34 euros, compared to 4.33 euros in the previous year. Adjusted earnings per preferred share increased 23.2 percent to 5.36 euros from previous year's 4.35 euros.

Adjusted operating profit or adjusted EBIT climbed 20.9 percent from last year to 3.09 billion euros, and adjusted EBIT margin was significantly higher at 14.3 percent, compared to 11.9 percent last year.

Net sales for the year were 21.586 billion euros, up 0.3 percent from 21.514 billion euros last year. Adjusted for the foreign exchange effects, sales growth was 2.1 percent.

Organic sales growth showed a good development at 2.6 percent, driven by both good price and positive volume development.

Sales in the Adhesive Technologies business unit totaled 10.97 billion euros in fiscal 2024, an increase of 1.7 percent year on year in nominal terms. Organically, sales increased by 2.4 percent.

Sales in the Consumer Brands business unit totaled 10.47 billion euros, 0.9 percent below the prior year. Organically, sales increased 3 percent.

In Germany, on the XETRA, Henkel shares were trading at 69.70 euros, down 10.4 percent.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.

read more
Henkel Recalls Tec Italy Totale Shampoo For Deadly Bacteria

Henkel Recalls Tec Italy Totale Shampoo For Deadly Bacteria

Mexico's Henkel Capital S.A. de C.V., affiliated to German chemical and consumer goods major Henkel AG & Co. KGaA, is recalling 1,068 units of its Tec Italy Shampoo Totale, according to the U.S. Food and Drug Administration. The recalled product has the potential to be contaminated with Klebsiella oxytoca, a dangerous bacteria.
RTTNews | 210日前
Henkel H1 Profit Surges, Confirms Outlook

Henkel H1 Profit Surges, Confirms Outlook

German chemical and consumer goods firm Henkel AG & Co. KGaA (HENOY.PK) on Tuesday maintained its recently revised fiscal 2024 outlook after reporting significantly higher profit in its first half, despite slightly lower sales. Organic sales, however, grew from last year, with growth in both business units. Henkel further expects mid- to long-term financial ambition already to be reached mid-term.
RTTNews | 436日前
Henkel FY22 Profit Down, Sees Slower Organic Sales Growth In FY23; Stock Down

Henkel FY22 Profit Down, Sees Slower Organic Sales Growth In FY23; Stock Down

Shares of Henkel AG & Co. KGaA were losing around 3 percent in the morning trading in Germany after the chemical and consumer goods firm reported Tuesday weak earnings in its fiscal 2022, despite increased sales. Further, the company maintained its dividend, and said it sees slower organic sales growth in fiscal 2023. For fiscal 2023, Henkel expects organic sales growth would be between 1 and 3...
RTTNews | 961日前
Bank Of Korea Holds Rate At 2.50%

Bank Of Korea Holds Rate At 2.50%

The Bank of Korea retained its interest rate on Thursday as inflation remained stable and economic growth continued to improve amid rising concerns over the heated property market. The Monetary Policy Board of the Bank of Korea decided to leave the Base Rate unchanged at 2.50 percent. The central bank had previously lowered the benchmark rate by a quarter-point each in May and February.
RTTNews | 10分前
European Economic News Preview: French Business Confidence Data Due

European Economic News Preview: French Business Confidence Data Due

Business sentiment from France and industrial trends survey from the UK are the top economic news due on Thursday. At 2.45 am ET, France's statistical office INSEE is scheduled to issue business confidence survey data is due. The manufacturing sentiment index is forecast to remain unchanged at 96 in October.
RTTNews | 1時43分前
European Shares Seen Lower With US-China Tensions In Focus

European Shares Seen Lower With US-China Tensions In Focus

European stocks are seen opening a tad lower on Thursday after reports emerged that the Trump administration is considering a plan to curb a dizzying array of software-powered exports to China, stoking fresh trade tensions.
RTTNews | 1時59分前
Yen Falls Against Majors

Yen Falls Against Majors

The Japanese yen weakened against other major currencies in the Asian session on Thursday.
RTTNews | 2時5分前
Sensex, Nifty Open On Buoyant Note Amid Trade Deal Hopes

Sensex, Nifty Open On Buoyant Note Amid Trade Deal Hopes

Indian shares opened on a buoyant note on Thursday after reports suggested that India and the United States are close to finalizing a long-awaited bilateral trade deal that could sharply lower tariffs on Indian exports to about 15-16 percent from the current average of 50 percent.
RTTNews | 3時7分前