Henkel Projects Slow Start to 2025, Shares Drop 7.6%

Germany’s Henkel issued a cautious 2025 sales outlook, expecting organic growth of 1.5% to 3.5%, below analysts’ 3% estimate. The company cited a tough industrial environment and weak consumer demand, particularly in North America, which accounts for 28% of its sales.

Shares fell 7.6% following the announcement. In 2024, Henkel reported 2.6% organic sales growth, missing forecasts of 3.2%. The company expects material costs to rise slightly in 2025 and projects an operating margin of 14% to 15.5%. Henkel also proposed a 10.3% higher dividend and announced a €1 billion share buyback.

Henkel CEO Highlights Performance

Henkel CEO Carsten Knobel acknowledged the economic uncertainties of 2024 but emphasized the company’s progress and strong financial results. He noted that Henkel achieved solid organic sales growth and significantly improved profitability, with a 2.4 percentage-point rise in operating margin and a 25% increase in earnings per preferred share. Knobel credited the success to enhanced product value, savings from the Consumer Brands integration, and portfolio optimization measures.

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