Henkel sees sales growth of 1-3% in 2026

Henkel sees slower start to 2026 on weak customer sentiment, Middle East uncertainty

Henkel's Financial Outlook and Market Challenges

By Bartosz Dabrowski

March 11 (Reuters) - German consumer goods and adhesives maker Henkel said on Wednesday it expects a slower start to 2026 due to persistently weak consumer sentiment and uncertainties linked to the war in Iran.

Stock Market Reaction

Shares in Henkel were down 4.27% at 0953 GMT after it said it expects a softer start to 2026 with only a moderate increase in industrial demand relevant to the group's consumer goods activities.

CEO's Perspective

"We are still confronted with quite weak consumer sentiment in the majorities of the world, which is for sure Europe and North America. And ... the Middle East conflict today is not helpful on that," CEO Carsten Knobel told analysts in a conference call.

Market Conditions and Regional Impact

Europe's consumer goods sector remains uneven, with resilient demand in home care products contrasted by weak discretionary spending, while the war in Iran has driven up oil and gas prices and disrupted shipping through the Strait of Hormuz, raising costs across the industry.

Sales Forecasts

The company expects its organic sales to grow between 1.0% and 3.0% this year, compared to a 0.9% rise to 20.5 billion euros ($23.9 billion) in 2025.

Analyst Expectations

At 2.0%, the mid-point of the outlook is slightly below the 2.1% growth estimated by analysts polled by Vara Research. They had also forecast average 1.0% organic growth for 2025.

Growth Agenda and Dividends

The group said its growth agenda, including portfolio optimization of the consumer brands business completed in 2025 and recent acquisitions in both business units, positioned Henkel for continued growth.

Henkel proposed a dividend of 2.07 euros per preferred share, up 1.5% from a year earlier.

($1 = 0.8593 euros)

(Reporting by Bartosz Dabrowski in Gdansk; Editing by Matt Scuffham)