Persil-maker Henkel raises organic growth guidance for 2026
Henkel's Upgraded Sales Outlook and Performance Highlights
By Bartosz Dabrowski
Strong First-Half Organic Growth
Aug 6 (Reuters) - German consumer goods and adhesives maker Henkel on Thursday raised its full-year sales outlook following strong first-half organic growth, driven by positive pricing and volumes across both its business units and robust demand in Adhesive Technologies in particular.
Consumer Brands and Adhesive Technologies Performance
Henkel, whose numerous consumer brands include Persil, Bref, Schwarzkopf and Syoss, raised its organic sales growth outlook range to between 1.5% and 3.5%, having previously guided for a 1% to 3% rise in 2026.
Its shares rose 1.9% by 0608 GMT in early Frankfurt trade.
Sales and Analyst Estimates
Henkel reported an organic 3.2% rise in its half-year sales, beating analysts' average estimate of 2.5% in a Vara Research poll.
In non-organic terms, sales in the January to June period fell to €10.35 billion ($11.95 billion) from €10.40 billion a year ago, but exceeded the consensus of €10.31 billion.
Business Unit Breakdown
The company said its adhesive technologies unit posted organic sales growth of 4.5% in the same period, driven by higher prices and better volumes, while the consumer brands unit saw 1.7% growth.
Market Trends and Earnings Outlook
While demand for household and personal care products remains subdued in many markets, investors are looking for signs that improving trends in Henkel's higher-margin adhesives business can continue to support earnings growth.
Adjusted Earnings and Guidance
Henkel's adjusted half-year earnings before interest and taxes came in at €1.62 billion, rising slightly from a year ago and beating analysts' expectations of €1.59 billion.
It reaffirmed the full-year guidance for an adjusted EBIT margin of 14.5% to 16%.
Currency Exchange Rate
($1 = 0.8661 euros)
(Reporting by Bartosz Dabrowski in Gdansk, editing by Milla Nissi-Prussak)