Henkel has raised its 2024 outlook despite reporting reduced sales in Q3.
Sales fell by 9% to €5.4bn during the quarter, with the company being impacted by its exit from the Russian market in Q2 and the effects of negative foreign exchange rates.
Sales increased by 2.8%, however, which was driven by its increased raw material prices over the past year.
Despite the mixed results, the owner of Schwarzkopf, LIVE hair colour and Got2b has raised its financial outlook from 2.5% to be between 3.5 to 4.5%.
“Despite a persistently challenging market environment, we successfully sustained our growth momentum in the third quarter, with both business units contributing,” said Henkel CEO Carsten Knobel.
Europe, North America and Latin America were the strongest performing markets, but sales in the Asia-Pacific region were more subdued due to China’s recovering economy.
Henkel’s Hair business area also recorded significant organic sales growth of 8.9% in the third quarter.
This bolstered the business’ Consumer division, which achieved double-digit growth as a result of increased Hair Styling and Hair Care sales.
The German consumer goods company’s Professional arm also recorded strong sales growth during Q3.
“In both business units, volume development clearly improved in the third quarter compared to the previous quarter – which confirms our expectation as stated when publishing our results for the first half year,” Knobel added.
“For the quarter ahead, we expect a further sequential improvement.”
