Tensions in Russia have hit Henkel. According to CEO Kasper Rorsted, costs from marketing to travel are under review
Tensions in Russia have hit Henkel. According to Henkel’s CEO Kasper Rorsted in an interview with German weekly, Wirtschafts Woche, costs from marketing to travel are under review.
However, the spending review is not thought to extend to jobs or investment spending. In August, Henkel admitted a fourth quarterly sales dip.
Russian sales may be worth more than €1bn to the firm, though the sting of sanctions means that sales are under considerable pressure. Several personal care players have invested deeply in the region.
Before going to press, the Russian rouble was trading at 40:1 to the dollar – its lowest level ever – hitting the profit advantage of sourcing from local Russian factories and suppliers.
The IMF has slashed its 2015 growth forecast for Russia to 0.5%, and Russian inflation – now more than 8% – is making things increasingly difficult for consumers.