Henkel declines after disappointing outlook

(AOF) – On the Frankfurt Stock Exchange, Henkel fell by 4.20% to 67.44 euros after having signed an annual performance generally in line with expectations, according to UBS, which remains neutral on the file. The German consumer goods manufacturer (Le Chat, X-TRA or Loctite) saw its attributable net profit increase to 1.32 billion euros in 2023, compared to 1.26 billion euros the previous year, this which allowed it to maintain a stable dividend, at 1.85 euros per share. Ebit’s margin increased by 150 basis points to 11.9%.

Turnover showed organic growth of 4.2% to 21.5 billion euros. On a reported basis, however, turnover fell by 3.9%.

The two business units, Adhesives Technologies and Consumer Products Brands, recorded sales of €10.79 billion and €10.57 billion, respectively, reflecting organic sales growth of 3.2% and 6. 1%, respectively.

Free cash flow reached a new record of 2.60 billion euros, a significant increase compared to 653 million euros in 2022.

Organic growth between 2% and 4% for 2024

Consequently, the net financial position improved significantly to reach €12 million compared to -€1.2 billion as of December 31, 2022.

Regarding the 2024 financial year, the group anticipates lower organic sales growth relative to 2023, between 2% and 4%, due in particular to the potential negative impact of the sale of its activities in Russia. Earnings per preferred share are expected to grow by 5% to 20% at constant exchange rates. The Ebit margin is expected to improve between 12% and 13.5%.

“We are on the right track and pursuing the right strategy. We can look forward to 2024 and the following years with great confidence,” said Carsten Knobel, Chairman of the Board of Directors.

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