(AOF) – The consumer goods giant (Loctite, Schwarzkopf, Mir, etc.) Henkel raised its 2022 organic growth forecast on the occasion of the presentation of better than expected half-year results. The German firm is now aiming for organic growth of between 4.5% and 6.5% against 3.5% to 5.5% previously. It also confirmed its adjusted operating margin (Ebit) targets of between 9% and 11% and earnings per share, at constant exchange rates, down 15% to 35%.
In the first part of the year, earnings per share fell 20.8% to 1.95 euros. Adjusted operating profit (Ebit) fell by 18.5% to 1.17 billion euros, showing a margin of 10.7%, down 370 basis points. Revenues reached 10.9 billion euros, up 9.9%, including +8.9% organic growth.
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The French beauty and hygiene market continues to decline
In recent years, the French have simplified their beauty routines, which has resulted in lower spending. According to Kantar, the weight of personal care and beauty in spending on consumer goods has steadily decreased over the past five years, dropping below 10%. Thus in 2021, health and beauty expenditure accounted for 8.5%. For the NielsenIQ panelist, the development of telework penalizes the sector because teleworkers reduce their health and beauty purchases twice as quickly as the average French person. This trend is likely to continue in 2022. To this is added another negative factor: with inflation and the loss of purchasing power, the French will certainly carry out arbitrations in their spending, which could be at the expense of the hygiene-beauty.