The consumer goods group wants to buy back shares for up to one billion euros.
(Photo: Reuters)
Dusseldorf The consumer goods giant Henkel pulls the ripcord in view of the sluggish development in the cosmetics business. Henkel wanted to merge the cosmetics and detergents business into one division “in order to strengthen the growth and margin profile of the consumer goods businesses in the long term,” the Düsseldorf-based group announced on Friday.
Henkel will soon also part with brands in the cosmetics sector: “The first measures in the beauty care portfolio will already be implemented in the course of 2022.” Henkel wants to “specify the costs for the conversion at a later date”.
Against the background of the restructuring, Henkel issued new medium to long-term goals. For organic sales growth, Henkel is now aiming for three to four percent – previously it was two to four percent. The adjusted EBIT margin should be around 16 percent.
In addition, Henkel is targeting growth in adjusted earnings per preferred share (EPS) in the mid to high single-digit percentage range. In addition, Henkel announced a share buyback with a volume of up to one billion euros.
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Last year, the manufacturer of Pritt, Persil and Schwarzkopf achieved sales of a good 20 billion euros. The adjusted return on sales was around 13.4 percent. For 2022, Henkel expects organic sales growth for the Group in the range of two to four percent. The adjusted return on sales is expected to be between 11.5 and 13.5 percent – well below the medium-term target.
More: Own online shops are rarely profitable – why the cosmetics giants still rely on them