Company’s fiscal 2020 forecast withdrawn
1Q 2020 financial results will be released on May 11, 2020
(PRESS RELEASE) DÜSSELDORF, 7-Apr-2020 — /EuropaWire/ — Henkel AG & Co. KGaA has announced that its Management Board has decided on the withdrawal of its fiscal 2020 forecast which was published in the Annual Report 2019. The company has also said that the impact on business performance in 2020 due to COVID-19 is currently not predictable. Furthermore, as the dynamic development of the COVID-19 pandemic impacts the global economy, a reliable and realistic evaluation of the future business performance of Henkel is currently not possible.
Across all business units and functions, Henkel is responding to the crisis triggered by the COVID-19 pandemic with specific measures. Nevertheless, it is currently not possible to predict with sufficient reliability over what period and to what extent Henkel will face further impacts in fiscal 2020, and to what extent these can be offset by countermeasures.
As soon as it is possible to make a sufficiently reliable evaluation of the future business performance in 2020, Henkel will publish a corresponding forecast.
Carsten Knobel, Henkel CEO, commenting on the unprecedented challenges the world is facing:
“The world is going through a very challenging period. First and foremost, people and communities in almost every country are affected by the spread of the coronavirus. But also businesses and economies worldwide are facing major challenges. In this difficult situation, the health and safety of our employees, customers and business partners have highest priority for us. We have taken early action and measures to protect them while ensuring business continuity under these unprecedented conditions.”
“As the COVID-19 pandemic has worldwide reach and its further development is impossible to predict, we currently cannot make reliable projections for our business performance in 2020. But with our committed global team, their resilience and capabilities, as well as our strong balance sheet we are confident to master the crisis in the best way possible and to emerge stronger from this crisis,” Knobel added.
The development of Henkel in the first quarter of 2020 is already impacted by the effects of the COVID-19 pandemic. Based on preliminary results, Henkel expects overall organic sales growth for the Group of -0.9 percent in the first quarter of 2020.
For the Adhesive Technologies business unit, Henkel expects organic sales growth of -4.1 percent for the first quarter. In this business, demand declined particularly in the automotive industry. Thanks to strong demand for Laundry & Home Care products, Henkel expects that the business unit has achieved organic sales growth of 5.5 percent in the first quarter. Beauty Care is expected to report a decline in organic sales of -3.9 percent. While the hair salon business was significantly impacted by the closure of hairdressing stores ordered by many authorities, the organic sales growth of the retail business compared to the previous year was stable.
Henkel will publish its financial results for the first quarter of 2020 on May 11, 2020.
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