Material costs, Ukraine war lead Henkel to expect lower profits

div classBodysc17zpet90 cdBBJodivpDUESSELDORF, Germany Reuters – German consumer goods group Henkel said on Friday it was lowering its profit forecasts for 2022 in light of strongerthanexpected increases in materials costs and the consequences of the Russian invasion of Ukraine.p

pHowever, the maker of Persil washing detergents and Pritt glue is more optimistic than before about sales growth thanks to rising prices, especially for its adhesives.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pHenkel brought in total sales of around 5.3 billion euros 5.59 billion in the first quarter, it said on Friday. This represented a 7.1 increase in organic sales, mainly due to flourishing business in the adhesives division. p

pFor the full year, Henkel now expects organic sales growth of 3.5 to 5.5. Previously the range had been from 2 to 4.p

pProfits, however, will be impacted by rising material and logistics costs, as well as the groups withdrawal from Russia and Belarus.p

pHenkel now expects a lower adjusted return on sales, between 9 and 11, compared to between 11.5 and 13.5 previously. Adjusted earnings per preferred share EPS are now expected to see a decline in the range from 35 to 15.p

p1 0.9480 eurosp