German chemical and consumer goods major Henkel AG & Co. KGaA (HENOY.PK,HENKY.PK) reported Thursday lower sales in its first quarter, while organic sales increased with growth in both units. Further, the firm maintained fiscal 2026 outlook.
On the XETRA in Germany, Henkel shares were gaining around 4.3 percent, trading at 62.45 euros.
In the first quarter, Henkel generated Group sales of 4.95 billion euros, down 5.5 percent from prior-year quarter's 5.24 billion euros.
Adhesive Technologies sales fell 3.2 percent year-over-year to 2.63 billion euros, and Consumer Brands sales dropped 8 percent to 2.29 billion euros.
Organically, group sales increased 1.7 percent. The growth was driven by 1.7 percent rise in Adhesive Technologies and 1.8 percent rise in Consumer Brands, benefited by positive volume and price developments.
The organic growth in Adhesive Technologies business unit was driven primarily by strong growth in the Mobility & Electronics business area. The good organic sales development in the Consumer Brands business unit was mainly due to a very strong increase in the Hair business area.
Organic sales in the Europe region dropped 3.4 percent and in Latin America fell 3.1 percent.
In the IMEA region, sales increased organically by 12.8 percent, and the growth was 0.9 percent in North America and 10.3 percent in Asia-Pacific region.
Looking ahead to fiscal 2026, Henkel continues to expect adjusted earnings per preferred share at constant exchange rates to increase in the low- to high-single-digit percentage range, and adjusted EBIT margin to be in the range of 14.5 to 16.0 percent.
The company still expects to generate organic sales growth of between 1.0 and 3.0 percent for 2026.
For the Adhesive Technologies business unit, organic sales growth in the range of 1.0 to 3.0 percent is expected. For Consumer Brands, organic sales is expected to increase 0.5 to 2.5 percent.
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