Henkel runs in Frankfurt, solid quarterly earnings and confirmation of 2026 guidance

(Il Sole 24 Ore Radiocor) - Henkel is shining on the Frankfurt Stock Exchange thanks to better-than-expected quarterly sales and the confirmation of estimates for 2026, despite the uncertain environment. The German consumer goods and adhesives manufacturer's stock gained more than 4.4 per cent, which is worth the top spot among the DAX 40 index components and also among the best of the Stoxx Europe. In the January-March period Henkel achieved sales of EUR 4.95 billion, down 5.5% at reported level, but with an organic increase of 1.7% above expectations (+1.1%).

The Adhesive Technologies division recorded an accounting decline of 3.2% but organic growth of 1.7% to EUR 2.6 billion, driven by the mobility and electronics segments, while the Consumer Brands division recorded -8% and +1.8% to EUR 2.3 billion respectively, supported by the hair care sector (Schwarzkopf brand). Geographically, strong performances in Asia Pacific (+10.9% organically) and North America (+0.9%) more than offset the slowdown observed in Europe (-0.9%).

"In a difficult environment, we recorded good organic sales growth in the first quarter, driven by both business units. We achieved price and volume growth in both the adhesive technology and consumer brand businesses,' CEO Carsten Knobel was quoted as saying in a statement. "At the same time, we are consistently pursuing our strategic agenda and investing in the expansion of our business. This also includesthe recently announced acquisitions, which together represent almost EUR 1.6 billion in additional sales. In the meantime, we have already successfully concluded three of five transactions. The outlook for 2026 remains unchanged. We continue to believe Henkel is on track for sustainable and profitable growth,' the CEO added.

Forecasts for the financial year 2026 point to organic sales growth of 1 to 3 per cent, an adjusted profit margin on sales of between 14.5 and 16 per cent, and adjusted earnings per preferred share up by 5 to 10 per cent at constant exchange rates. The group also pointed out that the acquisitions and divestmentsare expected to have a low single-digit positive impact on nominal sales growth, whereas it had previously forecast a neutral to slightly declining effect. At the same time, material prices are expected to increase by a high single digit whereas previously the estimates pointed to a low single digit increase.

"Henkel posted solid growth in the first quarter as adhesives technologies and consumer brands both exceeded expectations," analysts at RBC Capital Markets commented in a note, noting that the German group reiterated its 2026 growth forecasts and said acquisitions and divestments should now have a positive impact. Barclays reiterated its neutral rating on the stock with an unchanged target price of EUR 70.