German Henkel AG presented its report for 2022 and announced that it expects to cease operations in Russia before the end of the first quarter of 2023. This was reported by Interfax with reference to the company’s report.
In 2022, the company increased sales by 11.6% to 22.397 billion euros. Organic growth (excluding FX and business purchases/sales) was 8.8%, driven by price increases across all divisions.
Earnings before taxes and interest (EBIT) fell to 1.81 billion euros compared to 2.213 billion euros a year earlier. Adjusted EBIT fell to 2.319 billion euros from 2.686 billion euros, due to a significant increase in raw materials and logistics costs.
Adhesive Technologies (Adhesives & Technologies) business unit posted organic sales growth of 13.2% last year, Laundry & Home Care (Cleaning & Detergents) up 6.3%. In the Beauty Care segment (cosmetics), a decrease of 0.5% was recorded.
Henkel has changed the business structure and will now consist of two divisions – Adhesive Technologies and Consumer Brands (consumer brands).
The company forecasts organic sales growth in the range of 1-3% in 2023 on the back of an expected slowdown in the global economic recovery. Commodity prices are forecast to continue to rise and interest rates are likely to be significantly higher than in previous years.
“Therefore, industrial demand is expected to be more subdued than in the previous year and that consumer demand growth in key areas of Henkel’s consumer goods business is expected to slow,” the statement said. “In addition, business activity in Russia is expected to cease by the end of the first quarter of 2023.”
Source: Rosbalt
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