GERMANY: Henkel Raises FY Forecast After Strong Q2

Henkel has raised its forecast for profit margin for the full year, after strong second-quarter results pushed its share price to a record high.

For the quarter, adjusted operating profit was up 6.6% to €819m, while adjusted margin was up 120bps to 17.6%.  Overall sales grew by 3.2% to €4.65bn, helped by strong demand in emerging markets, particularly Latin America and Eastern Europe. The group was also helped by lower costs and improved distribution efficiencies.

Henkel said it now expects full-year operating profit margin to be more than 16.5%, from its previous forecast of recording “approximately” that figure. It reiterated that it expects sales to grow by 2%-4% on an organic basis.