DGAP-Adhoc: Henkel AG & Co. KGaA: Outlook 2020

Düsseldorf, 2019-12-12T17:40+01:00 (MEZ)
Outlook 2020

At its meeting today, the Management Board of Henkel AG & Co. KGaA approved the planning as well as the outlook for fiscal 2020, which is below the current market expectations for 2020.

For the business units Beauty Care and Laundry & Home Care, the company expects good organic sales growth, while growth in the Adhesive Technologies business unit will presumably be impacted by the uncertainty in industrial demand. Overall, Henkel expects on Group level organic sales growth of 0 to 2 percent. For the current fiscal year 2019, Henkel from today's perspective expects the organic sales development to be approximately stable.

In view of an uncertain industrial environment and investments in marketing and advertising as well as digitalization and IT expected to increase versus 2019 in order to sustainably strengthen the business in the long-term, Henkel expects earnings to be negatively impacted in the fiscal year 2020.

The adjusted EBIT margin for 2020 is expected to reach around 15 percent compared to an expected EBIT margin of around 16.2 percent in 2019.

From today's perspective, Henkel expects adjusted earnings per preferred share (EPS) in 2020 to decrease by a mid to high single-digit percentage at constant exchange rates compared to an expected figure of around 5.45 euros in fiscal 2019.

Henkel AG & Co. KGaA

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This information contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, etc. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.