German chemicals and consumer goods giant Henkel AG on Friday raised its sales and earnings outlook for 2024 after a strong first-quarter performance.
Adjusted earnings per preferred share are expected to increase in the range of 15% to 25% at constant exchange rates, up the initial March estimate of 5% to 20%.
Organic sales growth is now expected between 2.5% and 4.5% above the previous range of 2% to 4%. Expected growth in the adhesive technologies segment has been reaffirmed between 2% and 4%.
The guidance for consumer brands has increased to between 3% and 5%, from between 2% and 4%. Adjusted return on sales is expected between 13% and 14%, up from 12% to 13.5%.
Based on preliminary figures, Henkel's group sales in the first quarter stood at around €5.3 billion ($5.7 billion), implying organic sales growth of 3%.
While the adhesive technologies business recorded sales of around €2.7 billion and positive organic sales growth of 1.3%, the consumer brands segment achieved sales of €2.6 billion and organic sales growth of 5.2%.
The company will report further details on sales development in the first quarter on May 8.