(Reuters) -German consumer goods and adhesives maker Henkel cut its full-year revenue guidance on Thursday but raised the lower end of its adjusted return on sales forecast range, citing the benefits of cost savings.
The company said that the challenging macroeconomic environment was hampering organic growth. It expects its organic sales to grow between 1% and 2% this year, having previously forecast organic sales growth between 1.5% and 3.5%.
Henkel forecast adjusted earnings before interest and tax (EBIT) margin in the 14.5-15.5% range, up from 14.0-15.5% previously, helped by efficiency gains.
“We … are well on track to reach or even exceed the savings targeted in Consumer Brands,” CEO Carsten Knobel said.
Henkel merged its beauty care, laundry, and home care brands under one Consumer Brands division starting in 2022. The full cost savings from supply chain integration are expected to be achieved by the end of 2025.
Henkel said its updated outlook continues to take into account the currently foreseeable effects of the global tariff agreements.
European consumer goods companies are revamping their businesses to try to cushion the blow of rising costs, uncertainty over U.S. trade policy, and waning consumer confidence.
The group’s sales in the January-June period fell to 10.4 billion euros from 10.8 billion a year earlier, below the analysts’ average estimate of 10.5 billion euros in a Vara Research poll.
(Reporting by Bartosz Dabrowski in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)
