Henkel Expects Pandemic To Leave Its Mark On Fourth Quarter
Consumer goods group Henkel said it still expects the coronavirus pandemic to weigh on its results for the final three months of the year, as it reported organic sales growth of 3.9% for the third quarter.
"We assume that we will continue to feel the negative impacts of the pandemic in the fourth quarter," chief executive Carsten Knobel said in a statement, adding that he did not, however, expect to see further extensive lockdowns like those experienced in the second quarter.
Henkel reported third-quarter organic sales growth of 3.9% to €4.99 billion, helped by a recovery in its retail beauty care business and demand for laundry detergents and household cleaners.
"Henkel achieved a good business performance in the third quarter, with all three business units contributing," said Knobel. "This is evidence of our robust, diversified portfolio comprised of successful brands and innovative technologies for our customers in the industrial and consumer goods businesses.
"Furthermore, our additional investments in marketing, innovation and digitalisation are paying off. Plus, we significantly expanded our digital sales in the third quarter, increasing their total sales share to more than 15%."
Last week, Henkel confirmed that it plans to keep expanding its footprint in China.
According to Dr. Rajat Agarwal, president of Henkel Greater China, the company will be showcasing its latest products in the beauty, laundry and home care sectors with the aim to meet the growing demand for higher quality from Chinese consumers.
"One trend we see is a shift from more to better, so the Chinese consumers and the Chinese customers do not only want more products, but the focus is now increasingly for better products. So this place very well into what we bring into the market in terms of high quality products and investing in innovation in the Chinese market," he said.
Most enterprises have been faced with unprecedented challenges this year, especially due to the COVID-19 pandemic, but Agarwal said that thanks to its businesses in China, Henkel has not been much affected.