Henkel Reports 'Slow Start' To 2018 Due To Supply Chain Issues
Henkel, the maker of Loctite glue and Schwarzkopf hair products, has reported a 'slow start' in the first quarter of 2018, due to delivery difficulties in its consumer goods business in North America.
The company said that problems in its supply chain are due to a change in the transportation and logistics systems used by Henkel in the region.
“The causes of our delivery difficulties in the North American consumer goods businesses have been identified and are currently being solved," said Henkel CEO Hans van Bylen.
"We expect to return to usual service levels in the course of the second quarter. Our Adhesive Technologies business as well as our Hair Professional business are not affected and show a very good development.”
Henkel says that, based on current forecasts, the group's Laundry & Home Care and Beauty Care business units will end the first quarter with negative organic sales growth, due to the difficulties in North America.
However, overall organic sales growth is expected to be slightly positive in this period. The group is set to publish its first-quarter results on 9 May.
Despite the slow start to the year, Henkel has confirmed its full-year outlook for 2018. The company says that organic growth should still be in the range of 2-4%, while EBIT is expected to increase to more than 17.5%.
Henkel posted record sales last year, with revenue increasing by 7% to €20.029 billion.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.