Persil-owner Henkel takes hit from weak US consumer sentiment
May 8 (Reuters) - Germany's Henkel (HNKG.DE), opens new tab pointed to weaker consumer sentiment in North America as it reported a 1.0% fall in first-quarter sales on Thursday, below market expectations.
Henkel has been grappling with weakness in industrial sectors such as automotive and electronics, alongside sluggish demand for personal and home care products amid subdued consumer spending.
First-quarter sales in North America fell 3.4% organically to 1.43 billion euros. The region made up 28% of its sales last year. In March, Henkel said U.S. government decisions were hurting the North American market disproportionately.
"The situation triggered by the tariff debate ... is naturally one that introduces significant volatility," CEO Carsten Knobel said, adding that consumer sentiment in the U.S. is problematic.
Shares were trading down 0.44% at 1122 GMT, recovering losses after falling as much as 2.6% earlier.
The consumer goods and adhesives maker's sales in the three months to March 31 fell to 5.24 billion euros ($5.92 billion) from 5.32 billion a year earlier, below analysts' average estimate of 5.32 billion euros according to a Vara Research poll, opens new tab.
Sales in its adhesive technologies business, which also produces industrial adhesives for automotive, electronics and construction, grew 1.1% to 2.72 billion euros, despite a decline in the automotive segment.
However, sales in its consumer brands business, which makes Persil detergent, Schwarzkopf hair care and Dial soap, fell 3.5% to 2.48 billion euros, hit by a downturn in the laundry care segment.
Henkel confirmed its guidance for 2025, saying that to achieve the goal, it would focus on further optimising its portfolio of products in the consumer brands unit.
Henkel has sold or discontinued brands and activities for total sales of slightly over 1 billion euros since the beginning of 2022, recently selling its retailer brands business in North America to an affiliate of First Quality Enterprises, LLC.
($1 = 0.8844 euros)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
34 minutes ago
- Reuters
English court bars jailed Russian tycoon from appealing in Transneft case
MOSCOW, June 5 (Reuters) - The English Court of Appeal has refused jailed Russian tycoon Ziyavudin Magomedov permission to appeal against a decision that threw out his $14 billion lawsuit against Russian oil pipeline monopoly Transneft and other firms, the company said. Magomedov sued the company and several others at London's High Court, alleging his 2018 arrest on embezzlement charges prompted a Russian state-supported scheme to strip him of his holdings in valuable port operators. In January, Transneft, as well as U.S. private equity firm TPG (TPG.O), opens new tab and other companies, won their bid to block Magomedov's London lawsuit. Transneft said late on Wednesday that the English Court of Appeal denied Magomedov permission to appeal the ruling. "It is clear from the English process that there are massive losses which Mr Magomedov has suffered as a result of wrongdoing against him. He will continue to seek justice and a fair outcome wherever he can," a spokesperson for Magomedov said. Magomedov once controlled an empire ranging from port logistics to oil and gas through his Summa Group conglomerate, which he founded with his brother Magomed. But the brothers were arrested on embezzlement and organised crime charges in one of the most high-profile prosecutions of its kind in years. Magomedov was sentenced to 19 years in jail in 2022. He says the charges against him are unfounded and unsuccessfully appealed against his conviction.
Daily Mail
35 minutes ago
- Daily Mail
Dr Martens returns to growth as bootmaker pledges to stamp out costs
Dr Martens shares soared more than 20 per cent on Thursday after the iconic bootmaker revealed it expects to return to profit this year. The retailer, which has struggled for momentum over the last two years, outlined plans to cut costs and scale back discounting in its key markets, including the US and Europe. Dr Martens revealed an annual profit slump as sales came under pressure and it cautioned over ongoing falling revenues in Britain. The footwear group reported pre-tax profits of £8.8million for the year to 30 March, down from £93million the previous year, after seeing sales fall 10 per cent. On an underlying basis, the group's pre-tax profits fell sharply to £34.1million from £97.2million. The company said sales to consumers in the US returned to growth in the second half of the year and had continued to increase, but revealed revenues had remained lower since the year-end 'due to a challenging market'. It added that unfavourable foreign exchange rates would see it take a hit to group sales and profits of around £18million and £3million respectively this year. However, Dr Martens said it expects its underlying profit to rise 'significantly' over the financial year ahead, with analysts expecting a jump to between £54million and £74million. Dr Martens shares rose 21.77 per cent or 13.05p to 73.00p on Thursday, having fallen over 13 per cent in the last year. On curbing discounts, the group said: 'As we look forward into FY26, we will reduce discounting in Americas and EMEA, across both our own ecommerce channel and through wholesale, with the aim of driving full price sales.' The group flagged uncertainty over the impact of higher tariffs, but said it was holding off from price rises for the the remainder of 2025. Its stock is already in the US market for the spring and summer season and either there or on its way for the autumn and winter months. Dr Martens said: 'We do however recognise that there is continued macroeconomic uncertainty and the full outcome of tariffs is still unknown, and we will monitor this closely through the year and take action as appropriate.' The Northamptonshire-based company outlined new plans for growth alongside its results, with aims to attract new shoppers and hold off from discounts in EMEA and the Americas. Annual figures showed sales sales fell 11.4 per cent over the year, although retail lifted 1 per cent in the final six months of the period. In the Europe, Middle East and Africa (EMEA) region, sales fell 11 per cent, with direct-to-consumer difficulty amid a highly promotional market, particularly in Britain, the group said. The company, whose yellow-stitched boots have been a retro mainstay for decades, has been in the doldrums in recent years, with declining revenues exacerbated by the cost-of-living crisis. It listed on the London Stock Exchange in 2021, and has since issued a slew of profit warnings and replaced its chief executive. Many of Dr Martens' recent problems have come from steep declines in sales in the US, but new chief executive Ije Nwokorie said the group had stabilised in the past year. He said: 'Our single focus in 2024-25 was to bring stability back to Dr Martens. 'We have achieved this by returning our direct-to-consumer channel in the Americas back to growth, resetting our marketing approach to focus relentlessly on our products, delivering cost savings and significantly strengthening our balance sheet.' Nwokorie, previously the firm's head of marketing before taking on the top job from Kenny Wilson on 6 January, said: 'I am laser-focused on day-to-day execution, managing costs and maintaining our operational discipline while we navigate the current macroeconomic uncertainties.' Russ Mould, investment director at AJ Bell, said: 'Dr Martens is on the front foot with a strategy that seeks to kick out the troubles of old and return the business to profitable growth. 'This should shift the market's focus from earlier problems in the US and a sharp drop in earnings to a business intent on regaining its power. 'Having a plan is a good start, but the proof will be in the execution. It has laid out ambitions to get back on top. Turning those dreams into reality might not be easy. 'Fundamentally, it's all down to marketing and product innovation. Dr Martens needs to convince the consumer they need its products – get that right, and it could reclaim its crown in the footwear market. 'The brand still has considerable strength, the business just needs to be more creative at the front end and agile at the back end.'
Daily Mail
41 minutes ago
- Daily Mail
Posh tonic maker Fever-Tree reveals what US drinkers are buying in droves
Fevertree has shrugged off trade tariff concerns after striking a deal with a major partner, as the UK group continues to grow sales in the US market. In a trading update ahead of its annual general meeting on Thursday, the company said it was trading in line with forecasts, adding that it was making 'good progress' in the US following its partnership with Molson Coors. Fevertree noted strong momentum across the US, with brand performance described as 'well ahead of the competition'. The firm's ginger beer and ginger ale are proving a hit with consumers in the US, which is now Fevertree's biggest market, a spokesperson told This is Money. Its Bloody Mary mixer and its espresso martini cocktail mixer are also making 'great gains' across the US, Fevertree said. The company said Trump's tariffs 'do not present a structural headwind' for the business, as 'over time, they will be materially mitigated by a combination of on-shored US production and the profit guarantee mechanism'. Fevertree said it would equally split the costs of the 10 per cent tariff to be imposed on British imports to the US with brewer Molson Coors. The British company, known for its premium cocktail mixers, counts the US as its largest market. Fevertree said the transition of its distribution to Molson Coors' network of distributors was 'underway'. It claimed both businesses 'remain highly aligned and excited about the significant growth opportunity ahead'. In January, Molson Coors took a stake in Fevertree, securing exclusive rights to distribute and market the firm's cocktail mixers and tonic waters in the US. The tonic and mixer maker forecast low single-digit revenue growth and an adjusted EBITDA margin of around 12 per cent for its financial year. Fevertree said its performance across Britain remained strong, seeing it retain its 'number one position' and enjoying growth in alcoholic and non-alcoholic settings. As part of its £10 million share buyback announced earlier this year, Fevertree said it had returned around £42.5million to shareholders to date. The business said on Thursday: 'The group's capital allocation framework remains unchanged.' It added: 'We intend to retain sufficient cash for investment opportunities, primarily in operational expenditure, including increased marketing spend in growth regions. 'We are also vigilant regarding M&A opportunities that would further assist with the delivery of our strategy.' Fevertree also announced that Charles Gibb, its North America chief executive, would step down and be succeeded by Judd Hausner.
