German consumer goods group Henkel raised its full-year outlook on Thursday after its adhesives business reported a strong first-quarter amid a faster-than-expected rebound in the automotive and electronics industries.
Henkel said it now expects 2021 sales to rise an organic 4-6%, up from a previous 2-5% forecast, while earnings per preferred share should rise in the high single-digit to mid-teens percentage range, from a previous 5-15% range.
"With industrial demand recovering at a stronger rate than originally expected, we are optimistic about business development over the rest of the year," said CEO Carsten Knobel.
Henkel, which makes Schwarzkopf hair care products, said it expects the hair salon business will recover significantly as coronavirus lockdowns ease, while demand for cleaning products, which was boosted by the pandemic, should return to normal.
First-quarter sales rose an organic 7.7% to €4.97 billion ($5.97 billion), just shy of average analyst forecasts, driven by a rise of 13% for its adhesives unit and 4.1% growth for the laundry and home care business.
Henkel said sales of its glues to the automotive and electronics sectors both grew at double-digit rates, with sales strong in both emerging and mature markets.
Henkel said the detergents business, which competes with Procter & Gamble Co, performed well, with its Persil, Pril, Bref and Somat brands posting double-digit growth.
"The trend was helped both by increased demand for household cleaners as a result of the pandemic, and by our successful product innovations," it said.