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Henkel To Continue Business In Russia For Now

Henkel will continue doing business in Russia for the time being, the German consumer goods group's chairperson said on Monday, adding that the company's activities in the country are subject to restrictions.

"This is sometimes viewed very critically by the public. So, it is important to me to stress we are fully applying all applicable sanctions," Simone Bagel-Trah, chairperson told shareholders at the group's annual general meeting.

She added Henkel's management would follow current geopolitical developments very closely and take further measures if necessary.

Investments Halted 

The group, which makes consumer products including Persil laundry detergents and has around 2,500 employees in Russia, stopped all investments as well as advertising and sponsoring measures in the country in early March.

Marco Swoboda, finance chief, Henkel told the same meeting that the company was sticking to the 2022 targets it published in January, though said they were very ambitious given huge uncertainties and rising costs.

Raw Material Prices

On the 8 November 2021, Henkel trimmed its full-year earnings outlook, saying it could not fully compensate for a spike in raw material prices and it also expects an impact from changes in foreign exchange rates.

"Tight supply chains and rising raw material and transport costs are proving to be particularly challenging," Carsten Knobel, chief executive, said in a statement.

Organic Sales Growth

The maker of Persil detergent and Schwarzkopf hair care products said it still expects 2021 organic sales growth of 6% to 8% after third-quarter sales rose by an organic 3.5% to €5.1 billion ($5.89 billion), in line with average analyst forecasts.

News by Reuters, edited by Donna Ahern, Checkout. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.

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