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.
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.