Henkel on Thursday raised its forecast for organic sales growth after reporting lower first-half net profit.
The German chemicals and consumer goods group, known for brands like Persil and Schwarzkopf, said net profit attributable to shareholders fell 11% to €988 million ($1.14 billion) from €1.11 billion a year earlier.
Adjusted operating profit (EBIT) edged up 0.3% to €1.62 billion, while the adjusted EBIT margin improved to 15.7% from 15.5%.
First-half sales slipped 0.5% to €10.35 billion, although second-quarter revenue rose 4.6% to €5.40 billion.
Henkel said it still expects adjusted earnings per preferred share, at constant exchange rates, to increase by a low- to high-single-digit percentage this year. It also reaffirmed its forecast for an adjusted EBIT margin of 14.5% to 16.0%.
The company, however, raised its outlook for organic sales growth to 1.5% to 3.5%, up from a previous forecast of 1.0% to 3.0%.
It also lifted its forecast for organic sales growth in its Adhesive Technologies division to 2.0% to 4.0%, from 1.0% to 3.0%, while leaving its outlook for the Consumer Brands business unchanged at growth of 0.5% to 2.5%.
