Henkel to Merge Businesses, Launch EUR1 Billion Share Buyback -- Update
28 Januar 2022 - 10:06AM
Dow Jones News
By Cecilia Butini
Henkel AG & Co. KGaA said Friday that it intends to merge
its laundry-and-home-care and beauty-care divisions into one unit
to be called Henkel Consumer Brands, and that it will launch a
share-buyback program with a total value of up to one billion euros
($1.11 billion).
The German home and personal-care products company also reported
preliminary results for 2021, and set targets for 2022 and for the
mid-to-long term.
In the mid-to-long term, Henkel said it is pursuing organic
sales growth of 3% to 4% and an adjusted margin on earning before
interest, taxes, depreciation and amortization of around 16%.
The company added that it is targeting growth in adjusted
earnings per share in the mid-to-high single-digit percentage
range. The targets are based on the planned division merger, which
the company said is expected to generate "significant
synergies."
The planned share-buyback program is set to run from February
2022 to March 31, 2023.
Based on preliminary figures, Henkel generated sales of EUR20.07
billion in 2021, with an organic sales growth of 7.8%. Margin on
earnings before interest and taxes was 13.4%, while preliminary
adjusted earnings per preferred share were EUR4.56, the company
said.
Looking at 2022, Henkel said it expects organic sales growth in
the range of 2% to 4%, EBIT margin between 11.5% and 13.5%, and
adjusted EPS developing in the range between negative 15% and 5% at
constant exchange rates, reflecting market uncertainty and
volatility.
The outlook mostly comes short of a current consensus provided
by Vara Research, which saw group organic sales growth of 4%, an
adjusted EBIT margin of 13.6%, and an EPS increase of 5%, Henkel
said.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
January 28, 2022 03:51 ET (08:51 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Henkel AG & Co KGAA (TG:HEN3)
Historical Stock Chart
Von Feb 2024 bis Mär 2024
Henkel AG & Co KGAA (TG:HEN3)
Historical Stock Chart
Von Mär 2023 bis Mär 2024