DGAP-Adhoc

Henkel AG & Co. KGaA: Henkel provides new outlook for fiscal 2020 / Preliminary figures for the third quarter 2020

DGAP-Ad-hoc: Henkel AG & Co. KGaA / Key word(s): Forecast Henkel AG & Co. KGaA: Henkel provides new outlook for fiscal 2020 / Preliminary figures for the third quarter 2020 09-Oct-2020 / 08:34 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Düsseldorf, 2020-10-09T08:15+02:00 (MESZ)

Henkel provides new outlook for fiscal 2020
Preliminary figures for the third quarter 2020

Based on the business development in the first nine months of 2020 and the current assumptions regarding the business performance in the fourth quarter, the Management Board of Henkel AG & Co. KGaA today approved a new outlook for fiscal 2020.

As a result of the dynamic spread of the COVID-19 pandemic and the high level of uncertainty about the impact and development of the global economy in the course of the year, the Management Board of Henkel AG & Co. KGaA had decided on April 7, 2020, to no longer maintain the forecast for fiscal 2020 that was given in the Annual Report 2019.

Due to the effects of the COVID-19 pandemic, current forecasts anticipate a strongly negative development of the global economy in 2020. The new outlook is based on the assumption that the industrial demand and business activity in areas of importance to Henkel in the fourth quarter will be below prior year but will not deteriorate significantly. The decisive factor in this context will be the future development of global infection rates and the development of pandemic-related restrictions. In this context, Henkel assumes that there will be no far-reaching lockdowns in the core regions essential for the company in the fourth quarter of 2020.

Taking these developments into account, Henkel expects organic sales growth of between -1.0 and -2.0 percent at Group level in fiscal 2020.

For the Adhesive Technologies business unit, which is likely to be significantly impacted by a sharp decline in general industrial demand and, in particular, in the automotive industry, Henkel anticipates organic sales growth in the range between -5.5 and -6.5 percent. For the Beauty Care business unit, Henkel currently anticipates organic sales growth in the range between -2.0 and -3.0 percent. A significant decline in the Hair Salon business due to the pandemic, particularly in the first half, will have an impact on this business unit in the full fiscal year. For Laundry & Home Care, Henkel expects organic sales growth in the range between +4.5 and +5.5 percent.