Henkel shares tick higher after consumer goods group raises 2024 financial outlook

Investing.com -- Shares in Henkelf (ETR:HNKG_p) jumped in early European trading on Friday after the German consumer goods group lifted its annual guidance for both sales and earnings margin.

In a preliminary release, the company said that it now expects to post organic sales growth of 2.5% to 4.5% this year, up from its prior target of 2.0% to 4.0%. Adjusted return on sales, a measure of earnings before interest and taxes margin, is also seen at 13.0% to 14.0%, improving from Henkel's previous outlook of 12.0% to 13.5%.

Analysts at Jefferies said the revised outlook reflects "higher price point adoption" for Henkel's key brands, as well as supply chain savings.

Meanwhile, the Persil laundry detergent maker said that group organic sales grew by 3.0% during the first quarter. It added that it will unveil further details regarding its three-month sales on May 8.

"We have always pointed out that we want to deliver. And that is what we are doing. The changes initiated in both business units are showing clear results”, said Chief Executive Carsten Knobel in a statement, referring to the firm's adhesive technologies and consumer brands units.