CEO Carsten Knobel did not want to be spoiled by the joy of the highest sales in a single quarter in Henkel's history. "You can only push through price increases if you have strong brands and technologies," Knobel said in a conference call on Thursday.

Jonas Jansen

Business correspondent in Dusseldorf.

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The consumer goods group was only able to achieve record sales of 5.6 billion euros through double-digit price increases, while the sales volume of its products declined. Sales increased by 6.6 percent year-on-year, with particularly strong growth in the consumer business, which Henkel bundled into a new division at the beginning of the year. In addition to products for hair care, the detergent and cleaning products business is also part of it. Its organic growth of 7 percent is mainly due to the fact that price increases in the consumer business are passed on with a greater delay than in industrial customers.

Cost increase not yet compensated

In the adhesives division, double-digit sales growth has already been visible in recent months, which was also primarily price-driven. There is no end in sight: Knobel pointed out that the increased raw material costs have not yet been fully compensated. Compared to the same quarter of the previous year, both material and raw material costs continued to climb. For the year as a whole, the consumer goods group expects a "low to mid single-digit percentage increase" in costs, and Henkel also expects wages to rise by a similar magnitude.

In terms of pricing, Henkel focuses on its own profitable growth, Knobel emphasized that the group is "in intensive negotiations" with dealers. In the course of the year, there will also be further declines in volumes, while prices will continue to rise at the same time. Henkel has not yet been affected by complete listings like other major brand owners. It was only at the end of April that Edeka CEO Markus Mosa also complained about Henkel, the retailer is struggling particularly fiercely with major consumer goods manufacturers over supply and prices.

Henkel confirmed its full-year forecast, the Management Board expects organic sales growth of 1 to 3 percent, and Knobel was confident that it would reach the upper end of the targeted range. Currency effects and portfolio changes are not included in this. Henkel had put brands and businesses up to a volume of 1 billion euros to the test, of which the Group had sold or discontinued businesses worth 2022 million euros at the end of 400. Adjusted return on sales is expected to be between 10 and 12 percent due to persistently high costs. The Group is particularly cautious about adjusted earnings per preferred share, ranging from minus 10 to plus 10 percent at constant exchange rates.