Higher raw material costs: Henkel looks to price

Saturday 07 July 2018

Raw Materials Such As oil or some precious metals become more expensive. Henkel feels it too. The boss of the company DAX therefore expects to "prices quite higher" products. He remains attached to the prospects of the group

The customers of the manufacturer of consumer goods Henkel (Persil, Loctite, Schwarzkopf) must adapt to the price increases. "We expect higher overall prices, especially in our adhesives business," said Dax group CEO Hans Van Bylen, the "Rheinische Post" in Düsseldorf.

The reason is the significant increase in purchase prices for raw materials such as oil or certain precious metals. "The Adhesives Division contributes for half of the sales Henkel has benefited from strong demand from the electrical industry, which uses adhesives for tablet, smartphone and China worries less Van Bylen. "Henkel is not directly affected by the latest developments," he said. "Because you produce locally for global sales markets." Nevertheless, he pleaded for the free -exchange, which creates growth and jobs [1965] 905 More on this topic

Van Bylen said that Henkel ended the distribution of Persil on dash buttons with the online retailer Amazon. But & # 39; business increasingly counts on the sale of detergents with commercial partners by subscription: "We see that consumers want to buy products like Persil or Somat rather than by subscription."

Own Online Stores van Bylen decline. It would be more efficient to "bundle the flow of goods into commerce". For us, such individual distribution of our products would be far too expensive and expensive.

The manager also confirmed the Group's outlook. Stick to the 2018 Sales and Results Forecast. Henkel recently announced sales growth of two to four percent. Adjusted sales performance is expected to increase from 17.3% to over 17.5%.

Source: n-tv.de