Henkel sees further potential in Russia and Ukraine

《Henkel sees further potential in Russia and Ukraine》:

DUESSELDORF: German consumer goods group Henkel on Monday confirmed that it did not plan to pull out of Russia and Ukraine although it expects the markets to remain difficult due to the ongoing crisis.

“We have achieved significant growth there and we believe in the future of both countries,” Chief Executive Kasper Rorsted said at Henkel’s annual shareholders’ meeting.

Rorsted said the group expected stagnation in Eastern Europe and further pressure on the Russian economy and currency due to the conflict.

Russia is Henkel’s fourth-largest market with annual sales of about 1.1 billion euros ($1.2 billion). It also runs several factories in Ukraine.

The maker of Persil washing powder and Schwarzkopf hair care products confirmed it expects organic sales, which exclude acquisitions, to grow 3-5 per cent in 2015. It still targets an adjusted margin on earnings before interest and tax (EBIT) of 16 per cent after 15.8 per cent in 2014.

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