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    Home > Coatings News > Paints and Coatings Market > Hangao's organic sales grew strongly by 3.9% in the third quarter

    Hangao's organic sales grew strongly by 3.9% in the third quarter

    • Last Update: 2020-10-17
    • Source: Internet
    • Author: User
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    On October 12, 2020, Henley released its new fiscal 2020 forecast.
    the first half of 2020, the global economy has slumped, and demand in many industries has fallen sharply, which has severely affected Henley.
    but Hengo achieved strong organic sales growth of 3.9 per cent in the third quarter.
    sales reached about 5 billion euros, and all business units contributed to this good performance.
    in this unprecedented global crisis, Henley remains on the lookaat, focusing on protecting employees, supplying customers, ensuring business continues to operate, and providing support to the community.
    team spirit and the hard work of our employees around the world to achieve these goals in the first half of 2020.
    is such a tough attitude that Henley's broad portfolio in consumer goods and industry has mitigated the impact of the crisis on overall sales and earnings performance: in the first six months of 2020, Henley achieved sales of about 9.5 billion euros, operating profit of 1.2 billion euros and an EST margin of 12.6%.
    paid all dividends to shareholders in 2019, while achieving very strong free cash flow, further improving the net financial position.
    during the outbreak, Hengao did not shorten staff hours, did not apply for government assistance, and did not lay off workers as a result of the outbreak.
    , in a severe environment, The overall performance of Hengao remains sound.
    in the Adhesive Technology business, all business areas showed signs of recovery compared to the second quarter.
    the cosmetics/beauty products division, the hair salon business also recovered compared to the second quarter, while the retail business achieved significant organic sales growth compared to the same period last year.
    detergent and home care business has also achieved tremendous growth, and continue to maintain a good momentum of development.
    previously, Hanley withdrew its full-year forecast in April 2020 due to the high level of uncertainty caused by the outbreak.
    for Hengo, organic sales are now expected to fall 1.0 to 2.0 per cent in fiscal 2020.
    Spite tight cost controls, full-year earnings will be more impacted than sales revenue due to a sharp drop in demand in the industrial and hair salon businesses and increased growth investments in marketing, advertising, digital and IT.
    , Henley expects the group's adjusted EST margin to be between 13.0 per cent and 13.5 per cent.
    expected to fall 18 to 22 per cent on a fixed exchange rate basis. Carsten Knobel, chief executive of
    Hengo, concluded: "The organic sales growth in the third quarter reflects our ability to deliver a robust and diverse portfolio of products to customers and consumers in the industrial and consumer goods business, including successful brands and innovative technologies.
    particularly pleased to see positive developments in all business units.
    this is partly due to the catch-up effect we have had since the second quarter, when we were severely affected by the new crown pneumonia outbreak.
    we expect to be negatively affected by the outbreak in the fourth quarter, but we don't think the massive blockade that occurred in many countries in the second quarter will be repeated.
    , we firmly believe that we will continue to actively implement the strategic focus of targeted growth and will become stronger from the crisis.
    would like to thank our employees around the world for their hard work in contributing significantly to this goal.
    preliminary sales performance data for the third quarter of 2020 showed that Henley achieved an organic sales growth of 3.9% regardless of exchange rate impact and acquisition/divestment impact.
    data showed that the Adhesive Technology business grew organic sales by 1.3% in the third quarter.
    showed signs of recovery in all business areas compared to the second quarter.
    data from the Cosmetics/Beauty Products division showed strong organic sales growth of 4.3%.
    's hair salon business, despite a recovery, was still below the level of the same period last year, with the retail business achieving significant organic sales growth in the third quarter.
    benefited from continued strong demand for detergents and home care products, as well as the catch-up effect in the second quarter, preliminary data showed that organic sales in the detergent and home care business also grew significantly by 7.7% in the third quarter.
    he will release its third quarter 2020 financial results on November 10, 2020.
    preliminary sales figures for the first nine months of 2020 show that Henley's total sales in the first nine months of 2020 will be around 14.5 billion euros.
    that meant organic sales fell 2.1 per cent overall.
    sales in the Adhesive Technology division fell 6.8 per cent in the first nine months of 2020.
    4.2 per cent in the cosmetics/beauty products division.
    5.8 per cent in the organic sales division of our detergent and home care businesses.
    's FY2020 outlook is based on business developments in the first nine months of 2020 and current fourth-quarter earnings forecasts.
    Due to the spread of the new crown pneumonia outbreak and the high degree of uncertainty about the impact and development of the global economy over the year, the management committee of Henley Limited and the two companies decided on April 7, 2020 not to maintain the fiscal 2020 forecast given in the 2019 Annual Report.
    affected by the new crown pneumonia outbreak, the global economy is expected to experience deep negative growth in 2020.
    outlook for the new fiscal year is based on estimates that industrial demand and business activity in key areas of Henley will be lower in the fourth quarter than last year, but will not decline significantly.
    changes in global infection rates and the development of outbreak-related restrictions will be decisive factors in this regard.
    , Hengo doesn't think there will be a larger blockade of the company's vital core areas in the fourth quarter of 2020.
    these aspects, Hengo expects organic group sales to fall 1.0 to 2.0 per cent in FY2020.
    understand that a key element of Hengao's future direction is active portfolio management.
    has looked at brands and categories with total sales of more than 1 billion euros, mainly consumer goods, about 50 percent of which will be sold or discontinued by the end of 2021.
    despite the current market uncertainty, Hengo reiterated that it would implement measures to re-structure its portfolio in accordance with the announced timetable.
    year, Henco has suspended a number of operations and signed a sale agreement with sales totalling about 80 million euros, mainly in the adhesive technology business.
    for the Adhesive Technology division, which is likely to be significantly affected by a sharp decline in overall industry demand, particularly in the automotive sector, Henco expects organic sales to fall 5.5 to 6.5 per cent.
    's cosmetics/beauty products division, Hengo now expects organic sales to fall 2.0 to 3.0 per cent.
    affected by the outbreak, particularly the sharp decline in the hair salon business in the first half of the year, will have an impact on the business throughout the fiscal year.
    for the detergent and home care businesses, Hengo expects organic sales to grow 4.5 to 5.5 per cent.
    group, Henley expects adjusted return on sales (EST) to be between 13.0 per cent and 13.5 per cent.
    Henco expects an E/E margin of between 14.5% and 15.0% for the Adhesive Technology business, between 10.0% and 10.5% for the Cosmetics/Beauty Products business and between 15.0% and 15.5% for the Detergent and Home Care division.
    earnings per share are expected to fall 18 to 22 per cent at a fixed exchange rate.
    adjusted for one-time expenses and income and restructuring costs.
    aims to accelerate efficient innovation by increasing investment, including strengthening innovation models.
    continued investment in core categories and regions will support innovation and branding.
    , Hengo is committed to further increasing its growth investments in advertising, digital and IT.
    despite the macroeconomic challenges of the first half of this year, Hengo has increased its investment by tens of millions of euros.
    .
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