Henkel forecasts slower 2026 growth as shares drop 4.2%

The Germany-based consumer goods and adhesives manufacturer Henkel AG & Co. KGaA announced expectations for a sluggish start to 2026, citing persistent weakness in consumer sentiment and geopolitical instability. Shares in the company fell 4.27% following the announcement, as the group warned of only a moderate rise in industrial demand. The company highlighted that the ongoing conflict involving Iran has introduced significant uncertainty into the global market. > We are still confronted with quite weak consumer sentiment in the majorities of the world, which is for sure Europe and North America. And ... the Middle East conflict today is not helpful on that. The consumer goods sector in Europe remains fragmented, with steady demand for home care products offset by reduced discretionary spending. Furthermore, the regional conflict has pressured the industry by driving up energy costs and disrupting vital shipping routes through the Strait of Hormuz. For the current year, the company projects organic sales growth between 1.0% and 3.0%. This follows a 0.9% increase in 2025, which brought total revenue to 20.5 billion euros ($23.9 billion). The midpoint of this new guidance sits slightly below the 2.1% growth anticipated by analysts. Despite the cautious outlook, the group proposed a dividend of 2.07 euros per preferred share, representing a 1.5% increase from the previous year. Management noted that recent portfolio optimizations and acquisitions have positioned the business for long-term expansion.