For Henkel Hellas, the company behind brands such as Schwarzkopf, Syoss, Persil, Bref, etc., last year was a good one.
Net profits increased by 88% to 4.14 million euros, pre-tax profits amounted to 5.71 million euros from 3.15 million euros and sales reached 99.45 million euros (+1.8%). However, during the same period gross profits decreased by 3.4%, to 30.35 million euros, and the gross margin fell to 30.5% from 32.2%. The reason, according to the company, was the increase in inventory costs.
And while last year the problem was margins, this year the situation appears to have become more complicated. For the current fiscal year, Henkel has on its radar the ongoing Russia–Ukraine conflict, instability in the Middle East and tensions in Asia/Pacific and South Asia.
“Developments in key geopolitical hotspots (indicatively: the ongoing Russia–Ukraine conflict, instability in the Middle East with possible effects on energy flows and shipping, as well as tensions in Asia/Pacific and South Asia) may cause fluctuations in energy and raw material prices, delays or rerouting of transport, as well as volatility in supply chain costs,” the company states.
Added to the same backdrop now is also the return of tariffs. With the company noting that “the increased trend toward trade restrictions/tariffs and the rearrangement of international trade flows may affect import costs and product availability, with indirect effects on price formation and demand.”
Nevertheless, the Greek subsidiary has a strong “cushion.” Cash reserves increased to 34.9 million euros from 31.85 million euros, equity reached 33.39 million euros, while short-term liabilities decreased by 11.2%, to 20.22 million euros.