BREAKING NEWS

BREAKING NEWS

Henkel to invest more in new brands, digitalisation

Henkel to invest more in new brands, digitalisation
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Ina Fassbender(Reuters)
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BERLIN (Reuters) - Henkel , maker of consumer brands including Persil detergent and Schwarzkopf shampoo, said on Monday it would increase investment in new brands, marketing and digitalisation.

Henkel said in a statement it would spend about 300 million euros ($341 million) annually extra from 2019. About two-thirds will go on its brands, innovations and marketing, while the rest will go on funding digital transformation at the company.

The German company said the investment would mean that its adjusted earnings per share (EPS) for 2019 would likely fall by about 5 percent, although it stuck to its usual goal of annual organic sales growth of 2 to 4 percent.

It also said it wants to increase the target range for dividend payout ratio of net income after non-controlling interests and adjusted for exceptional items to 30 to 40 percent from fiscal year 2019 onwards from 25 to 35 percent now.

($1 = 0.8786 euros)

(Reporting by Emma Thomasson; editing by Thomas Seythal)

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