DUESSELDORF (dpa-AFX) - Shares of Henkel AG & Co. KGaA (HENOY, HENKY) were losing around 6 percent in the morning trading in Germany after the consumer goods maker issued weak margin outlook for fiscal 2019. Further, the company confirmed its outlook for fiscal 2020.
Looking ahead for fiscal 2019, the company said it expects an organic sales growth of 2 to 4 percent. For the adjusted EBIT margin, Henkel expects a range of 16 to 17 percent and an adjusted earnings per preferred share development in the mid-single digit percentage range below prior year on constant exchange rates.
The company earlier announced that for the year 2018, it expects organic sales growth of 2 to 4 percent, adjusted EBIT margin of around 18 percent and adjusted earnings per preferred share growth of between 3 and 6 percent.
Regarding its mid- to long-term financial ambition for 2020 and beyond, Henkel said its continued commitment to generate sustainable profitable growth and attractive returns is reflected in the view. Henkel still expects organic sales growth of 2 to 4 percent. Adjusted earnings per preferred share growth is expected in the mid- to high-single-digit percentage range on constant exchange rates.
In addition, the Management Board has decided to increase the target range for the 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, compared to current range of 25 to 35 percent.
Further, aiming to capture growth opportunities mainly in its consumer businesses and accelerate the digital transformation, the company said it has decided to step up investments by around 300 million euros annually from 2019 onwards. Around two thirds of this amount will be invested in Henkel's brands, technologies and innovations while around one third will additionally fund the digital transformation across the entire company.
In Germany, Henkel shares were trading at 91.66 euros, down 5.52 percent.
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