Henkel to merge business units, raises mid-to-long-term sales goals

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BERLIN, Jan 28 (Reuters) - German consumer goods group Henkel (HNKG_p.DE) announced on Friday that it will merge its laundry and beauty care units as part of plans to strengthen its consumer goods business, and nudged up its mid-to-long-term sales goal.

With the merging of its Laundry & Home Care and Beauty Care units, which should be complete by early 2023 at the latest, the company said it was now aiming for mid- to long-term organic sales growth of 3-4%, versus the previous 2-4% target.

It is also aiming for mid- to high-single-digit percentage growth in adjusted earnings per preferred share.

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"We will join forces in our consumer goods businesses to create one strong, integrated business unit as a foundation for future profitable growth," said Chief Executive Officer Carsten Knobel.

Henkel also announced a share buyback programme, with a total volume of up to 1 billion euros, or about 3% of the company's capital stock, that is expected to begin next month.

The maker of Persil detergent and Schwarzkopf hair care products announced the changes after preliminary figures showed that it hit the higher end of its 2021 expectations with 7.8% organic sales growth.

For 2022, however, Henkel expects organic sales growth of 2-4%, reflecting the current level of market uncertainty.

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Reporting by Miranda Murray and Matthias Inverardi Editing by Paul Carrel

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