The German company Henkel has issued a warning about a potential increase in the prices of its products in the near future, citing rising pressures from the ongoing conflict, as well as escalating production costs and supply chain challenges.
CEO Carsten Knobel stated that any significant rise in costs would necessitate passing these expenses onto customers, emphasizing that delaying a decision on price hikes could exacerbate the company’s financial burdens.
He explained that Henkel is indirectly affected by the crisis, particularly through increased raw material prices and heightened transportation and logistics costs. He pointed out that the surge in oil prices is impacting suppliers and shipping companies, which in turn pass some of these costs onto manufacturers.
Knobel expressed hope that the conflict would not prolong, as it is causing turmoil in global markets. He mentioned that Henkel has previously raised its product prices in response to inflationary waves over the years.
Regarding consumer behavior, he noted a growing interest in private label brands, yet reassured that there remains a strong loyalty to Henkel’s major brands, such as Persil and Schwarzkopf, even as consumers seek to use products more economically.
Founded in 1876 and headquartered in Düsseldorf, Henkel is a leading global consumer goods company producing a diverse range of products, including detergents, personal care items, and adhesives, with revenues exceeding €20.5 billion last year.