19 Apr 2022 15:10

Henkel decides to exit Russia

MOSCOW. April 19 (Interfax) - German manufacturer of cosmetics and household chemicals, Henkel, has decided to shutter its business in Russia.

Henkel will work with the Russian team in order to prepare the details of the process. A total of 2,500 employees in Russia will continue to work and receive salaries, the company said.

Henkel also noted that it could not yet assess the impact of the termination of business in Russia on its financial results.

In early March, Henkel announced that it was stopping new investments in Russia, as well as ending advertising campaigns in state media and all sponsorship activities.

The company's Russian press service later clarified that production and operational activities would continue in the country.

Henkel combines adhesive technologies; laundry & home care, cleaners and detergents; and beauty care, cosmetics. The brand portfolio includes Persil, Bref, Pril, Laska, Schwarzkopf, Syoss, Fa, Ceresit, Moment adhesives, Loctite, and others.

According to data in the SPARK-Interfax analytical system, Henkel Rus LLC increased revenue 13.1% to 95.14 billion rubles to Russian Accounting Standards (RAS) in 2021. Net profit totaled 7.48 billion rubles against 7.84 billion rubles the previous year. The company allocated 5.6 billion rubles for dividends last year, and other profit distribution payments in favor of owners, compared to 6.65 billion rubles in 2020.