The uncertainty among consumers caused by US President Donald Trump's tariff policies is weighing on the business of consumer goods giant Henkel.

The Düsseldorf-based company, with a significant presence in the US, announced on Thursday that its revenue shrank by 1.4 percent to €5.2 billion in the first quarter. In North America, organic sales even plummeted by 3.4 percent--Henkel generates nearly 30 percent of its business in this region. However, the company remains optimistic for the second half of the year, expecting new products to drive growth. CEO Carsten Knobel reaffirmed Henkel's annual outlook.

"The situation triggered by the tariff discussions (...) has certainly brought a great deal of volatility," Knobel lamented. US consumers, faced with this uncertainty, have become more cautious with their spending. "The mood in the US, both in industry and among consumers, is noticeably more subdued (...) and problematic," he concluded. This trend, however, does not apply outside the United States--there are positive developments in regions such as Asia. Additionally, Henkel's adhesives business, its second major segment, saw sales growth from January to March. This division primarily serves industrial clients.

Weeks ago, Knobel had already warned that the first quarter would be muted following last year's gains. The company, known for brands such as Pritt, Schwarzkopf, Syoss, and Persil, still expects revenue growth of between 1.5 and 3.5 percent in 2025, Knobel reiterated. The adjusted EBIT margin is forecast to range between 14.0 and 15.5 percent--compared to approximately 14.3 percent last year.

Rival Beiersdorf increased its organic revenue by 3.6 percent to €2.7 billion in the first quarter. For 2025, the maker of Nivea and Tesa is forecasting organic revenue growth of four to six percent, with a slight rise in operating profit margin.

(Reporting by Matthias Inverardi, editing by Myria Mildenberger. For questions, please contact our editorial teams at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)