Henkel maintains growth momentum in Q3

Henkel 2020 report

Henkel successfully maintained its growth momentum in the third quarter of fiscal year 2022 and achieved group sales of around 6 billion euros. 

This represents a new all-time high for quarterly sales and equates to double-digit organic growth of +11.3%, driven by double-digit price developments in all business units and across all regions. 

Volumes were down overall year on year due to the consumer businesses. In nominal terms, sales grew by +17.3%

Henkel CEO Carsten Knobel said: “In a market environment that remains extraordinarily challenging, we continued to drive our strategy execution and achieved clear double-digit sales growth. 

“It is particularly gratifying that all business units and regions contributed to this strong business performance, which was driven, in particular, by the clear double-digit increase in sales achieved by the Adhesive Technologies business unit in the third quarter.

“The double-digit sales growth in the third quarter is further proof of the strength of our robust and balanced portfolio of successful brands and innovative technologies. In addition, we have consistently driven forward the implementation of our portfolio optimisation measures, continued our strict cost management and worked on further efficiency improvements. 

“Moreover, as we merge our two consumer businesses, we are ahead of our planned schedule in implementing the new structures. 

“This strong performance is the achievement of our global team whose outstanding commitment is critical to the long-term success of Henkel in these challenging times.”

Henkel’s double-digit sales growth in the third quarter was driven predominantly by the Adhesive Technologies business unit. All business areas recorded significant or double-digit organic sales increases.

The Beauty Care business unit achieved positive organic sales growth in the third quarter, despite implementing the announced portfolio measures. Both the Professional and Consumer business areas contributed to this performance.

The Laundry & Home Care business unit generated significant organic sales growth, driven mainly by the Laundry Care business area.

In regional terms, sales increased organically in all regions in the third quarter. The Group’s strong sales performance was mainly driven by the emerging markets, where all regions showed double-digit organic growth rates.

Looking ahead to the rest of fiscal 2022, Knobel commented: “We are operating in a business environment which is characterised by a high degree of volatility and uncertainty. 

“In this overall inflationary environment with increased raw material and energy costs, we delivered a strong business performance in the first nine months. Against this background, we are raising our full year 2022 guidance for sales and earnings.”

At Group level, Henkel now expects organic sales growth of +7.0 to +8.0% (previously: +5.5 to +7.5%) and adjusted return on sales (EBIT margin) in the range of 10.0 and 11.0% (previously: 9.0 and 11.0%). For adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel now expects a decline in the range of -25 to -15% (previously: -35 and -15%).

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