Henkel AG & Co. KGaA / DE0006048432
08.05.2024 - 07:30:28Henkel delivers strong organic sales growth in the first quarter
| Henkel AG & Co. KGaA / Key word(s): Quarterly / Interim Statement/Quarter Results Henkel delivers strong organic sales growth in the first quarter 08.05.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. Very good start to fiscal 2024 Henkel delivers strong organic sales growth in the first quarter Group sales: around 5.3 billion euros, organic growth of 3.0 percent Organic sales increase driven by both business units: Adhesive Technologies: positive organic sales growth of 1.3 percent Consumer Brands: very strong organic sales growth of 5.2 percent Acquisitions of Seal for Life Industries and Vidal Sassoon in China closed earlier than anticipated Further progress in implementing strategic growth agenda Outlook for fiscal 2024 significantly raised on May 3: Organic sales growth: 2.5 to 4.5 percent (previously: 2.0 to 4.0 percent) Adjusted return on sales: 13.0 to 14.0 percent (previously: 12.0 to 13.5 percent) Adjusted earnings per preferred share (EPS): Increase in the range of +15.0 to +25.0 percent at constant exchange rates (previously: +5.0 to +20.0 percent) Düsseldorf, May 8, 2024 – In the first quarter of 2024, Henkel achieved Group sales of around 5.3 billion euros and generated strong organic sales growth of 3.0 percent. The increase was driven by a positive price development in both business units. Volume development at Group level, which is still being impacted by the portfolio measures in the Consumer Brands business unit, showed a further sequential improvement compared to the fourth quarter of 2023. In nominal terms, sales were down -5.2 percent compared to the prior-year quarter – predominantly due to the sale of the business activities in Russia and to negative foreign exchange effects. “We had a very good start to the year. In addition, we were able to close the acquisitions of Seal for Life Industries and Vidal Sassoon in China faster than anticipated and will thus further strengthen our businesses,” said Carsten Knobel, CEO of Henkel. “In light of these developments, we significantly raised our sales and earnings outlook for 2024 last week. This demonstrates: We have a clear strategy which we are executing on stringently. We deliver on what we have promised. And we are on the right track for further profitable growth.” The positive organic sales increase of the Adhesive Technologies business unit in the first quarter was primarily driven by strong organic sales growth in the Mobility & Electronics business area. Very strong organic sales growth in the Consumer Brands business unit was fueled by all business areas, with a particular contribution coming from the Hair business.
-5.2 percent compared to the prior-year quarter (5,609 million euros). Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 3.0 percent. The strong organic sales growth at Group level was driven by pricing. Acquisitions/divestments reduced sales by -4.3 percent. Foreign exchange effects had a further negative impact of -3.9 percent on sales development.
Sales performance Adhesive Technologies The Adhesive Technologies business unit achieved sales of 2,677 million euros in the first quarter of 2024, representing a nominal decrease of -4.1 percent compared to the prior-year quarter (2,791 million euros). Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 1.3 percent compared to the first quarter of 2023. Both price and volume showed a positive development. Foreign exchange effects reduced sales by -3.8 percent. Acquisitions/divestments had a further negative effect of -1.7 percent.
Mobility & Electronics business area, overall sales performance in the region was below that of the prior-year quarter. The IMEA region achieved double-digit organic sales increase, with all business areas contributing with double-digit growth rates. Latin America posted a negative organic sales development in all business areas. By contrast, sales growth in the Asia- Pacific region was very strong – mainly driven by a significantly positive development in China, which was supported by first signs of a stabilizing market environment following the challenging conditions encountered in the prior year. Sales performance Consumer Brands In the Consumer Brands business unit, sales in the first quarter of 2024 totaled 2,605 million euros, a nominal decrease of -6.0 percent versus the prior-year quarter. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 5.2 percent. Pricing in the business unit remained very strong compared to the first quarter of 2023. Volumes declined slightly, particularly due to the impacts of the ongoing portfolio measures. Foreign exchange effects had a negative impact of -4.0 percent on sales. Acquisitions/divestments reduced sales by a further -7.2 percent.
(previously: negative impact in the low single-digit percentage range) Translation of sales in foreign currencies: negative impact in the low to mid-single-digit percentage range (previously: negative impact in the mid-single-digit percentage range) The following expectations for 2024 have remained unchanged: Prices for direct materials: flat development1 Restructuring expenses of 250 to 300 million euros Cash outflows from investments in property, plant and equipment and intangible assets of between 650 and 750 million euros 1 Compared to the previous year’s average. About Henkel With its brands, innovations and technologies, Henkel holds leading market positions worldwide in the industrial and consumer businesses. Henkel’s Adhesive Technologies business unit leads the global market for adhesives, sealants and functional coatings. The Consumer Brands business unit occupies a leading position in numerous markets and categories around the globe, particularly in the Laundry & Home Care and Hair business areas. Henkel’s three biggest brands are Loctite, Persil and Schwarzkopf. In fiscal 2023, Henkel reported sales of more than 21.5 billion euros and adjusted operating profit of around 2.6 billion euros. Henkel’s preferred shares are listed in the German stock index DAX. Sustainability has a long tradition at Henkel, and the company has a clear sustainability strategy with specific targets. Henkel was founded in 1876 and today employs a diverse team of around 48,000 people worldwide – united by a strong corporate culture, shared values and a common purpose: “Pioneers at heart for the good of generations.” For further details, please see www.henkel.com. This document contains statements referring to future business development, financial performance and other events or developments of future relevance for Henkel that may constitute forward-looking statements. Statements with respect to the future are characterized by the use of words such as expect, intend, plan, anticipate, believe, estimate, and similar terms. Such statements are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. These statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially (both positively and negatively) from forward-looking statements. Many of these factors are outside Henkel’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements. This document includes supplemental financial indicators that are not clearly defined in the applicable financial reporting framework and that are or may be alternative performance measures. These supplemental financial indicators should not be viewed in isolation or as alternatives to measures of Henkel’s net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. This document has been issued for information purposes only and is not intended to constitute investment advice or an offer to sell, or a solicitation of an offer to buy, any securities. Financial calendar Publication of Half-Year Report 2024: Tuesday, August 13, 2024 Publication of Quarterly Statement Q3 2024: Wednesday, November 6, 2024 Contact Investors & Analysts Press & Media Leslie Iltgen Phone: +49 211 797-1631 Email: leslie.iltgen@henkel.com Jennifer Ott Phone: +49 211 797-2756 Email: jennifer.ott@henkel.com Dr. Dennis Starke Phone: +49 211 797-5601 Email: dennis.starke@henkel.com Dr. Sascha Kieback Phone: +49 211 797-1810 Email: sascha.kieback@henkel.com Press & Media Lars Witteck Phone: +49 211 797-2606 Email: lars.witteck@henkel.com Wulf Klüppelholz Phone: +49 211 797-1875 Email: wulf.klueppelholz@henkel.com Hanna Philipps Phone: +49 211 797-3626 Email: hanna.philipps@henkel.com Further information containing download material, and the link to listen in on the conference call, are available at: www.henkel.com/press www.henkel.com/ir 08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Language: | English |
| Company: | Henkel AG & Co. KGaA |
| Henkel Str. 67 | |
| 40191 Düsseldorf | |
| Germany | |
| Phone: | +49 (0)211 797-0 |
| Fax: | +49 (0)211 798-4008 |
| E-mail: | press@henkel.com |
| Internet: | www.henkel.de |
| ISIN: | DE0006048432, DE0006048408 |
| WKN: | 604843, 604840 |
| Indices: | DAX |
| Listed: | Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange |
| EQS News ID: | 1898139 |
| End of News | EQS News Service |
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