Henkel AG & Co. KGaA / DE0006048432

Henkel AG & Co. KGaA: Very strong business performance in first half of 2024 / Henkel raises its FY earnings outlook

EQS-Ad-hoc: Henkel AG & Co. KGaA / Key word(s): Half Year Results/Change in Forecast
Henkel AG & Co. KGaA: Very strong business performance in first half of 2024 / Henkel raises its FY earnings outlook

17-Jul-2024 / 14:02 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

---

Düsseldorf, 2024-07-17T13:30+02:00 (CEST) Very strong business performance in first half of 2024 / Henkel raises its FY earnings outlook Düsseldorf – Based on preliminary figures, Henkel achieved a very strong business performance in the first half of the year, exceeding market expectations, particularly with regard to the adjusted return on sales and adjusted earnings per share. Due to the very strong development so far and factoring in the expected business development in the remainder of the year Henkel has raised its outlook for the earnings development in 2024 again. This is mainly due to higher profit expectations in the Consumer Brands business unit, while at the same time increasing investments in marketing to support innovations. The outlook still considers the expectation of higher prices for direct materials in the second half of the year. Preliminary business results for the first half of 2024 According to preliminary figures, Henkel generated sales of 10,813 million euros in the first half of 2024. This corresponds to good organic sales growth of 2.9 percent. Growth in both business units was driven by a positive price development (+2.5 percent). At Group level, volume development, which continues to be influenced by the portfolio measures in the Consumer Brands unit, was slightly positive (+0.4 percent) and also showed a sequential improvement compared to the first quarter of 2024. In nominal terms, sales were down by -1.0 percent compared to the same period of the previous year, in particular due to the sale of business activities in Russia and to negative foreign exchange effects while the recently closed acquisitions of Seal for Life and Vidal Sassoon contributed positively. Adjusted operating profit (adjusted EBIT) rose by 28.4 percent to 1,610 million euros in the first half of the year, compared to 1,254 million euros in the same period of the previous year. The adjusted return on sales (adjusted EBIT margin) also increased significantly by 340 basis points to 14.9 percent. Adjusted earnings per preferred share rose to 2.78 euros in the first half of 2024. At constant exchange rates, this corresponds to an increase of 32.9 percent compared to the first half of 2023. Sales in the Adhesive Technologies business unit amounted to 5,475 million euros in the first half of 2024. Organic sales growth was at 2.0 percent. This development was driven by a price component of +0.2 percent and volume growth of 1.8 percent. Thus, the business unit showed a sequential improvement in volume development compared to the first quarter of 2024. Adjusted operating profit rose by 21.8 percent to 933 million euros in the first half of 2024, compared to 766 million euros in the same period of the previous year. The adjusted return on sales increased significantly by 300 basis points to 17.0 percent. The Consumer Brands business unit generated sales of 5,266 million euros in the first six months of 2024. Organic sales growth amounted to 4.3 percent. This development was driven by a price component of +5.1 percent. Primarily due to continued portfolio optimization measures, volume development was negative at -0.9 percent. However, it showed a sequential improvement compared to the first quarter of 2024. The adjusted operating profit amounted to 753 million euros and was therefore 34.7 percent higher than in the same period of the previous year. The adjusted return on sales increased significantly by 390 basis points to 14.3 percent. Outlook for 2024 Henkel now expects the following sales and earnings development for fiscal 2024: Organic sales growth: 2.5 to 4.5 percent (unchanged) Adhesive Technologies: 2.0 to 4.0 percent (unchanged) Consumer Brands: 3.0 to 5.0 percent (unchanged) Adjusted return on sales: 13.5 to 14.5 percent (previously: 13.0 to 14.0 percent) Adhesive Technologies: 16.0 to 17.0 percent (unchanged) Consumer Brands: 13.0 to 14.0 percent (previously: 12.0 to 13.0 percent) Adjusted earnings per preferred share (EPS): Increase in the range of +20.0 to +30.0 percent at constant exchange rates (previously: +15.0 to +25.0 percent) Further expectations for 2024 The following expectations for 2024 remain unchanged compared to the updated outlook from the beginning of May 2024: Acquisitions/Divestments: neutral impact on nominal sales growth Translation of sales in foreign currencies: negative impact in the low to mid-single-digit percentage range 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 Henkel will report on further details of the business development in the second quarter and the first half of the year on August 13, 2024, as planned. Henkel AG & Co. KGaA Further information regarding financial instruments issued by Henkel

Company:	Henkel AG & Co. KGaA
Contact:	Heinz Nicolas Department: CLC / Telephone: [phone] Email: [e-mail]
Address:	40191 Düsseldorf, Deutschland
Henkel Preferred Share:	ISIN DE0006048432 // WKN 604843
Henkel Ordinary Share:	ISIN DE0006048408 // WKN 604840
Listing:	Regulated market (Prime Standard), all eight German Stock Exchanges

For further financial instruments see www.henkel.com/ir Disclaimer This information contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, etc. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the 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 from the 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 any forward-looking statements. This information includes – in the applicable financial reporting framework not clearly defined – supplement financials measures that are or may be alternative performance measures (non-GAAP-measures). These supplement financials measures should not be viewed in isolation or as alternatives to measures of Henkel’s net assets and financial positions or results of operations as presented in accordance with applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Explanations of financial measures used can be found in the Annual Report of Henkel (available at https://www.henkel.com/investors-and-analysts/financial-reports/annual-reports), in particular in the Combined Management Report. This document has been issued for information purposes only and is not intended to constitute an investment advice or an offer to sell, or a solicitation of an offer to buy, any securities.

End of Inside Information

---

17-Jul-2024 CET/CEST 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:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
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:	1947507

End of Announcement	EQS News Service

---

1947507  17-Jul-2024 CET/CEST