Investor Relations News

• Group sales rise to around 5.5 billion euros, +3.3 percent organic growth
• Organic sales increase driven by both business units:
  • Adhesive Technologies achieves strong organic growth of +3.7 percent
  • Consumer Brands reports good organic sales growth of +2.7 percent
• Ambitious climate protection targets expanded through net-zero roadmap: Greenhouse gas emissions to be reduced to net-zero by 2045
• Sales and earnings guidance for fiscal 2024 reiterated – clear chance to reach upper half of earnings ranges

In line with its ambitions for sustainability within its agenda for purposeful growth, Henkel has defined a net-zero roadmap, substantially extending its targets for emissions reduction along the value chain. To achieve net-zero, the company has set the following targets:

• Group sales grow organically by 2.9 percent in the first half of the year to around 10.8 billion euros ‏(nominal -1.0 percent) – growth in both business units
• Operating profit ‏(EBIT)*: very strong increase to 1,610 million euros ‏(+28.4 percent)
• EBIT margin* also improves very strongly to 14.9 percent ‏(+340 basis points)
• Earnings per preferred share ‏(EPS)* increase by around a third to 2.78 euros, +32.9 percent at constant exchange rates
• Very good free cash flow of around 800 million euros
• Further progress in implementing strategic growth agenda
• Earnings outlook for fiscal 2024 already raised in mid-July:
  • Organic sales growth: 2.5 to 4.5 percent ‏(unchanged)
  • Adjusted return on sales: 13.5 to 14.5 percent ‏(previously: 13.0 to 14.0 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)
• Mid- to long-term financial ambition already to be reached mid-term

Henkel today published its preliminary figures for the first half of 2024. Sales amounted to 10,813 million euros. This corresponds to good organic sales growth of 2.9 percent. In particular, the adjusted return on sales and adjusted earnings per share exceeded market expectations: The adjusted return on sales (adjusted EBIT margin) rose to 14.9 percent (previous year: 11.5 percent). Adjusted earnings per preferred share amounted to 2.78 euros in the first half of 2024. At constant exchange rates, this represents an increase of 32.9 percent compared to the same period of the previous year. 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. 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. 

• 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)

Based on the very good business performance in the year to date and the assumptions for the remainder of the year, the Management Board of Henkel AG & Co. KGaA today decided to raise the outlook for the current financial year, which was published at the beginning of March.

At the Annual General Meeting of Henkel AG & Co. KGaA on April 22, 2024, the shareholders approved all agenda items. A total of about 90 percent of the voting capital stock was represented. As in the previous year, the Annual General Meeting was again held as an in- attendance event at the CCD-Stadthalle in Düsseldorf.

• Strong business performance in 2023
  • Sales: 21.5 billion euros, very strong organic growth of 4.2 percent
  • Operating profit ‏(EBIT)*: 2.6 billion euros, significant increase of 10.2 percent
  • EBIT margin*: 11.9 percent, strong improvement by 150 basis points
  • Earnings per preferred share ‏(EPS)* significantly higher: 4.35 euros, +20.0 percent at constant exchange rates
  • Free cash flow at a new high of 2.6 billion euros
• Stable dividend proposed: 1.85 euros per preferred share
• Implementation of Purposeful Growth Agenda further accelerated
  • Consumer Brands: Merger progressing faster than planned
  • Adhesive Technologies: New organization even more customer-focused
  • Both business units strengthened with targeted acquisitions
  • Sustainability driven forward in key areas
• Outlook for fiscal 2024 – focus on profitable growth
  • Organic sales growth: 2.0 to 4.0 percent
  • EBIT margin*: 12.0 to 13.5 percent
  • Earnings per preferred share ‏(EPS)*: Increase of +5 to +20 percent ‏(at constant exchange rates)

• Climate action:
  • reduction of CO₂ emissions in production by 61 percent
  • share of purchased electricity from renewable sources increased to 89 percent
• Circular economy: share of recycled plastic increased to 19 percent worldwide
• Natural Resources: 10th anniversary of collaboration with Solidaridad for sustainable palm ‏(kernel) oil
• Gender parity ambition: gender-neutral parental leave guideline introduced
• Sustainable solutions: product portfolio further developed
• Employee engagement: “Sustainability at Heart” program extended

• Further expansion of growth platform for maintenance, repair and overhaul ‏(MRO) solutions with highly attractive adjacent business
• Strengthen global position and expand offering in sustainability-driven, future-oriented growing and profitable markets
• Access to certified protective coating technologies and complementary applicator network for retrofitting, smart maintenance, and civil infrastructure