Düsseldorf – In the first half of 2022, Henkel increased Group sales to around 10.9 billion euros. This corresponds to significant organic sales growth of +8.9 percent. This positive development was driven by all business units and regions.
As expected, the earnings in the first half of the year were impacted by the drastic rise in material and logistics prices. Despite significant price increases, strict cost management and further efficiency improvements these effects could not fully be compensated.
“In a very challenging environment, sales performance in the first six months exceeded the previous expectations for the full year, while earnings developed in line with our Group guidance for fiscal 2022. In view of this development, we have raised our full-year guidance for organic sales growth for the Group and confirmed our guidance for the EBIT margin and earnings per preferred share”, said Henkel CEO
Outlook for fiscal 2022 updated
Henkel now expects organic sales growth of +4.5 to +6.5 percent in fiscal 2022 (previously: +3.5 to +5.5 percent). Organic sales growth of +8.0 to +10.0 percent is still expected for the Adhesive Technologies business unit. For Beauty Care, Henkel now anticipates organic sales growth of -3.0 to -1.0 percent (previously: -5.0 to -3.0 percent).
For the Laundry & Home Care business unit, Henkel now expects organic sales growth of +4.0 to +6.0 percent (previously: +2.0 to +4.0 percent). Adjusted EBIT margin at Group level is expected to remain unchanged in the range of 9.0 to 11.0 percent. For the development of adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel continues to expect a decline in the range of -35 to -15 percent.
Exit of operations in Russia and Belarus in execution
In April 2022, Henkel decided to exit its business activities in Russia and Belarus. Henkel is thoroughly assessing all options and intends to have completed the process by the end of the year.
Sales growth in the first half of the year was mainly driven by the Adhesive Technologies business unit, which achieved a double-digit organic increase of +12.2 percent. Here, all business areas achieved organic sales growth. The Beauty Care business unit recorded organic sales growth of +0.4 percent in the first half of the year. The Hair Salon business achieved double-digit organic sales growth. By contrast, the consumer business was below the level of the previous year, mainly as a result of the measures announced to improve the portfolio.
The Laundry & Home Care business unit achieved a significant organic sales increase of +7.4 percent, driven in particular by double-digit growth in the Laundry business. The Home Care business recorded positive organic sales development in the first half of the year.
In the emerging markets, organic sales grew at a double-digit rate of +12.9 percent (Q2: +14.6 percent). Business in the mature markets showed a very strong organic sales performance of +5.5 percent (Q2: +7.8 percent).
To read the full press release, visit: Henkel significantly increases sales, drives strategic agenda and raises sales guidance for 2022