Thursday, November 9, 2023
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In the third quarter of 2023, Henkel recorded Group sales of around 5.4 billion euros and achieved organic sales growth of 2.8 percent. This growth was driven by continued strong pricing in view of significantly higher raw material prices compared to the prior year. Volume development was negative but showed a noticeable improvement compared to the second quarter. Nominally, sales were -9.0 percent below the prior-year quarter, mainly due to the exit from the business activities in Russia in the second quarter and to negative foreign exchange effects.
“Despite a persistently challenging market environment, we successfully sustained our growth momentum in the third quarter, with both business units contributing. Based on this performance, we have today raised our outlook for the current fiscal year. Particularly for adjusted earnings per preferred share, we now expect a significant increase in the range of 15 to 25 percent at constant exchange rates“, said Henkel CEO Carsten Knobel.
“We have also strengthened our Adhesive Technologies portfolio with an attractive acquisition – which also reflects our more pronounced focus on growth through M&A. And we are clearly ahead of plan when it comes to the integration of our Consumer Brands business, which represents the biggest transformation of our company of the past decades.” He added further.
Despite demand remaining subdued in some end markets relevant to Henkel, the Adhesive Technologies business unit recorded positive organic sales growth in the third quarter, driven by the Mobility & Electronics and the Craftsmen, Construction & Professional business areas. The very strong organic sales growth in the Consumer Brands business unit, which has been operating in the new set-up since the beginning of the year, was driven by the global business areas Laundry & Home Care and Hair.
“In both business units, volume development clearly improved in the third quarter compared to the previous quarter – which confirms our expectation as stated when publishing our results for the first half year. And for the quarter ahead, we expect a further sequential improvement,” Knobel concluded.
In addition, Henkel continued to make good progress in the third quarter with the implementation of its strategic growth agenda. By acquiring Critica Infrastructure, Henkel has added an attractive adjacent business to the portfolio of its Adhesive Technologies business unit with the aim of creating a platform for further growth: Critica is a specialized supplier for innovative composite repair and reinforcement solutions used in a wide range of industrial applications.