Wednesday, November 9, 2022
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Henkel accomplished group sales of about 6 billion euros in the third quarter of the fiscal 2022 while successfully maintaining its growth momentum. This equals an all-time new quarterly high for sales and double-digit organic growth of +11.3 percent, driven by double-digit pricing developments in all business divisions and throughout all regions. Due to the consumer companies, volumes were largely down compared to last year. Sales increased by +17.3% in nominal terms. The Adhesive Technology business segment was primarily responsible for Henkel’s third quarter double-digit revenue increase. Significant or double-digit organic sales growth was reported across all business sectors.
Expected organic sales growth of +7.0 to +8.0 percent
Adhesive Technologies business unit predominantly owe the credit for such successful sales growth in the third quarter. What is truly applaudable is how Henkel continued to maintain their strategic execution to achieve the targeted double-digit sales growth, even amidst extraordinarily volatile market conditions, according to Henkel CEO Cartsen Knobel. All business areas recorded significant or double-digit organic sales increases. Even after implementing the announced portfolio changes into practice, the Beauty Care business unit saw positive organic sales growth in the third quarter. The business sectors of Professional and Consumer both contributed to this performance. Laundry Care business area was the primary driver of the Laundry & Home Care business unit’s considerable organic sales growth. Sales rose organically in all regions during the third quarter in terms of geography. Emerging markets, where all regions displayed double-digit organic growth rates, were primarily responsible for the Group’s robust sales performance.
“The double-digit sales growth in the third quarter is further proof of the strength of our robust and balanced portfolio of successful brands and innovative technologies. In addition, we have consistently driven forward the implementation of our portfolio optimization measures, continued our strict cost management and worked on further efficiency improvements. Moreover, as we merge our two consumer businesses, we are ahead of our planned schedule in implementing the new structures. This strong performance is the achievement of our global team whose outstanding commitment is critical to the long-term success of Henkel in these challenging times,” Knobel adds.
At Group level, Henkel now expects organic sales growth of +7.0 to +8.0 percent (previously: +5.5 to +7.5 percent) and adjusted return on sales (EBIT margin) in the range of 10.0 and 11.0 percent (previously: 9.0 and 11.0 percent). For adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel now expects a decline in the range of -25 to -15 percent (previously: -35 and -15 percent).
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Tags: Adhesive technology, Cartsen Knobel, Henkel, woodworking, woodworking and manufacturing, woodworking Europe, woodworking event, woodworking industry, woodworking UK
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