Thursday, May 4, 2023
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In the first quarter of 2023, Henkel increased Group sales to around 5.6 billion euros. The very strong organic sales growth of 6.6 percent was driven by double-digit pricing, while volumes were below the prior-year level. In nominal terms, sales increased by 6.4 percent.
“We had a good start to the year – despite a continuously challenging market environment. The very strong sales increase in both business units underlines the strength of our portfolio of successful brands and innovative technologies. In the first quarter, we continued our pricing measures to further compensate for the headwinds from raw material and logistics costs,” said Henkel CEO Carsten Knobel. “Today we affirmed our guidance for 2023 and, based on the very strong organic sales development in the first quarter, we are looking at the current fiscal year with confidence.”
The very strong organic sales increase of the Adhesive Technologies business unit in the first quarter was driven by all business areas. The new business unit Consumer Brands likewise achieved very strong organic sales growth, with all business areas contributing.
“We also pushed ahead with our strategic priorities and have made important progress. For example, we are rigorously driving integration and portfolio focus in our Consumer Brands business unit, we are aligning the organizational structure of our Adhesive Technologies business unit even more closely to our customer base, and we have successfully launched relevant innovations in both businesses,” explained Carsten Knobel.
As part of its capital allocation strategy, Henkel had launched a share buyback program for the first time ever in 2022. The program was successfully completed in the first quarter of 2023: By the end of March, the company had repurchased shares with a total value of around 1 billion euros.
On April 20, 2023, Henkel announced the signing of an agreement on the sale of its business activities in Russia to a consortium of local financial investors. Henkel had announced its decision to exit its business activities in Russia last year, following the country’s attack on Ukraine. The transaction has meanwhile been completed; the sale price amounts to 54 billion rubles (around 600 million euros).
In the first quarter of 2023, sales in the Adhesive Technologies business unit increased nominally by 6.1 percent, from 2,631 million euros in the prior-year quarter to 2,791 million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), we increased sales by 6.8 percent compared to the first quarter of 2022. We achieved price increases in the double-digit percentage range, while volumes were below the prior-year quarter. Foreign exchange effects increased sales by 1.1 percent; acquisitions/divestments had a negative effect of -1.8 percent.
Tags: Adhesive, Henkel, sales record, wood, wood and panel, woodworking and manufacturing, woodworking and processing, woodworking industry, woodworking UK
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