Wood & Panel

Henkel delivers very strong performance in the first half year

 Thursday, August 12, 2021

Henkel once again accelerated growth in the course of the first half year and witnessed a strong start to fiscal year 2021. Despite the impacts of the global coronavirus crisis that continue to adversely affect the social and economic environment in numerous markets around the world, Henkel achieved significant sales and earnings growth in the first half of the year. Organic sales growth reached 11.3 percent in the first six months of 2021. Group sales amounted to around 10 billion euros, an increase of 4.7 percent in nominal terms.

Adjusted operating profit grew by 20.1 percent to 1,430 million euros and the adjusted EBIT margin recorded an increase of 1.9 percentage points and reached 14.4 percent, an increase of 1.9 percentage points compared to the prior-year period. At constant exchange rates, adjusted earnings per preferred share increased by 30.1 percent. The effects of higher raw material costs in the first half of the year were offset in particular by very strong volume growth as well as price increases and by strict cost management and efficiency improvements.

“In the first half of 2021, Henkel continued to be affected by the COVID-19 pandemic. Nevertheless, we achieved double-digit growth in sales and earnings. In terms of sales, we have already been able to exceed the pre-crisis level of 2019 adjusted for currency effects. Mainly thanks to the outstanding team spirit and commitment of our employees around the world, as well as our balanced and robust portfolio of successful brands and innovative technologies in the consumer and industrial businesses,” said Henkel CEO Carsten Knobel.

All business units and regions contributed to organic sales growth in the first half of 2021. The Adhesive Technologies business unit achieved the strongest sales growth in the first half of the year. The business unit increased sales organically across all regions and business areas and overall achieved double-digit growth. This development was supported by the significant recovery of the global economy. But also in Beauty Care and Laundry & Home Care, Henkel achieved organic sales growth. The picture, however, was mixed with regard to the individual business areas. In the Beauty Care business unit, growth was driven by the Professional business. After weaker growth in the previous year due to the pandemic, growth well into the double digits was achieved. The Consumer Goods business, on the other hand, was below the level of the prior-year period in the first half of 2021, due to a decline in organic sales in the body care category, also as a consequence of significant weakening markets. In the Laundry & Home Care business unit, the growth was mainly driven by the Home Care business, which achieved significant organic sales growth. The Laundry Care business recorded good organic sales growth.

“We continued to make good progress in implementing our strategic growth agenda in the first half of the year. As part of our active portfolio management, further brands and businesses were divested or discontinued as planned. At the same time, we made targeted acquisitions, in particular to expand our sustainable brands portfolio. Our special focus this year is on further strengthening our competitiveness in the areas of innovation, sustainability, and digitalization, and on further developing our company culture. We progressed very well in these areas in the first half of the year and believe we are well on track in implementing our purposeful growth agenda,” added Carsten Knobel.

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