Henkel witnesses growth in the first half of 2023

 Thursday, August 10, 2023

Henkel moves forward with a significant increase in sales and earnings in the first half of 2023, even in this consistently changing economic environment. Some of the notable raises are as follows-

• Group sales grows organically by 4.9 percent in the first half of the year to around 10.9 billion euros (nominal 0.1 percent) – very strong growth in both business units
• Operating profit (EBIT)* rises significantly to 1,254 million euros (+7.6 percent)
• EBIT margin* with strong increase to 11.5 percent (+80 basis points)
• Earnings per preferred share (EPS)* increase to 2.13 euros, double-digit growth of +14.4 percent at constant exchange rates
• Implementation of strategic growth agenda consistently driven forward
• Sales and earnings guidance for fiscal year 2023 raised:
Organic sales growth: to 2.5 to 4.5 percent
Return on sales (EBIT margin): to 11.0 to 12.5 percent . Earnings per preferred share (EPS): increase in the range of +5 to +20 percent at constant exchange rates

Pointing out the company’s growth agendas, Henkel CEO Carsten Knobel said, “We also made good progress in implementing our strategic growth agenda in the first six months of the year. In the Consumer Brands business unit, we are advancing the integration faster than planned. At the same time, we are consistently sharpening our portfolio towards high-margin and high-growth brands and products. This is also reflected in the earnings of the business unit. In the Adhesive Technologies business unit, we have aligned the organizational structure even more closely to our customers to expand our leading global position and further increase growth momentum. In addition, we are driving forward important initiatives in the areas of sustainability and digitalization to further enhance our competitive position.”

To further strengthen its growth and maintain its position Henkel focuses on strong innovations and attractive business areas. These continuously contributed to growth in both business units in the first half of 2023. In Adhesive Technologies, for example, Henkel’s innovative solutions used in the production of electric vehicles recorded an organic sales increase of around 70 percent in the first six months of the year compared to the prior-year period. In the Consumer Brands business unit, the Persil brand achieved double-digit organic sales growth, supported by a re-launch with a unique new enzyme technology which was rolled out across 30 countries.

Henkel also made progressive developments in the area of sustainability. For the purpose of achieving climate-positive carbon footprints for its production sited by 2023, Henkel converted ten additional sites to CO2-neutral production in the first half of 2023. The company has also taken up initiatives to bring in new improvisation in the area of digitalization. It has even propagated the crucial usage of artificial intelligence.

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