Henkel records strong organic sales growth in the third quarter
Published on : Tuesday, November 10, 2020
In the third quarter of fiscal year 2020, Henkel achieved strong organic growth of 3.9 percent – despite the continued difficult economic conditions as a result of the COVID-19 pandemic. The consolidated sales reached about 5 billion euros, equivalent to a nominal change of -1.5 percent. At the beginning of October, Henkel published its sales development in the third quarter based on preliminary figures and presented a new annual forecast for fiscal 2020.
“The effects of the global corona crisis continue to shape the market environment. Nevertheless, Henkel achieved good business development in the third quarter, which was supported by all three corporate divisions. This is proof of our robust, diversified portfolio with successful brands and innovative technologies for our customers in the industrial and consumer goods business. In addition, our additional investments in marketing, innovations and digitization are noticeable. In the third quarter, we were also able to significantly expand our digital sales and increase their share of total sales to over 15 percent, ”said Carsten Knobel, CEO of Henkel.
In this challenging market environment, Henkel performed well in the third quarter. The Adhesive Technologies business unit recorded a recovery in demand across all business areas compared to the second quarter and overall achieved positive organic sales growth compared to the same quarter of the previous year. In the area of beauty carethe hairdressing business also showed a recovery compared to the second quarter, but compared to the same period of the previous year the organic sales development in this business area was slightly down. In contrast, the retail business achieved very strong organic sales growth compared to the third quarter of 2019. Thanks to sustained strong demand for laundry and cleaning products as well as catch-up effects from the second quarter, the Laundry & Home Care business unit was able to significantly increase its organic sales and thus continue its successful development .
The individual business areas of the Adhesive Technologies business sector recorded different developments in the third quarter . Scored from a regional perspective Adhesive Technologies in the growth markets of a very strong organic sales growth. In the Latin America and Eastern Europe regions, sales grew by a double-digit percentage, while the Africa / Middle East region recorded a significant increase in sales. In particular, the Packaging & Consumer Goods and Crafts, Construction & Trade divisions contributed to this development. In the Asia region (excluding Japan), sales development remained stable overall. The very strong growth in China was unable to compensate for the downward trend in the other countries in the region.