Henkel delivered a notable improvement in profitability in the first half of 2025, supported by stronger second-quarter sales momentum. The Group recorded sales of 10.4 billion euros, in organic terms almost matching the prior-year level at -0.1 percent, with Q2 showing a 0.9 percent increase.
Operating profit (EBIT) rose slightly to 1,614 million euros, up 0.2 percent. The EBIT margin climbed to 15.5 percent, a 60-basis-point increase. Adjusted earnings per preferred share (EPS) advanced to 2.81 euros, up 5.0 percent at constant exchange rates.
CEO Highlights Balanced Performance
“The improvement in organic sales growth was driven by both business units, with the sequential increase in volume development in Consumer Brands particularly standing out. Along with a positive price development, this led to positive organic sales growth in the second quarter. The Adhesive Technologies business unit achieved positive organic sales growth in the first six months, driven by a balanced development in price and volume,” said Henkel CEO Carsten Knobel.
Knobel added: “In addition, we strongly increased our EBIT margin in the first half of the year. This growth was mainly driven by very strong gross margins in both business units and a favourable business mix. We also achieved further efficiency gains and are well on track to reach or even exceed the savings targeted in Consumer Brands. At the same time, we continued to invest in our brands and technologies to strengthen our future growth potential.”
Updated 2025 Outlook
Henkel now expects organic sales growth between 1.0 and 2.0 percent, down from the previous forecast of 1.5 to 3.5 percent. For Adhesive Technologies, growth is expected between 2.0 and 3.0 percent. Consumer Brands is forecast to grow by 0.5 to 1.5 percent.
The adjusted return on sales target is raised to 14.5–15.5 percent. Adhesive Technologies is expected to deliver 16.5–17.5 percent, and Consumer Brands 14.0–15.0 percent. EPS growth at constant exchange rates remains projected in the low to high single-digit range.
Knobel explained that the revised outlook factors in both the challenging macroeconomic backdrop and Henkel’s improved gross margins, portfolio optimisation, and efficiency gains.
Regional and Business Unit Trends
In H1 2025, Adhesive Technologies posted 1.2 percent organic sales growth, driven largely by the Mobility & Electronics segment. The Consumer Brands unit recorded an organic decline of -1.6 percent, although Q2 achieved a modest 0.4 percent growth.
Regionally, Europe and North America saw declines of -1.9 percent and -3.4 percent respectively. IMEA recorded 9.1 percent growth, Asia-Pacific 3.4 percent, and Latin America 0.4 percent.
Adhesive Technologies: Strong Niche Growth
Adhesive Technologies reported nominal sales of 5,416 million euros. Mobility & Electronics saw a 2.8 percent organic increase, powered by strong Electronics and Industrial segments. Packaging & Consumer Goods remained stable, and Construction grew 0.6 percent organically.
The adjusted EBIT margin rose to 17.2 percent, reflecting a favourable product mix despite slightly lower nominal EBIT.
Consumer Brands: Portfolio Focus Paying Off
Consumer Brands generated 4,907 million euros in sales, down -6.8 percent nominally. The Hair business achieved 0.9 percent organic growth, driven by Hair Colourants and Styling. Laundry & Home Care fell -2.6 percent, while Other Consumer Businesses dropped -4.2 percent.
The adjusted EBIT margin increased to 15.3 percent, supported by pricing, supply chain optimisation, and portfolio streamlining.
Driving the Purposeful Growth Agenda
Henkel advanced its Purposeful Growth Agenda, focusing on megatrends such as mobility, connectivity, sustainability, and digitalisation. Adhesive Technologies continued to support sustainable manufacturing, including launching a low-temperature, low-foam can cleaner that cuts energy use and reduces water consumption by up to 25 percent.
Consumer Brands intensified its focus on top-performing products, with its top 10 brands—now 60 percent of sales—posting over 3 percent organic growth in Q2. The roll-out of Creme Supreme, a pioneering hair colouration with bonding technology, supported category growth.
Positive Second-Half Outlook
Knobel concluded: “After a slow start to the 2025 fiscal year, we managed to achieve a significant improvement in sales in the second quarter – particularly with regard to our consumer business. At the same time, we have continued to strongly increase profitability in both business units. It clearly shows that Henkel’s transformation is already successful. We will continue to drive this change in order to be even better positioned and more competitive in the long term.”
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