Wednesday, March 2, 2022
Henkel announces powerful growth and ushers in confidence for success once again in the post pandemic situation. “Overall, we delivered a good business performance in 2021 and consistently drove the implementation of our strategic agenda forward – despite a very challenging market environment with unprecedented disruptions in global supply chains, a shortage of key raw materials as well as overall significantly increasing prices,” said Henkel CEO Carsten Knobel.
Henkel achieved organic sales of around 20.1 billion euros in fiscal 2021. This corresponds to an organic sales growth of 7.8 percent versus 2020. A significant recovery in demand in businesses had a particularly positive effect. In the consumer goods business, demand in many categories returned to more normal patterns compared to the previous year 2020, when demand was particularly strong for domestic products as well as hair colorants while demand for styling products was less strong. At the same time, the impact of significantly increasing raw material and logistics prices as well as currency effects weighed on profitability in fiscal 2021. Thanks to significantly higher sales volumes, successful price increases, active cost management and ongoing structural adjustments, Henkel was able to more than offset the impact on its earnings. Adjusted operating profit increased by 4.2 percent to 2.7 billion euros. The adjusted return on sales was at 13.4 percent on prior-year level and adjusted earnings per preferred share rose to 4.56 euros. This corresponds to a significant improvement of 9.2 percent at constant exchange rates.
Based on these results, Henkel will propose a stable dividend of 1.85 euros per preferred share and 1.83 euros per ordinary share to its shareholders at the upcoming Annual General Meeting. This equals a payout ratio of 40.5 percent, which is slightly above the target range of 30 to 40 percent of adjusted net income after non-controlling interests. The company has paid a stable dividend since the beginning of the COVID-19 pandemic.
Tags: 2021, Adhesive, Carsten Knobel, Financial Report, Henkel, UK, wood, wood and panel, wood industry, woodworking and manufacturing
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