Henkel Reported Sales Volumes Down 5.4% in Q1
- Chaileedo Press
- May 5, 2023
- 2 min read
Henkel released its 2023 Q1 results. The Düsseldorf-based consumer goods company reported 6.6% organic sales growth to €5.6 billion ($ 6.18 billion) in Q1. Henkel said the growth was driven by double-digit pricing, while volumes down 5.4% compared to 2022 Q1.
Henkel, the Düsseldorf-based consumer goods company released its 2023 Q1 results. The company reported 6.6% organic sales growth to €5.6 billion ($ 6.18 billion) in Q1. Henkel said the growth was driven by double-digit pricing, while volumes down 5.4% compared to 2022 Q1.
Henkel pointed out that the Q1 growth was driven by very strong sales increases in both business units. sales in the Adhesive Technologies business unit increased nominally by 6.1% to €2,791 million ($ 3079 million). With organic sales increased by 6.8%.
While in the Consumer Brands business unit, sales increased by 7.3 percent to € 2,772 million ($3058 million) in 2023 Q1. Organically sales were up 7%. Henkel said the business unit recorded a double-digit increase in prices, while volumes declined.
In terms of geographical region, European saw a 4.2% increase in organic sales growth. Organic sales in the IMEA region posted a significant rise of 27.8%. In North America, there was a 7.1% organic sales growth. Meanwhile, the Latin America region reported a 17.6% growth in organic sales. However, the Asia-Pacific region reported decline of 4.8%.
“We had a good start to the year – despite a continuously challenging market environment. The very strong sales increase in both business units underlines the strength of our portfolio of successful brands and innovative technologies. In the first quarter, we continued our pricing measures to further compensate for the headwinds from raw material and logistics costs,” said Henkel CEO Carsten Knobel. “Today we affirmed our guidance for 2023 and, based on the very strong organic sales development in the first quarter, we are looking at the current fiscal year with confidence.”
In addition, Henkel announcement that the company has completed its sell of Russia business unit. the sale price amounts to 54 billion rubles (around 600 million euros).
Henkel is maintaining its previous forecast for organic sales growth in 2023, which is expected to fall between 1% and 3%. The company anticipates that both of its business units will perform within this range. Additionally, Henkel has reaffirmed its expectation that its adjusted return on sales, also known as adjusted EBIT margin, will remain in the range of 10% to 12%.
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