Henkel Sales Reaches €10.9Bn in H1 with Asia-Pacific Down 2.7% for Challenging Business in China
- Chaileedo Press
- Aug 10, 2023
- 2 min read
Henkel is said to have raised its full-year sales forecast for 2023, with the Consumer Brands business unit targeting growth of 3% to 5%.
Henkel, a global leader in the consumer goods industry, displayed strong performance in the first half of 2023, despite challenging economic conditions. The company achieved significant growth in both business units, with organic sales increasing by 4.9%, reaching approximately 10.9 billion euros ($12 billion). The nominal growth was 0.1 percent. Henkel's CEO, Carsten Knobel, expressed confidence in the company's performance for the rest of the year and raised the full-year sales and earnings guidance.
Regional performance varied across different markets. In Europe, organic sales growth reached 2.4 percent, with a slight acceleration to 0.8% in the second quarter. The IMEA region (India, Middle East, and Africa) witnessed remarkable sales growth, with organic growth of 25.7%, driven by an impressive second-quarter growth rate of 23.6%. North America experienced organic sales growth of 3.8%, with a second-quarter growth rate of 0.9%. Latin America recorded significant organic sales growth of 13.2%, with a second-quarter growth rate of 9.4%. However, the Asia-Pacific region faced challenges, resulting in a negative organic sales development of -2.7%, primarily due to market difficulties in China.
The Consumer Brands business unit generated sales of 5,365 million euros in the first half of 2023, representing a nominal growth of 0.6%. Organically, the unit achieved sales growth of 5.7%, driven by pricing adjustments. However, volumes declined, partly due to ongoing portfolio optimization measures. Within the Consumer Brands business unit, the Laundry & Home Care business area exhibited very strong organic sales growth of 5.3%. The Hair business achieved an overall organic sales increase of 7.9%, while the Other Consumer Businesses saw a flat sales development.
Henkel remained committed to executing its growth agenda during the first half of 2023. The integration of the former Laundry & Home Care and Beauty Care businesses into the Consumer Brands business unit progressed at an accelerated pace. The company achieved additional savings and aims to realize net savings of at least 400 million euros ($440 million) by the end of 2026. Henkel also focused on streamlining its Consumer Brands portfolio, divesting or discontinuing brands and activities with total sales of approximately 0.5 billion euros ($550 million). Furthermore, Henkel expanded its portfolio with the acquisition of Earthwise, a Laundry & Home Care brand in New Zealand. The integration of Shiseido's Hair Professional business in Asia-Pacific, acquired by Henkel in the previous year, proceeded smoothly and delivered strong performance.
The company's outlook for fiscal 2023 has been revised upwards across all key metrics. Henkel now expects organic sales growth of 2.5 to 4.5% for the Group, compared to the previous range of 1.0 to 3.0%. The Adhesive Technologies business unit is projected to achieve growth between 2.0 and 4.0%, while the Consumer Brands business unit aims for growth between 3.0 and 5.0%. This revised outlook reflects the company's strong performance in the first half of the year.
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