Henkel Continues to Grow During the Pandemic

Henkel Chief Executive Officer Carsten Knobel commented, "In the first half of 2020, our sales reached approximately EUR 9.5 billion, while our operating profit was EUR 1.2 billion. We demonstrated very strong free cash flow and advanced our net financial position. Due to the pandemic, we did not resort to short-time work options, did not seek government assistance, and did not reduce our workforce. In summary, even in an unprecedented challenging environment, we delivered overall strong performance." Knobel stated, "While managing the current situation, we remain fully committed to our ambitious growth program that will impact the coming years. We have initiated early measures in line with our new strategic framework and will continue to actively implement our targeted growth program."

Targeted Growth Agenda: Implementation of New Strategic Framework

Henkel announced the company's forward-looking growth agenda at the beginning of March 2020. Henkel developed a clear strategic framework. Carsten Knobel stated, "This strategic framework will help us win the 2020s for Henkel by clearly focusing on targeted growth." Acquisitions continue to be an integral part of Henkel's strategy. Recently, Henkel completed two acquisition transactions with a combined value of approximately EUR 500 million. Henkel expanded its digital direct-to-consumer activities in the Beauty Care business unit by acquiring a majority stake in a company that operates three rapidly growing distinguished beauty brands. In the Adhesive Technologies business unit, Henkel will expand its position in adhesives and sealant products for consumers and craftspeople in North America by acquiring a significant consumer sealant product portfolio marketed under the GE brand*. The acquired business focuses on a range of silicone sealant products for various applications. Henkel aims to accelerate strong innovation with increased investments. The company continued its investments in a state-of-the-art innovation center in Düsseldorf for the Adhesive Technologies business unit. In the Adhesive Technologies business unit, Henkel leveraged its broad industrial portfolio containing sealing and coating technology solutions to bring a new product range to market that will increase water resistance in premium smartphones. This work is the result of a collaboration with one of the world's largest smartphone brands.

Henkel Prioritized "Health First" During the Covid-19 Pandemic

As the Covid-19 pandemic affected all aspects of life and significantly impacted the global economy, Henkel's highest priority was the health and safety of its employees, customers, and business partners. The company implemented comprehensive preventive measures at an early stage. At the same time, it made considerable efforts to continue business operations and serve its customers and consumers worldwide. Additionally, Henkel launched a global solidarity program, including financial contributions to the Covid-19 Solidarity Response Fund implemented by the World Health Organization (WHO) and the United Nations (UN) Foundation, as well as to other specific organizations worldwide. Furthermore, Henkel donated over 5 million personal and household hygiene products and produced disinfectants at its own facilities. Henkel produced and donated more than 111,000 liters of disinfectant globally to support healthcare workers and hospitals. To date, Henkel has supported nearly 500 projects related to Covid-19 in 40 different countries and provided assistance to approximately 5 million people in need during the global Covid-19 pandemic.