Henkel Strengthens Portfolio Through Acquisitions

Henkel Strengthens Portfolio Through Acquisitions Henkel, which acquired the professional business unit of the Shiseido brand in the Asia-Pacific region, made advances in innovation during 2021. Henkel also completed an investment worth 130 million euros, opening a new global innovation center for Adhesive Technologies in Düsseldorf. In the 2021 fiscal year, Henkel recorded organic sales growth of 7.8 percent compared to 2020, reaching approximately EUR 20.1 billion in organic sales. Significant improvement in demand for industrial business and the Professional business unit had a highly positive impact on growth. Adjusted operating profit increased by 4.2 percent to EUR 2.7 billion. Adjusted sales earnings were observed at the same level as the corresponding period of the previous year at 13.4 percent, while earnings per preferred share rose to EUR 4.56. This corresponds to significant progress of 9.2 percent on a free-rate basis. Carsten Knobel: "We are steadily advancing our strategic agenda and have achieved very good progress in many important areas. On the other hand, we need to act more effectively in some areas. For this reason, we are taking our 'Purpose-Driven Growth' agenda to the next level: at the end of January, we announced that we would combine our Laundry & Home Care and Beauty Care business units as a new business unit under 'Henkel Consumer Brands.' In this way, we are creating a multi-category single platform with approximately EUR 10 billion in sales capacity. This provides us with a broader foundation to consistently optimize our portfolio in pursuit of a higher growth and profit margin profile. This is also reflected in our medium and long-term financial targets. In addition, the new Venture Fund II with a volume of EUR 150 million and the '2030+ Sustainability Target Framework' provide significant impetus in the areas of innovation and sustainability. Our new transparent and dynamic corporate brand image gives us strength on the path to our goals," he said.  

Group Sales and Profit Performance in Fiscal Year 2021

Henkel's sales at the group level in fiscal year 2021 reached EUR 20.066 billion. This corresponds to nominal growth of 4.2 percent and significant organic sales growth of 7.8 percent. The impact of acquisitions and disposals on sales was slightly negative at -0.1 percent. Currency effects negatively impacted sales by -3.5 percent.

Henkel Acquires Professional Business Unit of Shiseido Brand

Henkel further strengthened its Professional business unit portfolio by acquiring the professional business unit of the Shiseido brand in the Asia-Pacific region at the beginning of February 2022. This acquisition includes premium products from Shiseido's professional business unit, which generated sales exceeding EUR 100 million in fiscal year 2021. Henkel is expanding its Professional business unit in the Asia-Pacific region, positioning itself as one of the leading companies in this dynamic region with attractive growth potential. To strengthen competitive advantage, Henkel focused on accelerating innovation, increasing sustainability as a differentiating factor, and creating greater value for customers and consumers through digitalization.

Henkel's New Global Innovation Center in Düsseldorf

Henkel made further progress in successful innovation during fiscal year 2021. In this area, idea factories and business development teams established in the Beauty Care and Laundry & Home Care business units in the previous year also contributed. In Adhesive Technologies, a new global innovation center was opened in Düsseldorf with an investment of approximately EUR 130 million. Construction has begun on another state-of-the-art innovation center to be opened in Shanghai within Adhesive Technologies. During fiscal year 2021, Henkel successfully launched numerous innovations and strongly supported them with investments. For example, in Adhesive Technologies, Henkel developed and implemented solutions that provide support in thermal management through sustainable adhesive technologies for the automotive sector. At the same time, innovative adhesives contribute to the development of sustainable packaging solutions. In Beauty Care, Henkel conducted a comprehensive relaunch of the hair styling brand Taft and hair coloring brand Igora Royal. At the same time, successful innovations were implemented in the 'Hair Care' segment. Additionally, the product range of Nature Box, a sustainable brand, was expanded with more products offered in solid form and refillable packaging. In Laundry & Home Care, laundry capsules were strengthened with innovations offered under different brands covering all price segments, including the Perwoll brand. Henkel also launched the sustainable Persil Eco Power Bars product in retail stores in some European countries. The dishwasher capsule "Somat Excellence" is among innovations in the cleaning agents sector. With the goal of investing in innovative and new business models, Henkel launched Venture Fund II with a volume of EUR 150 million by participating in start-ups or venture capital funds.