Henkel posted strong performance in 2023

Henkel shared its 2023 financial results. According to the disclosed results, the company closed 2023 successfully with sales of EUR 21.514 billion for the fiscal year. Henkel released its 2023 financial report. According to the published report, the company achieved organic sales growth in 2023. With total sales of EUR 21.514 billion in 2023, the Adhesive Technologies business unit reached sales of EUR 10.790 billion. Based on these figures, Henkel's Adhesive Technologies business unit sales rose organically by 3.2 percent. Consumer Brands business unit sales amounted to a total of EUR 10.565 billion in the 2023 fiscal year, and sales increased organically by 6.1 percent. "We consistently advanced our growth strategy" Henkel CEO Carsten Knobel evaluated the results for 2023. Knobel stated: "Despite challenging market conditions, we consistently advanced our growth strategy in 2023 and accelerated its implementation. We achieved very strong organic sales growth and significantly increased profitability. As a result, we exceeded the guidance we provided at the beginning of the year. This successful development was realized jointly by Adhesive Technologies and Consumer Brands." In the Adhesive Technologies business unit, strong organic sales growth of 3.2 percent was achieved, driven by mobility and electronics business areas as well as hardware, construction, and professional business areas. In the Consumer Brands business unit, very strong organic sales growth of 6.1 percent was recorded, particularly driven by laundry and home care and hair care business areas. The company continued to develop steadily over the past fiscal year. Three major projects were successfully implemented in the past year, significantly advancing Henkel's transformation. These three projects were: the sale of operations in Russia, the merger of Laundry & Home Care with Beauty Care to create the new Consumer Brands business unit, and developments in the Adhesive Technologies business unit. Sale of Russian operations completed Henkel, which decided to exit its operations in Russia, sold its Russian business in 2023 to a consortium of local financial investors. The agreed purchase price was approximately EUR 600 million. Consumer Brands business unit established Another development advancing the company in 2023 was the establishment of the Consumer Brands business unit. Henkel merged Laundry & Home Care with Beauty Care to create the new Consumer Brands business unit. In doing so, the company brought together all consumer brands across categories under one roof, including iconic brands such as Persil and Schwarzkopf as well as the successful Professional business unit. Organizational changes made in Adhesive Technologies business unit In 2023, Henkel implemented changes in the senior management level of Adhesive Technologies. In the 2023 fiscal year, a more diverse international team was appointed to further strengthen and elevate the company's global market leader position. At the same time, the organizational structure of the business unit was optimized to increase its proximity to customers and markets. The new structure consists of three business areas: Mobility & Electronics, Packaging & Consumer Products, and Consumer & Hardware & Professional. Providing safety in next-generation autonomous vehicles In 2023, Henkel also introduced numerous innovations to the market. In Adhesive Technologies, Henkel presented a new solution for bonding camera lenses in driver assistance systems. This solution enables rapid and robust camera production in the automotive industry while providing greater safety in next-generation autonomous vehicles. Persil Deep Clean reaches consumers in more than 30 countries In Consumer Brands, Persil Deep Clean, offering a new formula with innovative enzyme technology, reached consumers in more than 30 countries. The product provides excellent stain removal while also preventing unpleasant odors in washing machines. Got2b hair styling portfolio now more environmentally friendly Henkel also updated its entire Got2b hair styling portfolio to be more environmentally friendly. The Got2b hair styling portfolio was relaunched with vegan formulas, natural ingredients, and more sustainable packaging. Moderate growth expected in 2024 Henkel expects moderate growth in 2024. The company aims to achieve organic sales growth between 2.0 and 4.0 percent in the 2024 fiscal year.