Henkel achieves strong organic sales growth and profitability in 2024

Henkel achieved strong organic sales growth in the first half of 2024 and significantly increased profitability amid persistent challenging economic conditions. The company thus successfully continued its profitable growth trajectory. In the first half of 2024, Henkel reached Group sales of EUR 10.813 billion.

"Overall, we delivered very good business performance in the first half of the year. This demonstrates that we are on the right track with our strategy and that our focus on purposeful growth is delivering concrete results," said Carsten Knobel, CEO of Henkel, continuing: "Following strong business performance in the first half, we are confident for the remainder of the year and therefore raised our profitability forecast for the 2024 financial year in mid-July." 

Adjusted operating profit (adjusted VFÖK) rose significantly by 28.4 percent to EUR 1.610 billion from EUR 1.254 billion in the first half of 2023, as a result in particular of strong growth in gross profit margin.

Earnings per preferred share showed significant growth, reaching EUR 2.46 (prior year: EUR 1.35). Earnings per preferred share rose to EUR 2.78, growing by 30.5 percent compared to the prior year value of EUR 2.13. This significant increase was driven in particular by the increase in adjusted operating profit. At constant exchange rates, earnings per preferred share showed a clear double-digit increase of 32.9 percent.

Free cash flow reached EUR 772 million and thus was achieved at a higher level than in the first half of 2023 (EUR 749 million). This was due mainly to higher cash flow from operating activities.

Outlook for 2024 Financial Year

The outlook updated on 3 May 2024 for the current financial year was raised on 17 July with respect to profitability expectations. The main reasons are higher profit expectations in the Consumer Brands business unit and the company's increased investment in marketing to support innovations. Henkel continues to expect organic sales growth at Group level in the range of 2.5 to 4.5 percent for the 2024 financial year.

Growth Agenda Implementation Continuing Steadily

To further strengthen competitiveness, Henkel is focusing on strong innovations in attractive business areas. In Adhesive Technologies, Henkel is serving the trend toward more integrated automotive components that drive demand for innovative adhesive solutions. One example is the integration of electronic components that provide high benefits for automobiles independent of power transmission systems. Henkel is among the pioneers collaborating with leading OEMs (original equipment manufacturers) and major suppliers who recognize this trend early and aim to develop innovative solutions. Over the coming years, market growth potential exceeding 20 percent is expected for such integrated components. In the Consumer Brands business unit, particularly strong organic sales growth exceeding 7 percent in the hair care business area came from the Schwarzkopf umbrella brand (in both Consumer Products and Professional business areas). This business area recorded positive volume development for four consecutive quarters. At the same time, market share in both hair styling and hair coloring increased by 40 basis points. Additionally, the relaunch of Gliss with new formulas for 100 percent stronger hair resulted in double-digit organic sales growth for the brand in the first half of the year.