Henkel Targets Strong Organic Growth in 2025

Henkel achieved strong organic growth in sales during 2024 and significantly increased profitability. Preferred earnings per share rose by a notable 25%. Henkel Group's sales in the 2024 financial year reached EUR 21.586 billion, representing a nominal increase of 0.3% compared to the previous year.

Henkel CEO Carsten Knobel said: "In 2024, we achieved strong organic growth in sales and significantly increased profitability. Preferred earnings per share rose by a notable 25%. Our products gaining value as intended for customers and consumers was the key driver of our earnings improvement. At the same time, it was crucial that we continued to invest in our operations and future growth through accelerating marketing activities in the consumer products sector and successful innovations across both business units. We want our shareholders to participate in the company's successful development. For this reason, we will propose a double-digit increase in dividends at the Annual General Meeting. Additionally, we decided on a new share buyback program of up to EUR 1 billion."

Outlook for 2025
Following the moderate growth increase achieved in 2024, global economic growth is expected to remain moderate in 2025. This suggests that for Henkel, both industrial and consumer demand will increase at a moderate level in important areas of consumer products. Additionally, global inflation is expected to continue declining in the 2025 financial year compared to previous years, and interest rates are also expected to fall.

Regarding raw material prices, Henkel expects a low to mid single-digit percentage increase compared to the annual average of 2024. Against this backdrop, Henkel expects organic growth in sales of between 1.5% and 3.5% in the 2025 financial year.

Group Sales and Profit Performance in the 2024 Financial Year
Henkel Group's sales in the 2024 financial year reached EUR 21.586 billion, representing a nominal increase of 0.3% compared to the previous year. Sales growth adjusted for currency effects was 2.1%. Organic sales growth, that is growth adjusted for exchange rates and acquisitions/divestitures, showed strong development of 2.6%. This development resulted from positive momentum in both pricing and volume.

Henkel also advanced its progress in digitalization. In 2024, rapid developments in Artificial Intelligence (AI) were at the center of attention. AI has long been an integral part of Henkel's digital strategy. For example, AI technology is being used in process automation, in adhesive development laboratories, in interconnected global production facilities in virtual environments, in autonomous robots at production sites, and for chatbots on Henkel's brand websites.

In 2024, the digital unit Henkel dx further optimized its internal structures, strengthened its digital expertise, and promoted an open innovation culture. Henkel also benefited from strategic partnerships with globally leading digital companies such as SAP, Microsoft, and Adobe. These partnerships enable Henkel to integrate the latest technologies into its own digital platforms and projects. By accelerating digital innovations, developing its platform strategy, and increasing collaboration across all business units and functions, Henkel notably increased IT efficiency.

One of Henkel's objectives is to achieve gender equality at all management levels by the end of 2025. Today, women hold approximately 42% of management positions worldwide at Henkel.

Carsten Knobel summarized his thoughts as follows: "The 2024 financial year was a very successful and important period for Henkel. We achieved our financial targets, which we raised twice during the year. We consistently implemented our 'purpose-driven growth agenda' across all strategic areas and pursued our transformation process with determination and success. We are making progress toward our targets, and our company's transformation is delivering tangible results. With a clear strategy, a strong team, and a unique corporate culture, we are prepared for the future."