Henkel Reports Sales of EUR 5.2 Billion in First Quarter of 2025

Henkel achieved consolidated sales of approximately EUR 5.2 billion in the first quarter of 2025. However, Adhesive Technologies sales showed organic growth, supported by a balanced price and volume structure. As expected, Consumer Brands sales fell short of the prior year due to strong base effects and supply chain challenges.

On this matter, Henkel CEO Carsten Knobel stated: "As we noted when we presented our figures for the full year 2024 in March, the new fiscal year started with relatively flat sales. At the same time, we continued to achieve strong gross margins and adjusted EBIT margins. We also continued to work consistently and successfully in advancing our strategic growth agenda.

By completing the sale of the Retail Brands business in North America ahead of schedule, we have successfully completed the portfolio optimization program for our Consumer Brands division that we announced in early 2022. This means we can now focus all our attention on growing our innovative branded consumer products business supported by technologies that deliver significant added value to consumers," he added: "In 2025, we continue to expect gradual organic sales growth and margin improvement. In the second half of the year, we expect stronger performance, driven by our continued investments in our brands and the innovations we will bring to market."

Adhesive Technologies Sales Performance
The performance of the Adhesive Technologies business unit varied generally from region to region. In Europe, sales declined organically compared to the same quarter of the prior year, particularly due to impacts in the Woodworking, Construction and Professional business area. The North America region, where market conditions generally remained challenging in the first quarter, saw sales declines, particularly due to developments in the Mobility and Electronics and Packaging and Consumer Products business areas.

The IMEA region recorded very strong organic sales growth, particularly driven by double-digit organic growth in sales in the Woodworking, Construction and Professional business area. Similarly, the Latin America region showed very strong growth, driven particularly by double-digit sales increases in the Mobility and Electronics business area. The Packaging and Consumer Products as well as Woodworking, Construction and Professional business areas, which both saw very strong growth, contributed to this development. The Asia-Pacific region demonstrated significant growth, particularly thanks to double-digit increases in sales in the Electronics business in China.

Consumer Brands Sales Performance
In the first quarter, in the Laundry and Home Care business area, the Laundry Care business recorded negative change due to declines in the Fabric Cleaning category, while the Fine Care category showed very strong growth. Meanwhile, the Home Care business area achieved strong organic sales growth, particularly driven by significant sales increases in the Dishwashing category. In Hair Care, Consumer Products showed positive growth, particularly driven by Hair Colorants and Hair Styling categories.

Henkel Group Outlook
Henkel continues to expect organic sales growth in the range of 1.5 to 3.5 percent for the current year. For the Adhesive Technologies business unit, organic sales growth is expected to be in the range of 2.0 to 4.0 percent. For Consumer Brands, organic sales growth of between 1.0 and 3.0 percent is expected.

Adjusted operating profit (adjusted EBIT margin) is expected to be in the range of 14.0 to 15.5 percent. Adjusted operating profit is expected to be in the range of 16.0 to 17.5 percent in Adhesive Technologies and 13.5 to 15.0 percent in Consumer Brands.