04.05.2023 Henkel AG & Co. KGaA  DE0006048432

EQS-News: Henkel AG & Co. KGaA: Henkel delivers very strong organic sales growth in the first quarter


 

EQS-News: Henkel AG & Co. KGaA / Key word(s): Quarter Results/Quarterly / Interim Statement
Henkel AG & Co. KGaA: Henkel delivers very strong organic sales growth in the first quarter

04.05.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.


Good start to fiscal 2023

Henkel delivers very strong organic sales growth
in the first quarter

  • Group sales increase organically by 6.6 percent to around 5.6 billion euros;
    nominal 6.4 percent
  • Growth driven by very strong sales increases in both business units:
  • Adhesive Technologies with organic growth of 6.8 percent,
    nominal 6.1 percent
  • Consumer Brands achieves organic sales growth of 7.0 percent,
    nominal 7.3 percent
  • Exit from business activities in Russia completed
  • Further progress in implementing strategic growth agenda
  • Outlook for fiscal 2023 confirmed

 

Düsseldorf, May 4, 2023 – In the first quarter of 2023, Henkel increased Group sales to around 5.6 billion euros. The very strong organic sales growth of 6.6 percent was driven by double-digit pricing, while volumes were below the prior-year level. In nominal terms, sales increased by 6.4 percent.

“We had a good start to the year – despite a continuously challenging market environment. The very strong sales increase in both business units underlines the strength of our portfolio of successful brands and innovative technologies. In the first quarter, we continued our pricing measures to further compensate for the headwinds from raw material and logistics costs,” said Henkel CEO Carsten Knobel. “Today we affirmed our guidance for 2023 and, based on the very strong organic sales development in the first quarter, we are looking at the current fiscal year with confidence.”

 

The very strong organic sales increase of the Adhesive Technologies business unit in the first quarter was driven by all business areas. The new business unit Consumer Brands likewise achieved very strong organic sales growth, with all business areas contributing.

Sales performance by business unit
    Sales        
in million euros   Q1/2022   Q1/2023   +/-   Organic
Henkel Group   5,271   5,609   6.4%   6.6%
Adhesive Technologies   2,631   2,791   6.1%   6.8%
Consumer Brands1   2,584   2,772   7.3%   7.0%
 
1Pro forma values for prior-year figures, based on the aggregated results of the Beauty Care and Laundry & Home Care business units.

  

“We also pushed ahead with our strategic priorities and have made important progress. For example, we are rigorously driving integration and portfolio focus in our Consumer Brands business unit, we are aligning the organizational structure of our Adhesive Technologies business unit even more closely to our customer base, and we have successfully launched relevant innovations in both businesses,” explained Carsten Knobel.

As part of its capital allocation strategy, Henkel had launched a share buyback program for the first time ever in 2022. The program was successfully completed in the first quarter of 2023: By the end of March, the company had repurchased shares with a total value of around 1 billion euros.

On April 20, 2023, Henkel announced the signing of an agreement on the sale of its business activities in Russia to a consortium of local financial investors. Henkel had announced its decision to exit its business activities in Russia last year, following the country’s attack on Ukraine. The transaction has meanwhile been completed; the sale price amounts to 54 billion rubles (around 600 million euros).


Group sales performance

 

Group sales increased nominally by 6.4 percent in the first quarter of 2023, from 5,271 million euros in the prior-year quarter to 5,609 million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 6.6 percent. This very strong growth in sales at Group level was driven by price increases. Acquisitions/divestments
reduced sales by -1.1 percent. Foreign exchange effects had a slightly positive impact of 0.9 percent on sales.

Group sales performance        
in million euros   Q1/2022   Q1/2023
Sales   5,271   5,609
Change versus previous year   6.1%   6.4%
Foreign exchange1   0.2%   0.9%
Adjusted for foreign exchange   5.9%   5.5%
Acquisitions/divestments2   -1.1%   -1.1%
Organic   7.1%   6.6%
Of which price   9.4%   12.0%
Of which volume   -2.3%   -5.4%
 
1Including the effects of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Türkiye.
2Including organic sales development in Russia since the beginning of the second quarter 2022 against the background of the announced exit of the business activities there.

  

Organic sales growth in the Europe region was 4.2 percent in the first quarter. In the IMEA region, sales increased organically by 27.8 percent. We increased sales in the North America region organically by 7.1 percent. The Latin America region posted organic sales growth of 17.6 percent. Organic sales development in the Asia-Pacific region was -4.8 percent.

Sales performance by region1
in million euros   Europe   IMEA   North America   Latin America   Asia-
Pacific
  Corporate   Henkel Group
Sales² January–March 2023   2,201   563   1,584   411   805   46   5,609
Sales² January–March 2022   2,152   529   1,358   338   838   56   5,271
Change versus prior-year quarter   2.3%   6.5%   16.6%   21.5%   -4.0%     6.4%
Organic   4.2%   27.8%   7.1%   17.6%   -4.8%     6.6%
Proportion of
Group sales 2023
  39%   10%   28%   7%   14%   1%   100%
Proportion of
Group sales 2022
  41%   10%   26%   6%   16%   1%   100%
                             
1Prior-year figures for the Europe, IMEA and Asia-Pacific regions on pro forma basis due to amended regional reporting structure.
²By location of company.

   
 

Sales performance Adhesive Technologies

In the first quarter of 2023, sales in the Adhesive Technologies business unit increased nominally by 6.1 percent, from 2,631 million euros in the prior-year quarter to 2,791 million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), we increased sales by 6.8 percent compared to the first quarter of 2022. We achieved price increases in the double-digit percentage range, while volumes were below the prior-year quarter. Foreign exchange effects increased sales by 1.1 percent; acquisitions/divestments had a negative effect of -1.8 percent.

Sales performance Adhesive Technologies        
in million euros   Q1/2022   Q1/2023
Sales   2,631   2,791
Proportion of Group sales   50%   50%
Change versus previous year   11.6%   6.1%
Foreign exchange1   1.6%   1.1%
Adjusted for foreign exchange   10.0%   5.0%
Acquisitions/divestments2   -0.7%   -1.8%
Organic   10.7%   6.8%
Of which price   10.6%   11.4%
Of which volume   0.1%   -4.6%
 
1Including the effects of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Türkiye.
2Including organic sales development in Russia since the beginning of the second quarter 2022 against the background of the announced exit of the business activities there.

  

The very strong organic sales growth of the Adhesive Technologies business unit in the first quarter was driven by all business areas. The Mobility & Electronics business area achieved double-digit organic sales growth of 12.6 percent. This increase was driven by the Automotive and Industrial businesses, while the Electronics business posted a negative development due to a difficult market environment. The Packaging & Consumer Goods business area generated organic sales growth of 1.0 percent. Very strong sales growth in the Consumer Goods business more than offset the sales decline in the Packaging business. Sales in the Craftsmen, Construction & Professional business area grew organically by 7.0 percent compared to the prior-year quarter, with all businesses contributing.

Sales performance by business area1
    Sales        
in million euros   Q1/2022   Q1/2023   +/-   Organic
Adhesive Technologies   2,631   2,791   6.1%   6.8%
Mobility & Electronics   851   959   12.6%   12.6%
Packaging & Consumer Goods   893   884   -1.0%   1.0%
Craftsmen, Construction & Professional   887   948   6.9%   7.0%
 
1Pro forma figures for each business area against the background of the announced optimization of the organizational structure.

  

From a regional perspective, the Adhesive Technologies business unit generated significant organic sales growth in Europe. Here, the negative development in the Packaging & Consumer Goods business area was more than offset by growth in the Mobility & Electronics business area. North America also showed significant sales growth, driven by the Mobility & Electronics business area. Both IMEA and Latin America generated double-digit organic sales increases, driven in both regions by the Mobility & Electronics business area. By contrast, sales in the Asia-Pacific region were organically below the prior-year level. This was due in particular to the development in China arising from the overall difficult market environment that continued to prevail, even after the end of the COVID-19-related restrictions there, coupled with a market-related decline in the Electronics business.

Sales performance Consumer Brands

In the Consumer Brands business unit, sales increased nominally by 7.3 percent to 2,772 million euros in the first quarter of 2023. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales were up 7.0 percent compared to the prior-year level. Year on year, the business unit recorded a double-digit increase in prices, while volumes declined, due in part to the effects from portfolio optimization measures. Foreign exchange effects had a positive impact of 0.8 percent on sales. Acquisitions/divestments decreased sales by -0.5 percent.

Sales performance Consumer Brands1        
in million euros   Q1/2022   Q1/2023
Sales   2,584   2,772
Proportion of Group sales   49%   49%
Change versus previous year   0.1%   7.3%
Foreign exchange2   -1.1%   0.8%
Adjusted for foreign exchange   1.2%   6.5%
Acquisitions/divestments3   -1.5%   -0.5%
Organic   2.7%   7.0%
Of which price   8.3%   12.7%
Of which volume   -5.6%   -5.7%
 
1Pro forma values for prior-year figures, based on the aggregated results of the Beauty Care and Laundry & Home Care business units.
2Including the effects of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Türkiye.
3Including organic sales development in Russia since the beginning of the second quarter 2022 against the background of the announced exit of the business activities there.

    

In the first quarter, the Laundry & Home Care business area generated very strong organic sales growth of 6.3 percent. The Laundry Care business achieved a significant organic sales increase which was predominantly driven by significant sales growth in the Fabric Cleaning category and a double-digit increase in the Fabric Care category. Good growth in the Home Care business was primarily driven by a double-digit increase in sales in the Dishwashing category. Organic sales growth in the Hair business area, which includes the Professional business, was 9.9 percent. We generated double-digit growth in the Consumer business, driven in particular by the Hair Styling category. The Professional business achieved strong organic sales growth.

Sales performance by business area1
    Sales        
in million euros   Q1/2022   Q1/2023   +/-   Organic
Consumer Brands   2,584   2,772   7.3%   7.0%
Laundry & Home Care   1,692   1,789   5.8%   6.3%
Hair   711   811   14.7%   9.9%
Other Consumer Businesses   181   171   -7.4%   1.6%
 
1Pro forma values for prior-year figures, based on the aggregated results of the Beauty Care and Laundry & Home Care business units.

  

All regions served by the Consumer Brands business unit achieved organic sales increases in the first quarter. The Europe region recorded positive organic sales growth in the first quarter – mainly driven by the Hair business area, while sales in the Laundry & Home Care business area were below the prior-year quarter. The North America region generated very strong organic sales growth, with all business areas contributing. The IMEA and Latin America regions each generated double-digit organic sales increases across all business areas. Sales growth in the Asia-Pacific region was very strong with all business areas contributing.

 

Net assets and financial position of the Group

No substantial changes to the net assets and financial position of the Group occurred in the period under review compared to the situation as at December 31, 2022.

 

Outlook for the Henkel Group

The guidance for fiscal 2023, which was published on March 7, 2023, has been confirmed.

For the current year, Henkel continues to expect organic sales growth of between 1.0 and 3.0 percent, with both business units anticipated to be within this bandwidth. Adjusted
return on sales (adjusted EBIT margin) is still expected to be in the range of 10.0 to 12.0 percent. Adjusted return on sales is anticipated to be between 13.0 and 15.0 percent for Adhesive Technologies and between 7.5 and 9.5 percent for Consumer Brands. For
adjusted earnings per preferred share (EPS), Henkel continues to expect a development in the range of -10.0 to +10.0 percent at constant exchange rates.

 

Details on the amended reporting structure adopted as of Q1 2023

Starting from the first quarter of 2023, Henkel has amended its reporting structure to reflect its new organizational setup. Going forward, the company will be reporting on the performance of its two business units, Adhesive Technologies and Consumer Brands. As announced, Henkel will also be reporting key sales figures at the business area level, thus increasing transparency. Specifically, the company is now reporting sales as well as nominal and organic sales growth. In the Consumer Brands business unit, these figures are reported for the business areas Laundry & Home Care, Hair and Other Consumer Businesses. In addition, Henkel is optimizing the organizational structure within its Adhesive Technologies business unit in order to use scale and competence benefits even more efficiently, while at the same time ensuring close customer and market proximity. Going forward, the business unit will comprise the three business areas Mobility & Electronics, Packaging & Consumer Goods, and Craftsmen, Construction & Professional. This new structure is already reflected in the present Quarterly Statement for the first quarter of 2023, hence ahead of its full organizational implementation effective in the second quarter of 2023.

The company has also slightly modified its regional reporting structure to better reflect the allocation of management responsibilities. From the first quarter of 2023 onward, Henkel will be commenting on its business performance in the regions of Europe, IMEA (India, Middle East, Africa), North America, Latin America and Asia-Pacific.

Note: All individual figures in this document have been commercially rounded. Addition may result in deviations from the totals indicated

About Henkel

With its brands, innovations and technologies, Henkel holds leading market positions worldwide in the industrial and consumer businesses. The Adhesive Technologies business unit is global leader in the market for adhesives, sealants and functional coatings. With Consumer Brands, the company holds leading positions especially in hair care and laundry & home care in many markets and categories around the world. The company's three strongest brands are Loctite, Persil and Schwarzkopf. In fiscal 2022, Henkel reported sales of more than 22 billion euros and adjusted operating profit of around 2.3 billion euros. Henkel’s preferred shares are listed in the German stock index DAX. Sustainability has a long tradition at Henkel, and the company has a clear sustainability strategy with specific targets. Henkel was founded in 1876 and today employs a diverse team of more than 50,000 people worldwide – united by a strong corporate culture, shared values and a common purpose: “Pioneers at heart for the good of generations.” More information at www.henkel.com.

This document contains statements referring to future business development, financial performance and other events or developments of future relevance for Henkel that may constitute forward-looking statements. Statements with respect to the future are characterized by the use of words such as expect, intend, plan, anticipate, believe, estimate, and similar terms. Such statements are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. These statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially (both positively and negatively) from forward-looking statements. Many of these factors are outside Henkel’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements.

This document includes supplemental financial indicators that are not clearly defined in the applicable financial reporting framework and that are or may be alternative performance measures. These supplemental financial indicators should not be viewed in isolation or as alternatives to measures of Henkel’s net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.

This document has been issued for information purposes only and is not intended to constitute investment advice or an offer to sell, or a solicitation of an offer to buy, any securities.

Financial calendar

 

Publication of Half-Year Report 2023:
Thursday, August 10, 2023

Publication of Statement for Q3 2023:
Thursday, November 9, 2023

 

Contact

 

Investors & Analysts

Leslie Iltgen
Phone: +49 211 797-1631 
Email: [email protected] 

Jennifer Ott
Phone: +49 211 797-2756 
Email: [email protected] 

Dr. Dennis Starke
Phone: +49 211 797-5601
Email: [email protected] 

Thomas Rosenke
Phone: +49 211 797-3563
Email: [email protected]


Press & Media

Lars Witteck

Phone: +49 211 797-2606
Email: [email protected]

Wulf Klüppelholz
Phone: +49 211 797-1875
Email: [email protected]

Hanna Philipps
Phone: +49 211 797-3626
Email: [email protected]

Further information containing download material, and the link to listen in on the conference call, are available at:

www.henkel.com/press

www.henkel.com/ir

 



04.05.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Henkel AG & Co. KGaA
Henkel Str. 67
40191 Düsseldorf
Germany
Phone: +49 (0)211 797-0
Fax: +49 (0)211 798-4008
E-mail: [email protected]
Internet: www.henkel.de
ISIN: DE0006048432, DE0006048408
WKN: 604843, 604840
Indices: DAX
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange
EQS News ID: 1623969

 
End of News EQS News Service

1623969  04.05.2023 CET/CEST

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Die wichtigsten Finanzdaten auf einen Blick
  2017 2018 2019 2020 2021 2022 2023e
Umsatzerlöse1 20.029,00 19.899,00 20.114,00 19.250,00 20.066,00 22.397,00 21.514,00
EBITDA1,2 3.727,00 3.694,00 3.656,00 3.115,00 3.191,00 2.685,00 2.929,00
EBITDA-Marge3 18,61 18,56 18,18 16,18 15,90 11,99
EBIT1,4 3.055,00 3.116,00 2.899,00 2.019,00 2.213,00 1.810,00 2.011,00
EBIT-Marge5 15,25 15,66 14,41 10,49 11,03 8,08 9,35
Jahresüberschuss1 2.541,00 2.330,00 2.103,00 1.424,00 1.629,00 1.253,00 1.340,00
Netto-Marge6 12,69 11,71 10,46 7,40 8,12 5,59 6,23
Cashflow1,7 2.468,00 2.698,00 3.241,00 3.080,00 2.141,00 1.247,00 3.255,00
Ergebnis je Aktie8 5,81 5,33 4,81 3,25 3,78 2,95 3,15
Dividende8 1,79 1,85 1,85 1,85 1,85 1,85 1,62
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2023 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

INVESTOR-INFORMATIONEN
©boersengefluester.de
Henkel VZ
WKN Kurs in € Einschätzung Börsenwert in Mio. €
604843 71,000 Halten 29.471,35
KGV 2025e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
17,53 21,53 0,82 17,03
KBV KCV KUV EV/EBITDA
1,62 9,55 1,37 10,91
Dividende '22 in € Dividende '23e in € Div.-Rendite '23e
in %
Hauptversammlung
1,85 1,85 2,61 22.04.2024
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
08.05.2024 13.08.2024 06.11.2024 04.03.2024
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
-1,22% 0,16% -2,55% -5,59%
    
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Chemie , 604843 , HEN3 , XETR:HEN3