In the first quarter of 2024, Henkel reported Group sales of approximately 5.3 billion euros, achieving a robust organic sales growth of 3.0 percent. This growth was primarily driven by favorable pricing developments across both business units. While overall volume at the Group level showed sequential improvement compared to the fourth quarter of 2023, it remained impacted by portfolio adjustments in the Consumer Brands business unit. In nominal terms, sales decreased by 5.2 percent year-over-year, mainly due to the divestiture of operations in Russia and adverse foreign exchange effects.
“We had a very good start to the year. Additionally, we finalized the acquisitions of Seal for Life Industries and Vidal Sassoon in China faster than expected, which will further strengthen our businesses,” said Carsten Knobel, CEO of Henkel. “Given these developments, we significantly raised our sales and earnings outlook for 2024 last week. This demonstrates our clear and effective strategy. We are delivering on our promises and are on track for further profitable growth.”
The Adhesive Technologies business unit saw a positive organic sales increase in the first quarter, largely driven by strong growth in the Mobility & Electronics sector. The Consumer Brands business unit experienced very strong organic sales growth across all business areas, with notable contributions from the Hair business.
Group Sales Performance
Henkel’s Group sales for the first quarter of 2024 were 5,317 million euros, reflecting a nominal decrease of 5.2 percent compared to the same period in the previous year (5,609 million euros). Organically, adjusting for foreign exchange and acquisitions/divestments, sales increased by 3.0 percent. This growth was primarily driven by pricing. Acquisitions and divestments reduced sales by 4.3 percent, and foreign exchange effects had a further negative impact of 3.9 percent on sales.
Organic sales growth varied by region: Europe saw a 2.5 percent increase, the IMEA region achieved a significant 26.9 percent increase, while North America and Latin America posted declines of 3.0 percent and 2.7 percent, respectively. The Asia-Pacific region achieved a 3.5 percent increase in organic sales.
Sales Performance of Adhesive Technologies
The Adhesive Technologies business unit reported sales of 2,677 million euros in the first quarter of 2024, a nominal decrease of 4.1 percent from the previous year (2,791 million euros). However, organically, sales increased by 1.3 percent. Both price and volume showed positive trends, though foreign exchange effects reduced sales by 3.8 percent, and acquisitions/divestments had a further negative effect of 1.7 percent.
The Mobility & Electronics business area within Adhesive Technologies drove the positive organic sales development, with a strong increase of 3.7 percent, particularly in the Automotive and Electronics sectors. The Industrial business showed positive growth, while the Packaging & Consumer Goods business area had a flat organic sales performance at -0.2 percent. Positive developments in the Packaging business helped offset declines in the Consumer Goods business. The Craftsmen, Construction & Professional business area saw modest growth at 0.3 percent, supported by the Construction business. The General Manufacturing & Maintenance business faced challenges, leading to an overall negative performance.
Regionally, the organic sales performance of the Adhesive Technologies business unit was mixed. Europe’s sales were below the prior-year quarter, despite growth in the Craftsmen, Construction & Professional area. North America saw positive growth in Mobility & Electronics but overall sales were down. The IMEA region achieved double-digit organic growth across all business areas. Latin America posted declines in all business areas, while the Asia-Pacific region saw strong growth, particularly in China, where market conditions began to stabilize.
Sales Performance of Consumer Brands
The Consumer Brands business unit reported sales of 2,605 million euros in the first quarter of 2024, a nominal decrease of 6.0 percent compared to the prior-year quarter. Organically, sales increased by 5.2 percent, driven by strong pricing despite slight volume declines due to ongoing portfolio measures. Foreign exchange effects negatively impacted sales by 4.0 percent, and acquisitions/divestments reduced sales by 7.2 percent.
The Laundry & Home Care business area saw very strong organic sales growth of 4.6 percent, led by double-digit growth in the Fabric Care category and significant growth in the Toilet Care and Dishwashing categories. The Hair business area achieved a strong organic sales increase of 6.9 percent, with significant growth in the Hair Styling category and very strong growth in the Professional business. Other Consumer Businesses posted a strong organic sales increase of 3.4 percent.
Regionally, the Consumer Brands business unit had mixed results. Europe recorded strong organic growth, driven by the Hair and Laundry & Home Care business areas. North America faced a decline, mainly due to portfolio adjustments in Laundry & Home Care. The IMEA region achieved double-digit organic growth across all business areas, while Latin America saw positive growth driven by the Hair business area. The Asia-Pacific region’s sales were flat, supported by the Laundry & Home Care business area.
