Henkel delivers good organic sales growth in first half of 2024

He added, “In the first half of the year, organic sales growth and the improvement in earnings were driven by both business units. The merger of our consumer businesses is successful and the implementation of our strategic measures and initiatives has a very positive impact on sales, gross margin and earnings development. Also, in our adhesives business where we have aligned the organisational structure even more closely to our customers, the changes we have initiated are significantly contributing to Henkel's positive development. Our free cash flow was also strong, exceeding the already high level from the first half of 2023. All of this allows us to further make targeted investments in our business and our future: in brands, technologies and innovations. In addition, we are driving important initiatives in the areas of sustainability and digitalisation to further enhance our competitive position.”

The outlook for the current financial year, which was updated on 3 May 2024, was raised on 17 July regarding the earnings expectation. This is mainly due to higher profit expectations in the consumer brands business unit, while at the same time, the company is increasing investments in marketing to support innovations. The outlook continues to consider the expectation of higher prices for direct materials in the second half of the year. 

Henkel achieved Group sales of euros 10,813 million in the first half of 2024, equivalent to a nominal development of -1.0%. After nominal sales development in the previous quarters was negatively impacted by the divestment of the business activities in Russia, Henkel was now able to achieve nominal sales growth again in the second quarter of 2024 (Q2: euros 5,496 million, +3.4%). 

The Adhesive Technologies business unit generated good organic sales growth of 2% in the first half year of 2024, driven by the mobility and electronics, and the craftsmen, construction amd professional business areas. (Q2: +2.6%). The Consumer Brands business unit achieved strong organic sales growth of 4.3%, to which all business areas contributed (Q2: +3.3%). Sales growth in both business units was driven by a positive price development. At Group level, volume development, which continues to be impacted by the portfolio measures in Consumer Brands showed a slightly positive trend – both compared to the first half of 2023 and a sequential improvement compared to the first quarter of 2024. 

“Overall, we are very pleased with Henkel’s successful business performance in the first half of the year and proud of the good progress we have made in implementing our strategic growth agenda," said Carsten Knobel. "We are delivering what we have committed to and what we have announced. And we are making tangible progress: in our businesses, in sales and earnings. We are changing Henkel with bold decisions for a successful future. And with a clear strategy, we are on the right track for further profitable growth.”