Henkel delivers strong organic sales growth in the first quarter
In the first quarter of 2024, Henkel achieved group sales of around euros 5.3-billion and generated strong organic sales growth of 3%. The increase was driven by a positive price development in both business units. Volume development at group level, which is still being impacted by the portfolio measures in the consumer brands business unit, showed a further sequential improvement compared to the fourth quarter of 2023.
12 Jun 2024 | By PrintWeek Team
The company reported organic growth of 3%
In nominal terms, sales were down -5.2% compared to the prior-year quarter – predominantly due to the sale of the business activities in Russia and to negative foreign exchange effects.
“We had a very good start to the year. In addition, we were able to close the acquisitions of Seal for Life Industries and Vidal Sassoon in China faster than anticipated and will thus further strengthen our businesses,” said Carsten Knobel, CEO of Henkel. “In light of these developments, we significantly raised our sales and earnings outlook for 2024 last week. This demonstrates that we have a clear strategy which we are executing on stringently. We deliver on what we have promised. And we are on the right track for further profitable growth.”
The positive organic sales increase of the adhesive technologies business unit in the first quarter was primarily driven by strong organic sales growth in the mobility and electronics business area. Very strong organic sales growth in the Consumer Brands business unit was fueled by all business areas, with a particular contribution coming from the hair business.
Group sales in the first quarter of 2024 totalled euros 5,317-million, a nominal decrease of -5.2% compared to the prior year's quarter (euros 5,609-million). Organically (adjusted for foreign exchange and acquisitions/divestments), sales increased by 3%. The strong organic sales growth at the group level was driven by pricing. Acquisitions/divestments reduced sales by -4.3%. Foreign exchange effects had a further negative impact of -3.9% on sales development.
The adhesive technologies business unit achieved sales of euros 2,677 million in the first quarter of 2024, representing a nominal decrease of -4.1% compared to the prior-year quarter (euros 2,791-million). Organically (adjusted for foreign exchange and acquisitions/divestments), sales increased by 1.3% compared to the first quarter of 2023. Both price and volume showed a positive development. Foreign exchange effects reduced sales by -3.8%. Acquisitions/divestments had a further negative effect of -1.7%.
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