Henkel’s annual results demonstrate implementation of growth agenda

The Adhesive Technologies business unit generated good organic sales growth of 2.4%, driven in particular by the mobility and electronics business area. The Consumer Brands business unit achieved strong organic sales growth of 3.0%, mainly driven by the hair business area.

Adjusted operating profit (adjusted EBIT) increased significantly by 20.9% to EUR 3,089-million (previous year: 2,556-million euros).

Adjusted return on sales (adjusted EBIT margin) in fiscal 2024 was also significantly higher year-on-year at 14.3% (2023: 11.9%).

Adjusted earnings per preferred share increased significantly by 23.2% to EUR 5.36 (previous year: EUR 4.35). At constant exchange rates, adjusted earnings per preferred share increased by 25.1%.

Net working capital as a percentage of sales amounted to 3.0%, which was slightly up year on year (2023: 2.6 %).

Free cash flow totaled EUR 2,362-million, representing a decrease compared to the prior-year figure (2023: EUR 2,603-million), the latter having been positively impacted by a normalisation of the net working capital. 

At EUR -93 million, the net financial position was slightly below the prior-year level, due in particular to payments made for acquisitions (December 31, 2023: EUR 12 million).

“Fiscal 2024 was once again marked by major challenges and many economic uncertainties. Nevertheless, we have consistently advanced Henkel over the past year and reached or even exceeded important milestones. Above all, the very good business results for 2024 demonstrate the successful implementation of our purposeful growth agenda,” said Henkel CEO Carsten Knobel. 

He added, “In 2024, we achieved good organic sales growth and very significantly improved our profitability – with an outstanding margin increase of 2.4 percentage points, supported by an excellent gross margin development, and with an extraordinary increase in earnings per preferred share of 25%. The targeted enhancement of our products' value for customers and consumers was a key driver of our earnings improvement. Additionally, savings from the Consumer Brands integration, as well as the announced portfolio optimisation measures contributed to these strong results.”

He said the results of the past year are a clear evidence that Henkel’s transformation is progressing successfully and that, with its strategic agenda for purposeful growth, it is on the right path to best position the company for the future. 

Carsten said. “This is also reflected in the outlook for fiscal 2025, in which we expect further sales and earnings growth despite a business environment that remains challenging. I would like to thank all Henkel employees for their outstanding performance. Through their teamwork and extraordinary commitment, we have once again successfully navigated our company through a challenging year.”