Henkel Group sales rise 2.9% to 10.8 billion euros in the first half of the year

Henkel Group sales rose organically by 2.9% to around 10.8 billion euros (-1.0% nominal), with growth in both business units. Operating EBIT rose significantly by 28.4% to 1.61 billion euros, and the EBIT margin also improved significantly by 340 basis points to 14.9%.

"Overall, we achieved very good results in the first half of the year. This shows that our strategy is on the right track and that our focus on purposeful growth is bearing tangible fruit," said Carsten Knobel, CEO of Henkel.

"In the first half of the year, both business units jointly drove organic sales growth and improved earnings. The successful integration of our consumer goods businesses and the implementation of strategic measures and programs had a very positive impact on sales, gross margin and earnings development. In the Adhesives business, we have aligned our organizational structure even more closely with our customers and the changes we initiated have made a significant contribution to the positive development of Henkel's business. Our free cash flow was also strong, exceeding the already high level in the first half of 2023. All this enables us to make further targeted investments in our business and in the future: in brands, technologies and innovations. In addition, we are driving forward important initiatives in the areas of sustainability and digitalization to further strengthen our competitive position," added Carsten Knobel.

"Following the strong business performance in the first half of the year, we are confident about the rest of the year and therefore raised our earnings guidance for fiscal 2024 in mid-July. We are fulfilling our commitments and are on the right track for further profitable growth. This is also reflected in the adjustment of our medium- and long-term financial targets: We are confident that we will achieve our sales and earnings targets in the medium term."

Henkel currently expects organic sales growth of 2.5% to 4.5% in fiscal 2024, with an adjusted return on sales still expected to be between 16.0% and 17.0%. Organic sales growth in the Adhesive Technologies business unit is still expected to be between 2.0% and 4.0%. Organic sales growth in the Consumer Brands business unit is expected to be between 3.0% and 5.0%, with an adjusted return on sales now expected to be between 13.0% and 14.0%.

The adjusted return on sales (EBIT margin) at Group level is now expected to be between 13.5 and 14.5 percent, compared with 13.0 to 14.0 percent previously. Adjusted earnings per preferred share (EPS) at constant exchange rates are expected to increase by between 20.0 and 30.0 percent.