Henkel Q1 Sales Hit €5.24 Billion with Adhesives Up 1.1 Percent Despite Global Headwinds

Henkel’s Q1 2025 results show consolidated sales of €5.24 billion, slightly below the €5.32 billion posted in the same period last year. The company recorded a 1.0% decline in organic sales, largely due to ongoing geopolitical conflicts and macroeconomic pressure, with North America hit hardest by weakened demand and low consumer sentiment.

Amid a sluggish global economy, Henkel’s Adhesive Technologies division delivered a 1.1% organic sales increase, supported by strong growth in the mobile and electronics sector. Meanwhile, the Consumer Brands division fell 3.5% organically, facing challenges from inventory adjustments and fragile consumer confidence—especially in North America and Europe.

CEO Carsten Knobel emphasized that Henkel remains on track with its 2025 goals, despite the slow start. The company continues to benefit from robust gross and EBIT margins, and recently finalized the divestiture of its North American retail business—completing a strategic brand reshaping plan launched in 2022.

Henkel’s regional performance was mixed. North America dropped 5.6%, while Europe fell 2%, both reflecting broader economic softness. In contrast, the Asia-Pacific region grew 3.6%, helped by double-digit growth in China’s electronics sector. The India, Middle East, and Africa region led with 4.6% growth, while Latin America rose 1.5%.

In Adhesive Technologies, growth was driven by 3.1% expansion in mobile and electronics, although the auto sector lagged. Packaging and consumer goods dipped slightly by 0.4%, while construction and crafts rose 0.4%.

The Consumer Brands division, which includes detergents, home care, and hair care, saw broad declines. Laundry sales fell 4.1% due to weaker fabric cleaning products, while home care showed resilience with solid dishwashing liquid growth. Hair care dropped 1.6%, though retail products like coloring and styling performed well. Body care declined sharply, especially in North America and Europe.

Henkel maintained its full-year forecast, expecting organic growth between 1.5% and 3.5%, with adhesives growing up to 4.0% and consumer brands up to 3.0%. Adjusted EBIT margin is forecast to remain strong at 14.0% to 15.5%, with stable capital expenditure and restructuring costs.

Despite the uncertainties, Henkel’s strategy of innovation, selective investments, and global rebalancing is showing signs of resilience. The company expects a stronger second half of 2025, underpinned by product innovation and improved market dynamics.