Henkel FY2022: Sales swell 8.8 percent but 2023 outlook muted

Henkel FY2022: Sales swell 8.8 percent but 2023 outlook muted

THE WHAT? Henkel has announced its results for fiscal 2022. The German manufacturer of Schwarzkopf saw organic sales grow 8.8 percent to hit €22.4 billion versus the prior year, while operating profit increased 13.7 percent to €2.3 billion.

THE DETAILS Both emerging markets and mature markets saw sales growth, up 13.3 percent and 5.2 percent respectively. The Beauty Care unit, however, struggled to overcome the impact of Henkel’s portfolio reshuffle, losing 0.5 percent in value despite the recovery in the professional hair business.

Henkel isn’t as optimistic about the year ahead, however, forecasting organic sales growth of between 1 and 3 percent in fiscal 2023.

THE WHY? Carsten Knobel, CEO, explains, “In 2022, we achieved significant sales growth and a robust earnings performance in a very challenging year – and we implemented important strategic measures. We succeeded in partially compensating the dramatic rise in raw material and logistics costs through higher prices and continued efficiency improvements. This is reflected in our sales, which reached a new high of around €22.4 billion, and an operating profit of €2.3 billion. Based on that, we are proposing to our shareholders a stable dividend at prior-year level. By merging our consumer businesses into the Consumer Brands business unit, we have also successfully launched one of the biggest transformations of our company in recent decades. “Thanks to the great commitment of our global team, our strong culture and with a clear, long-term growth strategy, we have overall mastered the challenges of the past fiscal year well. I see us well equipped to navigate Henkel through these difficult times and to achieve our ambitious goals. We are poised for further growth in the current fiscal year – driven by our two business units Adhesive Technologies and Consumer Brands.”