Henkel FY2023: ‘very strong’ sales growth and significant earnings improvement

Henkel FY2023: ‘very strong’ sales growth and significant earnings improvement

THE WHAT? Henkel has announced its results for FY2023. The German manufacturer of Schwarzkopf pronounced its sales growth as ‘very strong’, with organic sales up 4.2 percent to €21.5 billion. Operating profit also saw a significant increase, rising 10.2 percent to €2.6 million.

THE DETAILS The Consumer Brands unit achieved very strong organic sales growth of 6.1 percent, driven by the Laundry & Home Care and Hair businesses, Henkel said with the increase driven by double-digit price increases.

Henkel forecast organic sales growth of between 2 and 4 percent for fiscal 2024 and an adjusted EBIT margin of between 12 and 13.5 percent.

THE WHY? Henkel CEO Carsten Knobel, reveals, “Despite a persistently challenging market environment, we consistently drove our growth strategy forward in 2023 and even accelerated its implementation. We delivered very strong organic sales growth and significantly improved profitability. By that, we exceeded the outlook made at the beginning of the year. This successful development was driven by both Adhesive Technologies and Consumer Brands.

“We have also made faster progress than initially planned with the merger of the two former consumer businesses, Laundry & Home Care and Beauty Care, to form the new Consumer Brands business unit. The savings from the integration and the continued portfolio measures also contributed to the strong business performance of the business unit. In the Adhesive Technologies business, we have aligned our organization even more closely to our customers under a new management. We have increased sales organically and significantly improved earnings in a generally volatile industrial environment. In addition, we have further strengthened both business units through targeted acquisitions. Based on this performance and in line with our dividend policy, we will propose a stable dividend to our shareholders at the Annual General Meeting.”