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EQS-News: Henkel AG & Co. KGaA / Key word(s): Quarterly / Interim Statement/Quarter Results
Henkel delivers strong organic sales growth in the first quarter
2024-05-08 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
Very good start to fiscal 2024
Henkel delivers strong organic sales growth
in the first quarter
. Group sales: around 5.3 billion euros, organic growth of 3.0 percent
. Organic sales increase driven by both business units:
. Adhesive Technologies: positive organic sales growth of 1.3 percent
. Consumer Brands: very strong organic sales growth of 5.2 percent
. Acquisitions of Seal for Life Industries and Vidal Sassoon in China closed earlier than anticipated

. Further progress in implementing strategic growth agenda
. Outlook for fiscal 2024 significantly raised on May 3:
. Organic sales growth: 2.5 to 4.5 percent (previously: 2.0 to 4.0 percent)
. Adjusted return on sales: 13.0 to 14.0 percent (previously: 12.0 to 13.5 percent)
. Adjusted earnings per preferred share (EPS): Increase in the range of +15.0 to +25.0 percent at constant
exchange rates (previously: +5.0 to +20.0 percent)

Düsseldorf, May 8, 2024 - In the first quarter of 2024, Henkel achieved Group sales of around 5.3 billion euros and
generated strong organic sales growth of 3.0 percent. The increase was driven by a positive price development in both
business units. Volume development at Group level, which is still being impacted by the portfolio measures in the
Consumer Brands business unit, showed a further sequential improvement compared to the fourth quarter of 2023. In
nominal terms, sales were down -5.2 percent compared to the prior-year quarter - predominantly due to the sale of the
business activities in Russia and to negative foreign exchange effects.
"We had a very good start to the year. In addition, we were able to close the acquisitions of Seal for Life Industries
and Vidal Sassoon in China faster than anticipated and will thus further strengthen our businesses," said Carsten
Knobel, CEO of Henkel. "In light of these developments, we significantly raised our sales and earnings outlook for 2024
last week. This demonstrates: We have a clear strategy which we are executing on stringently. We deliver on what we
have promised. And we are on the right track for further profitable growth."
The positive organic sales increase of the Adhesive Technologies business unit in the first quarter was primarily
driven by strong organic sales growth in the Mobility & Electronics business area. Very strong organic sales growth in
the Consumer Brands business unit was fueled by all business areas, with a particular contribution coming from the Hair
business.
Sales performance by business unit
Sales

in million euros         Q1/2023   Q1/2024     +/-   Organic 
Henkel Group               5,609     5,317   -5.2%      3.0% 
Adhesive Technologies      2,791     2,677   -4.1%      1.3% 
Consumer Brands            2,772     2,605   -6.0%      5.2% 

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Group sales performance

Group sales in the first quarter of 2024 totaled 5,317 million euros , a nominal decrease of

-5.2 percent compared to the prior-year quarter (5,609 million euros). Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 3.0 percent. The strong organic sales growth at Group level was driven by pricing. Acquisitions/divestments reduced sales by -4.3 percent. Foreign exchange effects had a further negative impact of -3.9 percent on sales development.

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Group sales performance

in million euros                 Q1/2023   Q1/2024 
Sales                              5,609     5,317 
Change versus previous year         6.4%     -5.2% 
Foreign exchange                    0.9%     -3.9% 
Adjusted for foreign exchange       5.5%     -1.3% 
Acquisitions/divestments           -1.1%     -4.3% 
Organic                             6.6%      3.0% 
Of which price                     12.0%      3.4% 
Of which volume                    -5.4%     -0.4% 

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Organic sales growth in the Europe region amounted to 2.5 percent in the first quarter. In the IMEA region, sales increased organically by 26.9 percent. The North America region posted a negative organic sales development of -3.0 percent. In Latin America, sales were organically -2.7 percent below the prior-year quarter. The Asia-Pacific region achieved organic sales growth of 3.5 percent.

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Sales performance by region^1

Europe    IMEA   North America   Latin America     Asia-   Corporate   Henkel Group 
in million euros                                                                    Pacific 
Sales January-March 2024            2,023     575           1,478             421       784          35          5,317 
Sales January-March 2023            2,201     563           1,584             411       805          46          5,609 
Change versus prior-year quarter    -8.1%    2.1%           -6.6%            2.5%     -2.5%           -          -5.2% 
Organic                              2.5%   26.9%           -3.0%           -2.7%      3.5%           -           3.0% 

Proportion of
Group sales 2024 38% 11% 28% 8% 15% 1% 100%
Proportion of
Group sales 2023 39% 10% 28% 7% 14% 1% 100%

^1 By location of company.
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Sales performance Adhesive Technologies

The Adhesive Technologies business unit achieved sales of 2,677 million euros in the first quarter of 2024, representing a nominal decrease of -4.1 percent compared to the prior-year quarter (2,791 million euros). Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 1.3 percent compared to the first quarter of 2023. Both price and volume showed a positive development. Foreign exchange effects reduced sales by -3.8 percent. Acquisitions/divestments had a further negative effect of -1.7 percent.

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Sales performance Adhesive Technologies

in million euros                           Q1/2023   Q1/2024 
Sales                                        2,791     2,677 
Proportion of Group sales                      50%       50% 
Change versus previous year                   6.1%     -4.1% 
Foreign exchange                              1.1%     -3.8% 
Adjusted for foreign exchange                 5.0%     -0.4% 
Acquisitions/divestments                     -1.8%     -1.7% 
Organic                                       6.8%      1.3% 
Of which price                               11.4%      1.0% 
Of which volume                              -4.6%      0.3% 

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The positive organic sales development of the Adhesive Technologies business unit in the first quarter was primarily fueled by the Mobility & Electronics business area, which achieved a strong increase of 3.7 percent. This growth was driven by the Automotive and Electronics businesses. The Industrial business showed a positive development. In a continuously challenging market environment, the Packaging & Consumer Goods business area recorded an overall flat organic sales development of -0.2 percent, which was supported by a positive volume development. The Packaging business achieved positive growth, benefiting from first signs of improvement in demand. The Consumer Goods business recorded a slight decline compared to a very strong prior-year quarter. Organic sales growth in the Craftsmen, Construction & Professional business area was at 0.3 percent versus the prior-year quarter. This was particularly supported by the Construction business which achieved good growth. The General Manufacturing & Maintenance business showed an overall negative performance, which was primarily due to the currently challenging market environment.

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Sales performance by business area
Sales

in million euros                         Q1/2023   Q1/2024     +/-   Organic 
Adhesive Technologies                      2,791     2,677   -4.1%      1.3% 
Mobility & Electronics                       960       946   -1.5%      3.7% 
Packaging & Consumer Goods                   883       838   -5.1%     -0.2% 
Craftsmen, Construction & Professional       949       893   -5.9%      0.3% 

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From a regional perspective, the organic sales performance of the Adhesive Technologies business unit was mixed. In Europe, sales overall were organically below the prior-year quarter, even though the Craftsmen, Construction & Professional business area achieved positive organic growth. While North America recorded a positive organic sales increase in the Mobility & Electronics business area, overall sales performance in the region was below that of the prior-year quarter. The IMEA region achieved double-digit organic sales increase, with all business areas contributing with double-digit growth rates. Latin America posted a negative organic sales development in all business areas. By contrast, sales growth in the Asia- Pacific region was very strong - mainly driven by a significantly positive development in China, which was supported by first signs of a stabilizing market environment following the challenging conditions encountered in the prior year.

Sales performance Consumer Brands

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May 08, 2024 01:30 ET (05:30 GMT)