Henkel delivers strong organic sales growth in the first quarter

EQS-News: Henkel AG & Co. KGaA / Key word(s): Quarterly / Interim
Statement/Quarter Results
Henkel delivers strong organic sales growth in the first quarter

08.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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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%

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.

     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%

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.

  Sales
  performance by
  region1
  in million        Europ-    IME-      North      Latin    AsiaPac-    Corpo-    Henkel
  euros                  e       A    America    America        ific      rate     Group
  Sales              2,023     575      1,478        421         784        35     5,317
  January-March
  2024
  Sales              2,201     563      1,584        411         805        46     5,609
  January-March
  2023
  Change versus      -8.1%    2.1-      -6.6%       2.5%       -2.5%         -     -5.2%
  prior-year                     %
  quarter
  Organic             2.5%    26.-      -3.0%      -2.7%        3.5%         -      3.0%
                                9%
  Proportion of        38%     11%        28%         8%         15%        1%      100%
  Group sales
  2024
  Proportion of        39%     10%        28%         7%         14%        1%      100%
  Group sales
  2023

  1 By location
  of company.

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.

     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%

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.

  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%

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

In the Consumer Brands business unit, sales in the first quarter of 2024
totaled 2,605 million euros, a nominal decrease of -6.0 percent versus the
prior-year quarter. Organically (i.e. adjusted for foreign exchange and
acquisitions/divestments), sales increased by 5.2 percent. Pricing in the
business unit remained very strong compared to the first quarter of 2023.
Volumes declined slightly, particularly due to the impacts of the ongoing
portfolio measures. Foreign exchange effects had a negative impact of -4.0
percent on sales. Acquisitions/divestments reduced sales by a further -7.2
percent.

     Sales performance Consumer Brands
     in million euros                         Q1/2023        Q1/2024
     Sales                                      2,772          2,605
     Proportion of Group sales                    49%            49%
     Change versus previous year                 7.3%          -6.0%
     Foreign exchange                            0.8%          -4.0%
     Adjusted for foreign exchange               6.5%          -2.0%
     Acquisitions/divestments                   -0.5%          -7.2%
     Organic                                     7.0%           5.2%
     Of which price                             12.7%           6.2%
     Of which volume                            -5.7%          -1.0%

In the first quarter, the Laundry & Home Care business area generated very
strong organic sales growth of 4.6 percent. The Laundry business posted
strong growth, mainly driven by a double-digit increase in the Fabric Care
category. The Home Care business achieved significant organic sales growth,
which was particularly fueled by a double-digit sales increase in the Toilet
Care category and very strong growth in the Dishwashing category.

The Hair business area achieved very strong organic sales growth of 6.9
percent. Growth in the Consumer business was significant, driven in
particular by the Hair Styling category. The Professional business achieved
very strong organic sales growth.

The Other Consumer Businesses posted a strong organic sales increase of 3.4
percent.

  Sales performance by business area
                                         Sales
  in million euros                      Q1/2023    Q1/2024      +/-    Organic
  Consumer Brands                         2,772      2,605    -6.0%       5.2%
  Laundry & Home Care                     1,789      1,661    -7.2%       4.6%
  Hair                                      811        781    -3.6%       6.9%
  Other Consumer Businesses                 171        163    -4.8%       3.4%

From a regional perspective, the Consumer Brands business unit recorded a
mixed development in the period under review. The Europe region achieved a
very strong organic sales increase in the first quarter, driven by both the
Hair and the Laundry & Home Care business areas. The North America region
recorded a negative organic sales development, mainly due to the portfolio
measures implemented in the Laundry & Home Care business area. The IMEA
region achieved double-digit organic sales growth across all business areas.
The positive organic sales increase in Latin America was driven by the Hair
business area, with both the Consumer and the Professional businesses
contributing to growth. Sales growth was flat in the Asia-Pacific region,
supported by the Laundry & Home Care business area.

Net assets and financial position of the Group

No substantial changes to the net assets and financial position of the Group
occurred in the period under review compared to the situation as at December
31, 2023.

Outlook for the Henkel Group

The guidance for fiscal 2024, which was published on March 4, 2024, was
raised as of May 3.

For the current year, Henkel now expects organic sales growth of 2.5 to 4.5
percent (previously: 2.0 to 4.0 percent). For Adhesive Technologies, organic
sales growth is still expected in the range of 2.0 to 4.0 percent. For
Consumer Brands, the company now anticipates an organic sales increase of
3.0 to 5.0 percent (previously: 2.0 to 4.0 percent).

Adjusted return on sales (adjusted EBIT margin) at Group level is now
expected to be in the range of 13.0 to 14.0 percent (previously: 12.0 to
13.5 percent). For Adhesive Technologies, adjusted return on sales is now
anticipated to be between 16.0 and 17.0 percent (previously: 15.0 to 16.5
percent) and for Consumer Brands in the range of 12.0 to 13.0 percent
(previously: 11.0 to 12.5 percent).

For adjusted earnings per preferred share (EPS), Henkel now expects an
increase in the range of +15.0 to +25.0 percent at constant exchange rates
(previously: +5.0 to +20.0 percent).

Henkel has also updated the following expectations:

  * Acquisitions/Divestments: neutral impact on nominal sales growth
    (previously: negative impact in the low single-digit percentage range)

  * Translation of sales in foreign currencies: negative impact in the low
    to mid-single-digit percentage range
    (previously: negative impact in the mid-single-digit percentage range)

The following expectations for 2024 have remained unchanged:

* Prices for direct materials: flat development1

* Restructuring expenses of 250 to 300 million euros

  * Cash outflows from investments in property, plant and equipment and
    intangible assets of between 650 and 750 million euros

1 Compared to the previous year's average.

About Henkel

With its brands, innovations and technologies, Henkel holds leading market
positions worldwide in the industrial and consumer businesses. Henkel's
Adhesive Technologies business unit leads the global market for adhesives,
sealants and functional coatings. The Consumer Brands business unit occupies
a leading position in numerous markets and categories around the globe,
particularly in the Laundry & Home Care and Hair business areas. Henkel's
three biggest brands are Loctite, Persil and Schwarzkopf. In fiscal 2023,
Henkel reported sales of more than 21.5 billion euros and adjusted operating
profit of around 2.6 billion euros. Henkel's preferred shares are listed in
the German stock index DAX. Sustainability has a long tradition at Henkel,
and the company has a clear sustainability strategy with specific targets.
Henkel was founded in 1876 and today employs a diverse team of around 48,000
people worldwide - united by a strong corporate culture, shared values and a
common purpose: "Pioneers at heart for the good of generations." For further
details, please see www.henkel.com.

This document contains statements referring to future business development,
financial performance and other events or developments of future relevance
for Henkel that may constitute forward-looking statements. Statements with
respect to the future are characterized by the use of words such as expect,
intend, plan, anticipate, believe, estimate, and similar terms. Such
statements are based on current estimates and assumptions made by the
corporate management of Henkel AG & Co. KGaA. These statements are not to be
understood as in any way guaranteeing that those expectations will turn out
to be accurate. Future performance and results actually achieved by Henkel
AG & Co. KGaA and its affiliated companies depend on a number of risks and
uncertainties and may therefore differ materially (both positively and
negatively) from forward-looking statements. Many of these factors are
outside Henkel's control and cannot be accurately estimated in advance, such
as the future economic environment and the actions of competitors and others
involved in the marketplace. Henkel neither plans nor undertakes to update
forward-looking statements.

This document includes supplemental financial indicators that are not
clearly defined in the applicable financial reporting framework and that are
or may be alternative performance measures. These supplemental financial
indicators should not be viewed in isolation or as alternatives to measures
of Henkel's net assets and financial position or results of operations as
presented in accordance with the applicable financial reporting framework in
its Consolidated Financial Statements. Other companies that report or
describe similarly titled alternative performance measures may calculate
them differently.

This document has been issued for information purposes only and is not
intended to constitute investment advice or an offer to sell, or a
solicitation of an offer to buy, any securities.

Financial calendar

Publication of Half-Year Report 2024:
Tuesday, August 13, 2024

Publication of Quarterly Statement Q3 2024:
Wednesday, November 6, 2024

Contact

Investors & Analysts Press & Media

Leslie Iltgen
Phone: +49 211 797-1631
Email: leslie.iltgen@henkel.com

Jennifer Ott
Phone: +49 211 797-2756
Email: jennifer.ott@henkel.com

Dr. Dennis Starke
Phone: +49 211 797-5601
Email: dennis.starke@henkel.com

Dr. Sascha Kieback
Phone: +49 211 797-1810
Email: sascha.kieback@henkel.com


Press & Media

Lars Witteck
Phone: +49 211 797-2606
Email: lars.witteck@henkel.com

Wulf Klüppelholz
Phone: +49 211 797-1875
Email: wulf.klueppelholz@henkel.com

Hanna Philipps
Phone: +49 211 797-3626
Email: hanna.philipps@henkel.com


Further information containing download material, and the link to listen in
on the conference call, are available at:
www.henkel.com/press
www.henkel.com/ir


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   Language:       English
   Company:        Henkel AG & Co. KGaA
                   Henkel Str. 67
                   40191 Düsseldorf
                   Germany
   Phone:          +49 (0)211 797-0
   Fax:            +49 (0)211 798-4008
   E-mail:         press@henkel.com
   Internet:       www.henkel.de
   ISIN:           DE0006048432, DE0006048408
   WKN:            604843, 604840
   Indices:        DAX
   Listed:         Regulated Market in Berlin, Dusseldorf, Frankfurt
                   (Prime Standard), Hamburg, Hanover, Munich, Stuttgart;
                   Regulated Unofficial Market in Tradegate Exchange
   EQS News ID:    1898139

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1898139 08.05.2024 CET/CEST