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
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
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
1By 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 prioryear 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
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
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
AsiaPacific 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 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
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:
