- Implementation of new organizational structure in the Consumer Brands business unit ahead of plan
- Continued strong organic sales performance at Adhesive Technologies
- Outlook for organic sales growth for Henkel in fiscal 2022 increased:
+5.5 to +7.5 percent (previously +4.5 to +6.5 percent)
- Adhesive Technologies and Consumer Brands well positioned for capturing future growth and profit opportunities
- Confirmation of mid- to long-term financial ambition
At today's Capital Markets Day, Henkel's Management Board jointly presented the successes made in implementing the purposeful growth agenda, highlighting the growth and earnings potential of the two business units, Adhesive Technologies and the future Consumer Brands business. In implementing the new organizational structure, Henkel is already ahead of the originally announced timeframe. Henkel also raised the sales guidance for the full year 2022 for both the Adhesive Technologies business unit, which continues its strong organic sales growth also in the third quarter, and for the Henkel Group.
The focus of the Capital Markets Day was on the two business units Adhesive Technologies and Consumer Brands with their respective strategic direction, technological competence, and attractive businesses with global leading brands. In addition, the clear focus on sustainability in all dimensions was reaffirmed as a success factor for the implementation of the company's purposeful growth agenda – both for the individual business units as well as on Group level.
Outlook for organic sales growth for fiscal year 2022 raised
In addition to presenting the progress made in implementing the strategy and the set-up of the two business units, Henkel has also raised its outlook for fiscal 2022.
"In view of the continued strong sales growth in Adhesive Technologies, today we have updated the outlook for fiscal 2022 for both the Adhesive Technologies business unit and the Henkel Group. In addition, we are continuing to work intensively on comprehensive measures to compensate as far as possible the impact of the drastic increase in raw material, logistics and energy costs on our earnings development," said Henkel CEO Carsten Knobel.
Henkel now expects organic sales growth of +5.5 to +7.5 percent at Group level in fiscal 2022 (previously: +4.5 to +6.5 percent). Organic sales growth of +10.0 to +12.0 percent is now expected for the Adhesive Technologies business unit (previously: +8.0 to +10.0 percent). For Beauty Care, Henkel continues to expect organic sales growth of -3.0 to -1.0 percent, in particular due to the implementation of the portfolio measures announced for 2022. For the Laundry & Home Care business unit, Henkel continues to expect organic sales growth of +4.0 to +6.0 percent.
The expectation for adjusted return on sales (EBIT margin) at Group level remains unchanged in the range of 9.0 to 11.0 percent. For the development of adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel continues to expect a decline in the range of -35 to -15 percent.
Consistent implementation of the purposeful growth agenda
Henkel is pursuing an agenda for purposeful growth and has developed a clear strategic framework for this. Key elements of the strategic framework are a successful portfolio, clear competitive edge in the areas of innovation, sustainability, and digitalization as well as future-ready operating models based on a strong company culture.
In the course of 2022, Henkel continued to work consistently on the implementation of its growth agenda and made significant progress in all areas. With the announcement to merge Laundry & Home Care and Beauty Care into a new business unit Consumer Brands, Henkel is taking its purposeful growth agenda to the next level.
In implementing the new organizational structure of Consumer Brands, Henkel is ahead of the originally announced timeframe in most regions. As part of the merger, Wolfgang König, who is currently responsible for Beauty Care on the Management Board and will head the new unit in the future, will also take over the management of Laundry & Home Care as of October 2022. Bruno Piacenza, who has been responsible for the Laundry & Home Care business unit since 2011, will leave the Management Board at the end of September. Henkel CEO Carsten Knobel expressly thanked him for his great achievements in more than 30 years of service for Henkel.
"Since 2020, we have successfully and consistently driven forward the implementation of our strategic agenda for purposeful growth, despite an extremely difficult environment marked by the covid pandemic and the war in Ukraine. On this basis, we are looking ahead. With our Adhesive Technologies business, we are the global leader, offering innovative solutions for a wide range of industries, focusing on mega trends such as sustainability, e-mobility and connectivity. The merger of the Laundry & Home Care and Beauty Care businesses to Consumer Brands is an important strategic step for us. We are now creating a globally present multicategory platform with strong brands and world-leading market and category positions to increase the future growth and margin profile of our consumer businesses. I am convinced that with our two strong pillars, Adhesive Technologies and Consumer Brands, we will achieve our ambitious goals and continue to successfully implement our purposeful growth agenda with great emphasis," said Henkel CEO Carsten Knobel.
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 the 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.
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