Henkel Group sales reached around 5 billion euros, an increase of 0.8 percent in nominal terms, significantly impacted by currency headwinds.

Group sales increased nominally by 0.8 percent in the first quarter of 2021, from 4,927 million euros in the first quarter of 2020 to 4,968 million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 7.7 percent.

The emerging markets posted organic sales growth of 18.5 percent in the first quarter whereas organic sales development in the mature markets was positive at 0.5 percent.

“We achieved a very good business performance in the first quarter, to which all our business units contributed. With industrial demand recovering at a stronger rate than originally expected, we are optimistic about business development over the rest of the year, despite the continued uncertainty in our markets. Following the strong start to the year, we have today raised our sales and earnings guidance,” said Carsten Knobel, CEO, Henkel.

“The significant increase in sales in the first quarter was in particular driven by our Adhesive Technologies business unit, which saw a

strong recovery across all business areas and regions, generating double-digit organic sales growth. Our Beauty Care and Laundry & Home Care consumer businesses also generated organic sales growth. From a regional perspective, the very good sales performance in the first quarter was driven primarily by the emerging markets, with all regions posting double-digit organic growth rates,” added Knobel.

The Adhesive Technologies business unit registered significant recovery across all business areas and regions, achieving double-digit organic sales growth overall of 13.0 percent. The Beauty Care business unit, which was affected by pandemic-related market headwinds in the first quarter, generated good organic sales growth of 2.3 percent.

The consumer business area posted a positive performance compared to the same quarter last year. Our Professional business area was also able to achieve organic sales growth, despite the ongoing impact of official closures of hair salons in numerous countries. This was due particularly to the relatively low basis for comparison, with the prior-year quarter having already been heavily impacted by the COVID-19 pandemic.

Despite core mature markets of Laundry & Home Care starting to slow down in the first quarter, the business unit was able to achieve very strong organic sales growth of +4.1 percent, thus continuing its successful development. Both the Home Care business area and the emerging markets posted double-digit growth.

Looking ahead to the rest of fiscal 2021, Knobel said, “After the strong start to the year, we have raised our guidance and now expect higher growth in both sales and earnings for the full year. At Group level, Henkel now anticipates organic sales growth of +4.0 to +6.0 percent and an adjusted return on sales (EBIT margin) in the range of 14.0 to 15.0 percent. For adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel now expects an increase in the high single-digit to mid-teens percentage range.”