Henkel has achieved significant sales and earnings growth in the first half of the year despite the impacts of the global coronavirus crisis that continue to adversely affect the social and economic environment in numerous markets around the world.

Organic sales growth reached 11.3 percent in the first six months of 2021. Group sales amounted to around 10 billion euros, an increase of 4.7 percent in nominal terms.

Adjusted operating profit grew by 20.1 percent to 1,430 million euros and the adjusted EBIT margin recorded an increase of 1.9 percentage points and reached 14.4 percent, an increase of 1.9 percentage points compared to the prior-year period. The effects of higher raw material costs in the first half of the year were offset by very strong volume growth as well as price increases and by strict cost management and efficiency improvements.

Speaking on the results Henkel CEO Carsten Knobel said, "We continued to make good progress in implementing our strategic growth agenda in the first half of the year. As part of our active portfolio management, further brands and businesses were divested or discontinued as planned. At the same time, we made targeted acquisitions, to expand our sustainable brands portfolio. Our special focus for this year is on further strengthening our competitiveness in the areas of innovation, sustainability, and digitalization, and on further developing our company culture. We progressed very well in these areas in the first half of the year and believe we are well on track in implementing our purposeful growth agenda.”

Emerging markets showed an organic sales growth of +21.5 percent. Business in the mature markets showed a very strong organic sales development of +4.5 percent.

Speaking about the outlook for fiscal year 2021 Knobel said, “Taking into account the described environment and based on the very strong performance in the first half, we have updated our full-year guidance today. We have raised our sales forecast and kept our expectations for earnings per share unchanged - despite increasing headwinds from raw material cost inflation.”