Henkel delivers strong organic sales growth in 2023
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Henkel delivers strong organic sales growth in 2023

Accelerated implementation of strategic growth agenda in a challenging environment

  • By ICN Bureau | March 07, 2024

Despite market challenges, Henkel achieved robust growth and improved profitability in 2023, surpassing initial forecasts, Carsten Knobel, CEO, Henkel, said. 

"We experienced strong organic sales growth, particularly in Adhesive Technologies and Consumer Brands. The integration of Laundry & Home Care and Beauty Care into the new Consumer Brands unit progressed ahead of schedule, contributing to our overall performance. In Adhesive Technologies, organizational realignment and customer-centric approaches drove sales and earnings growth amidst industrial volatility. Strategic acquisitions further bolstered both business units. I would like to sincerely thank all Henkel employees for your teamwork and dedication which enabled us to navigate our company through these challenging times.”

Henkel Group sales reached 21,514 million euros in fiscal 2023, a nominal decrease of -3.9 percent compared to the prior year. Foreign exchange effects negatively impacted the sales development by -4.3 percent. At -3.9 percent, acquisitions/divestments had a negative impact on sales, which was mainly due to the divestment of the business activities in Russia. Organic sales growth was very strong at 4.2 percent. This development was driven by a price increase in the high single-digit percentage range, while volumes declined. In the second half of the year, however, there was a clear sequential improvement in the volume development.

Henkel expects to generate organic sales growth of between 2.0 and 4.0 percent in fiscal 2024, with both business units anticipated to grow within this range. Adjusted return on sales (adjusted EBIT margin) is expected in the range of 12.0 to 13.5 percent. For adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel expects an increase in the range of +5.0 to +20.0 percent.

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