Henkel Group sales grow organically by 2.9 percent in the first half of the year to around € 10.8 billion (nominal -1.0 percent) – growth in both business units. Operating profit (EBIT) witnessed very strong increase to € 1,610 million (+28.4 percent) and EBIT margin also improves very strongly to 14.9 percent (+340 basis points).

“Overall, we achieved a very good business performance in the first half of the year. This demonstrates that we are on the right track with our strategy and that our focus on purposeful growth is delivering tangible success,” said Henkel CEO Carsten Knobel.

“In the first half of the year, organic sales growth and the improvement in earnings were driven by both business units. The merger of our consumer businesses is successful and the implementation of our strategic measures and initiatives has a very positive impact on sales, gross margin and earnings development. Also in our adhesives business where we have aligned the organizational structure even more closely to our customers, the changes we have initiated are significantly contributing to Henkel's positive development. Our free cash flow was also strong, exceeding the already high level from the first half of 2023. All of this allows us to further make targeted investments in our business and our future: in brands, technologies and innovations. In addition, we are driving important initiatives in the areas of sustainability and digitalization to further enhance our competitive position,” Carsten Knobel added.

“Following the strong business performance in the first half of the year, we are confident about the remainder of the year and therefore raised our earnings outlook for fiscal 2024 in mid-July. We are delivering what we have committed to, and we are on the right track for further profitable growth. This is also reflected in the adjustment of our mid- to long-term financial ambition: we are confident that we will achieve the sales and earnings targets now already mid-term.”

Outlook for fiscal 2024

The outlook for the current financial year, which was updated on May 3, 2024, was raised on July 17 regarding the earnings expectation. This is mainly due to higher profit expectations in the Consumer Brands business unit, while at the same time, the company is increasing investments in marketing to support innovations. The outlook continues to consider the expectation of higher prices for direct materials in the second half of the year.

Henkel now expects organic sales growth of 2.5 to 4.5 percent in fiscal 2024. For the Adhesive Technologies business unit, organic sales growth is still expected to be in the range of 2.0 to 4.0 percent, and for the Consumer Brands business unit between 3.0 to 5.0 percent.

Adjusted return on sales (EBIT margin) at Group level is now expected to be in the range of 13.5 to 14.5 percent (previously: 13.0 to 14.0 percent).

For the Adhesive Technologies business unit, adjusted return on sales is still expected in the range of 16.0 and 17.0 percent. For the Consumer Brands business unit, adjusted return on sales is now expected between of 13.0 and 14.0 percent (previously: 12.0 to 13.0 percent).

For the development of adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel now expects an increase in the range of +20.0 to +30.0 percent (previously: +15.0 to +25.0 percent).