Henkel to focus on innovation, sustainability & organic growth
By: ICN Bureau
Last updated : June 22, 2021 8:37 pm
The main elements of this framework are a winning portfolio, competitive edge in the areas of innovation, sustainability and digital as well as future-ready operating models, underpinned by a strong foundation of a collaborative culture and empowered people
Henkel has introduced its new strategic framework for the company's future growth.
“At Henkel, we are building on a strong foundation for the future: strong brands and innovative technologies, attractive businesses with many leading market positions around the world, a highly dedicated team as well as an excellent balance sheet with high cash generation capabilities. However, recently, our overall performance was below our ambitions and the expectations of our shareholders. Going forward, we know we can do better and we will do better,” said Carsten Knobel, Chief Executive Officer of Henkel.
“Based on a thorough analysis of our strengths and need for change, we have developed a new strategic framework for our company. This framework will help us to win the 20s for Henkel with a clear focus on purposeful growth. This means creating superior customer and consumer value to outgrow our markets, reinforcing our leadership in sustainability and enabling our employees to grow, professionally and personally, through their work at Henkel,” Knobel explained further.
“Going forward, our new strategic framework for purposeful growth will drive Henkel’s successful development in the future and will evolve over time. The main elements of this framework are a winning portfolio, competitive edge in the areas of innovation, sustainability and digital as well as future-ready operating models, underpinned by a strong foundation of a collaborative culture and empowered people. Our commitment to purposeful growth is also reflected in our mid- to long-term financial ambition,” summarized Carsten Knobel.
Listed below are some of the key milestones targeted for the proposed growth:
- Setting future direction with new strategic framework
- Rigorously shape a winning portfolio
- Accelerate impactful innovations with increased investments
- Boost sustainability based on strong track record with ambitious targets
- Transform Digital into a customer and consumer value creator
- Reshape operating models to be lean, fast and simple
- Strengthen collaborative culture with empowered people
- Growth agenda underpinned by mid- to long-term financial ambition
- Organic sales growth of 2 – 4%
- Adjusted earnings per preferred share growth in mid- to high single-digit percentage range, at constant exchange rates
- Focus on free cash flow expansion