Henkel continues to rely on higher prices

Henkel raises the outlook for 2023. Consumer brands showed strong organic sales growth, although this is still entirely due to price increases.

Savings ahead of schedule

Henkel achieved group turnover of 5.4 billion euros last quarter, good for organic growth without exchange rate effects of 2.8%. The growth is driven by the group’s consumer brands, which recorded organic sales growth of 6.2%. The adhesive department is struggling on the spot (+0.8%), but did so Critics an important acquisition.

The growth is a boost for Henkel, because last year the group carried out a major reorganization in its Consumer Brands department. Now the company is proud to announce that more than 80% of the targeted savings will be achieved by the end of 2023. Especially the Hair segments (eg Schwarzkopf) and Laundry & Home Care (Persil and others) are driving growth today.

Volumes are still declining

Yet behind the figures lies a more complex reality. Despite a clear improvement compared to the second quarter, volume development was negative. Within the consumer brands, prices rose by almost 12% on average, while volumes fell by 5.7%. Growth was therefore limited, especially in Europe.

Nominally, group turnover was even 9% lower than last year, but this is mainly the result of the withdrawal from Russia and the negative exchange rate effects that weighed heavily. CEO Carsten Knobel is once again raising expectations for the entire financial year and is now counting on 3.5 to 4.5% more turnover in 2023.