Henkel expects moderate growth in its financial year 2025 as the company foresees a modest increase in industrial and consumer demand across key segments of its consumer goods business.
The Persil-maker reported organic sales growth of 2.6%, to €21.6 billion, in its full financial year 2024, driven by good price and positive volume growth.
Adjusted operating profit increased by more than a fifth (20.9%), to €3.1 million, while adjusted earnings per preferred share increased by 23.2% to €5.36.
Henkel CEO, Carsten Knobel, stated, “Fiscal 2024 was once again marked by major challenges and many economic uncertainties. Nevertheless, we have consistently advanced Henkel over the past year and reached or even exceeded important milestones.
“Above all, the very good business results for 2024 demonstrate the successful implementation of our purposeful growth agenda.”
Divisional Highlights
Henkel's Adhesive Technologies segment reported organic sales growth of 2.4%, while the Consumer Brands unit achieved organic sales growth of 3.0%.
The Consumer Brands business unit generated €10.5 billion in fiscal 2024, or 0.9% below the prior year in nominal terms, impacted by foreign exchange effects as well as acquisitions and divestitures.
In February of this year, Henkel has agreed to divest its retailer brand business in North America to a New York-based affiliate of First Quality Enterprises, LLC, for an undisclosed sum.
The division's adjusted operating profit amounted to €1.4 billion, up from €1.1 billion in the previous year.
Sales in the Adhesive Technologies business amounted to around €11 billion, reflecting an increase of 1.7% year on year in nominal terms.
Adjusted operating profit saw a double-digit percentage increase year on year, to €1.9 billion, representing a new high for the business unit.
Outlook 2025
Henkel expects organic sales growth in the range of 1.5 and 3.5% in fiscal 2025, with organic growth between 2.0 and 4.0% for the Adhesive Technologies unit and 1.0 and 3.0% for Consumer Brands business.
Adjusted adjusted EBIT margin is expected in the range of 14.0 to 15.5%., while adjusted earnings per preferred share (EPS) at constant exchange rates, is forecast to increase in the low to high single-digit percentage range.
The Schwarzkopf parent foresees volatility and uncertainty related to the overall macroeconomic and geopolitical environment to remain high throughout the year.
