Consumer goods giant Henkel has raised its annual earnings outlook after sales grew 2.9% on an organic basis, to €10.8 billion, in the first half of its financial year.
Adjusted operating profit increased by more than a quarter (28.4%), to €1.6 billion, from €1.3 billion in the same period last year, according to preliminary figures published by the company.
The Persil maker raised its adjusted EBIT margin to 13.5% to 14.5% from its previous forecast of 13.0% to 14.0%.
Henkel expects adjusted earnings per preferred share (EPS) to increase by 20.0% to 30.0% at constant exchange rates, up from the previous guidance of 15.0% to 25.0%.
Carsten Knobel, CEO of Henkel, stated, “The overall very good business performance in the first half of the year and the fact that we raised our outlook for fiscal 2024 again clearly demonstrate that we are on the right track with our strategy.”
Divisional Performance
Henkel's Consumer Brands segment saw year-on-year organic sales growth of 4.3%, to €5.3 billion, in the first six months of 2024.
Adjusted operating profit amounted to €753 million, or 34.7% higher than in the year-ago period.
Knobel added, “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.
“In the first half of the year, we have maintained our increased investments in brands and innovations, and we will further increase them over the course of 2024 in order to underpin our ambitions for future growth.”
The Adhesive Technologies unit generated sales worth €5.5 billion, reflecting an increase of 2.0% year on year on an organic basis.
Adjusted operating profit in the division rose 21.8%, to €933 million, compared to €766 million in the first half of 2023.
Both business units benefitted from positive price development of 2.5% in this period. At group level, the company saw a marginal improvement in volume growth (+0.4%).
“The structural and team changes initiated in our adhesives business are also showing tangible results and they are making a significant contribution to Henkel's very strong performance. We are delivering what we have committed to, and we are on the right track for further profitable growth,” Knobel added.
