Henkel has released preliminary figures for the first half of 2024, showing strong business performance. Sales reached 10,813 million euros, reflecting a 2.9% organic sales growth. The adjusted return on sales rose to 14.9%, up from 11.5% last year, and adjusted earnings per preferred share increased by 32.9% to 2.78 euros.
Due to this strong performance, Henkel has raised its earnings outlook for 2024. The Consumer Brands business unit is expected to see higher profits, with increased investments in marketing and innovations. Henkel now predicts an adjusted return on sales between 13.5% and 14.5%, up from the previous forecast of 13.0% to 14.0%. Adjusted earnings per preferred share are expected to rise by 20% to 30% at constant exchange rates, up from the earlier estimate of 15% to 25%.
Henkel CEO Carsten Knobel stated that the strong business performance in the first half of the year and the updated fiscal 2024 outlook show that their strategy is effective. Knobel highlighted the success of the consumer business merger and strategic initiatives, which have positively impacted sales, gross margin, and earnings. He noted that increased investments in brands and innovations have been maintained and will continue to grow throughout 2024 to support future growth ambitions. The changes in the adhesives business are also yielding significant results, contributing to Henkel’s strong performance. Knobel affirmed that they are fulfilling their commitments and are on the right path for continued profitable growth.
In the first half of 2024, Henkel’s Adhesive Technologies unit saw sales of 5,475 million euros, with a 2.0% organic growth. The Consumer Brands business unit achieved sales of 5,266 million euros in the first half of 2024, with organic sales growth of 4.3 percent. This growth was primarily driven by a price increase of 5.1 percent.
Due to ongoing portfolio optimization, volume development was slightly negative at -0.9 percent but showed improvement from the first quarter of 2024. The adjusted operating profit was 753 million euros, up 34.7 percent from the same period last year, and the adjusted return on sales rose by 390 basis points to 14.3 percent. Henkel will provide further details on business development for the second quarter and the first half of the year on August 13, 2024, as scheduled.
