In Q1 2024, Henkel recorded Group sales of approximately 5.3 billion euros, organic sales growth of 3%. This growth was primarily fueled by positive price trends across both business segments. Despite ongoing portfolio adjustments affecting the Consumer Brands unit, the overall volume performance at the Group level showed continued improvement compared to Q4 2023. However, nominal sales were down by 5.2% year-on-year, mainly attributed to divestments in Russia and adverse foreign exchange impacts.
Carsten Knobel, CEO of Henkel said, “We had a very good start to the year. In addition, we were able to close the acquisitions of Seal for Life Industries and Vidal Sassoon in China faster than anticipated and will thus further strengthen our businesses. In light of these developments, we significantly raised our sales and earnings outlook for 2024 last week. This demonstrates: We have a clear strategy which we are executing on stringently. We deliver on what we have promised. And we are on the right track for further profitable growth.”
In the first quarter, organic sales growth in Europe stood at 2.5%, while the IMEA region saw a significant increase of 26.9%. Conversely, the North America region experienced a decline in organic sales of 3.0 %. Latin America witnessed a decrease of 2.7% in organic sales compared to the same quarter last year. On the other hand, the Asia-Pacific region achieved organic sales growth of 3.5%.
In the first quarter of 2024, the Adhesive Technologies business unit recorded sales of 2,677 million euros, marking a nominal decrease of .1% compared to the same period last year (2,791 million euros). However, when adjusted for foreign exchange fluctuations and acquisitions/divestments, organic sales increased by 1.3 % year-on-year. Both pricing and volume demonstrated positive growth. Foreign exchange impacts accounted for a sales reduction of -3.8 %, while acquisitions/divestments contributed to a further negative effect of 1.7%.
In the first quarter of 2024, sales in the Consumer Brands business unit reached 2,605 million euros, marking a nominal decrease of -6.0 % compared to the same period last year. However, when adjusted for foreign exchange impacts and acquisitions/divestments, organic sales increased by 5.2%. Strong pricing was observed in the business unit, although volumes experienced a slight decline, largely due to ongoing portfolio adjustments. Foreign exchange fluctuations negatively impacted sales by 4.0%, while acquisitions/divestments further reduced sales by 7.2%.
During the same period, the Laundry & Home Care business area achieved robust organic sales growth of 4.6%. Notably, the Laundry segment saw significant growth, primarily attributed to a double-digit increase in Fabric Care. Similarly, the Home Care segment experienced substantial organic sales growth, particularly driven by double-digit increases in Toilet Care and strong growth in Dishwashing.
In the Hair business area, organic sales growth was very strong at 6.9%. Consumer business growth was notable, especially in the Hair Styling category. Additionally, the Professional business achieved significant organic sales growth during the period.
Additionally, Henkel recently announced the completion of the acquisition of the Vidal Sassoon brand and the related hair care business in Greater China, a business that holds a significant position in the Chinese market and achieved sales of over 200 million euros in the 2022/2023 fiscal year.
Henkel stated that this acquisition aligns with the company’s strategic focus of expanding its footprint in the hair care sector beyond its existing brands. Schwarzkopf, as an internationally renowned hair care brand, is known for its salon-inspired image in the retail market. Its addition will complement Henkel’s portfolio of consumer brands in the local market and address the gap in the premium hair care segment.
