Today, Henkel released its first quarter of 2025. Henkel reported consolidated sales of approximately €5.2 billion, marking a slight decrease from €5.3 billion in the same period last year. Organic sales declined by 1.0 percent year-on-year, reflecting the impact of an increasingly volatile geopolitical and macroeconomic environment that has weighed heavily on both industrial demand and consumer confidence, particularly in North America.
The Consumer Brands business recorded sales of €2.48 billion, a year-on-year decline of 4.6%. Within Consumer Brands, the Laundry & Home Care segment posted a -4.1 percent organic sales decline, primarily due to weaker performance in the Fabric Cleaning category, although Fabric Care and Dishwashing saw strong and positive developments respectively. The Hair business area saw a more moderate -1.6 percent organic decline, with growth in Hair Colorants and Hair Styling offset by a downturn in the Professional segment in North America. Other Consumer Businesses, particularly Body Care, recorded a -6.8 percent drop in organic sales, most notably in North America and Europe.
Regionally, all areas except IMEA (India, Middle East, and Africa) saw lower sales compared to Q1 2024. IMEA posted a solid increase, driven by robust growth in Hair and Laundry & Home Care. Europe reported mixed results with strong performance in Hair but a drag from Laundry & Home Care. North America, Asia-Pacific, and Latin America all underperformed, largely due to weaker consumer demand and challenges across product categories.
CEO Carsten Knobel noted that, as anticipated, the year began with a muted performance. Nonetheless, he highlighted Henkel’s strong gross and EBIT margins and reaffirmed the company’s commitment to its strategic growth agenda. Notably, Henkel completed the divestment of its Retailer Brands business in North America ahead of schedule, marking the successful conclusion of its Consumer Brands portfolio optimization program launched in early 2022.
Looking ahead, Henkel maintains its full-year outlook, expecting organic sales growth of 1.5 to 3.5 percent. The company anticipates growth of 2.0 to 4.0 percent in Adhesive Technologies and 1.0 to 3.0 percent in Consumer Brands. Management also expects stronger performance in the second half of 2025, supported by innovation-driven launches and sustained investments in core brands.
