Today, Henkel released it financial report of the H1 of 2025. The company recorded Group sales of €10.4 billion, with organic sales nearly flat compared to the prior year (-0.1%), but showing positive momentum in the second quarter with a 0.9% organic increase. This improvement was driven by positive pricing developments across both its business units and a significant volume recovery in Consumer Brands.
Operating profit (EBIT) rose slightly to €1.61 billion, while the EBIT margin improved by 60 basis points to 15.5%. Adjusted earnings per preferred share (EPS) increased by 5.0% at constant exchange rates to €2.81, reflecting solid earnings growth. The increase in profitability was supported by stronger gross margins, a favorable business mix, continued portfolio optimization, and supply chain efficiencies. Henkel also continued to invest in its brands and technologies, strengthening its long-term growth potential.
The Consumer Brands unit showed a notable sequential recovery in Q2, especially in the Hair and Home Care categories, despite facing volume pressure in the North American and European markets during the first quarter. Organic sales growth in the Consumer Brands business unit was -1.6 percent compared to the prior-year period (Q2: +0.4 percent). In nominal terms, sales reached4,907 million euros (Q2: 2,422 million euros), a decrease of -6.8 percent versus the prior-year period. The business unit recorded a good price development compared to the first half of 2024. By contrast, volumes declined, mainly due to a challenging consumer environment in key markets such as North America and Europe.
The Hair business area achieved positive organic sales growth of 0.9 percent in the first six months of the year (Q2: +3.2 percent). The Consumer business achieved good organic sales growth, mainly driven by the very strong development of the Hair Colorants category and the good development of the Hair Styling category. The Professional business recorded a slight decline in organic sales due to the challenging consumer environment, particularly in the North America region.
By region, sales were negatively impacted in Europe and North America, down 1.9% and 3.4% respectively, while emerging markets such as IMEA (+9.1%) and Asia-Pacific (+3.4%) provided strong support to overall performance.
Looking ahead, Henkel updated its full-year outlook to reflect both the improving profitability and more cautious sales expectations. The company now anticipates organic sales growth of 1.0% to 2.0% (revised from 1.5% to 3.5%), and raised its adjusted EBIT margin forecast to 14.5%–15.5% (up from 14.0%–15.5%). EPS is still expected to grow in the low to high single-digit range at constant exchange rates.
CEO Carsten Knobel emphasized Henkel’s ongoing transformation through its Purposeful Growth Agenda and its focus on global megatrends, noting that the company remains on track to achieve or exceed its cost-saving targets, particularly in the Consumer Brands segment.
