Higher prices save Henkel’s quarter

Henkel raises its outlook for 2023 as its consumer brands showed strong organic sales growth, although this is still entirely due to price increases.

Savings ahead of schedule

Henkel’s sales went up 2.8 % to 5.4 billion euros last quarter, excluding currency effects. That growth was driven by the group’s consumer brands, which recorded a 6.2 % organic sales growth. Meanwhile, the glue division’s organic sales stalled, however it did make a major acquisition with Critica.

The growth is a boost for Henkel, after last year’s major reorganisation in its Consumer Brands division. Now the company proudly announces that more than 80 % of the intended savings will already be achieved by the end of 2023. In particular, the Hair (including Schwarzkopf) and Laundry & Home Care (Persil and others) segments are driving growth today.

Volumes still down

Behind the figures is a more complex reality, however: despite a clear improvement compared to the second quarter, sales volumes continued to fall. Within consumer brands, prices rose by almost 12 % on average, while volumes fell by 5.7 %. Especially in Europe, growth remained limited as a result.

In nominal terms, group sales were even 9 % lower than last year, but this was mainly due to the withdrawal from Russia and negative currency effects. Still, CEO Carsten Knobel raises forecasts for the full financial year and is now counting on a sales growth of 3.5 to 4.5 % in 2023.