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Henkel Reports Financial Results for Full Year 2023

Henkel Group sales reached €21,514 million in fiscal 2023, a nominal decrease of -3.9% compared to the prior year. Foreign exchange effects negatively impacted the sales development by -4.3%. At -3.9%, acquisitions/divestments had a negative impact on sales, which was mainly due to the divestment of the business activities in Russia. Organic sales growth was very strong at 4.2%. This development was driven by a price increase in the high single-digit percentage range, while volumes declined. In the second half of the year, however, there was a clear sequential improvement in the volume development.

The Adhesive Technologies business unit generated strong organic sales growth of 3.2%, driven by the business areas of Mobility & Electronics and Craftsmen, Construction & Professional. The Consumer Brands business unit achieved very strong organic sales growth of 6.1%, driven by the Laundry & Home Care and Hair business areas.

Adjusted EBIT significantly increased by 10.2% to €2,556 million compared to €2,319 million the prior year. Positive selling price developments, ongoing measures to reduce costs and enhance production and supply chain efficiency, and portfolio optimization measures more than offset negative impacts on group profitability from continued high prices for direct materials and logistics.

Adjusted EPS also increased significantly by 11.5% to €4.35. At constant exchange rates, adjusted EPS increased by 20%. Net working capital as a percentage of sales amounted to 2.6%, coming in substantially lower than the prior-year level of 4.5%, particularly due to lower inventories. Free cash flow reached a new high of €2,603 million, representing a significant increase compared to the previous year of €653 million. 

Looking forward, moderate growth in global economic output is expected for 2024. This assumes a moderate increase in both industrial demand and consumer demand in key areas of the consumer goods business for Henkel.

Henkel continued to systematically implement its growth strategy in the past fiscal year and made important progress in all areas. The company further developed its business and brand portfolio, strengthened its competitive edge in the areas of innovation, sustainability, and digitalization, optimized its operating models, and strengthened its corporate culture.

“We delivered a strong business performance in 2023, consistently implemented our agenda for purposeful growth in all strategic dimensions and drove forward the transformation of our company. I am firmly convinced that we are well on track and pursuing the right strategy. We can look toward 2024 and the following years with great confidence and are fully committed to delivering on our ambitions,” said Henkel CEO, Carsten Knobel.

To learn more, visit www.henkel.com.

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