Germany · Delayed Price · Currency is EUR Henkel AG & Co. KGaA Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw 1.7% organic sales growth, driven by both business units and strong performance in hair care and adhesives. Despite FX headwinds and higher input costs, guidance for the year remains unchanged, supported by M&A, innovation, and disciplined capital allocation.
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The AGM celebrated the company's 150th anniversary, reviewed strong 2025 financials with EUR 20.5 billion in sales, and announced a 1.5% dividend increase. Strategic initiatives included major acquisitions, business unit restructuring, and a continued focus on innovation and sustainability.
Fiscal Year 2025
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Organic sales grew 0.9% in 2025, with EBIT margin and EPS up year-over-year. Early Consumer Brands integration and strong M&A activity supported profitability, while 2026 guidance anticipates further growth despite ongoing volatility.
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Q3 delivered positive organic sales growth in both business units, with strong performance in Adhesive Technologies and a return to positive volume in Consumer Brands. Full-year guidance remains unchanged, though organic sales growth may land at the lower end if economic conditions do not improve.
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Adhesive Technologies reported €11 billion in 2024 sales, a record EBIT, and a 16.6% margin, driven by innovation, sustainability, and a capital-light model. The business targets 3-5% midterm organic growth and high-teen EBIT margins, leveraging both organic and inorganic expansion.
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Adhesive Technologies and Consumer Brands divisions are focusing on global megatrends like mobility, connectivity, digitalization, and urbanization to drive growth.
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Q1 2025 saw organic sales decline by 1% due to negative volumes, but pricing remained positive and supply chain issues were largely resolved. Adhesive Technologies grew 1.1% organically, while Consumer Brands fell 3.5%. Guidance for 2025 is unchanged, with stronger growth expected in the second half.
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The AGM covered board changes, strong financial results with sales of EUR 21.6 billion, and a proposed dividend increase of over 10%. Strategic initiatives focused on innovation, sustainability, and digitalization, with new acquisitions and global gender-neutral parental leave.
Fiscal Year 2024
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Strong 2024 results featured record gross margins, robust organic growth, and significant margin expansion in both business units. Portfolio optimization and early savings delivery supported a 10% dividend hike and a new EUR 1 billion share buyback. 2025 guidance anticipates continued growth despite a challenging macro environment.
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Q3 saw 3.3% organic sales growth, strong gross margins, and robust performance in both Adhesive Technologies and Consumer Brands, with innovation and portfolio optimization driving results. Full-year guidance was reiterated, with confidence in reaching the upper half of earnings targets.
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Strong H1 2024 results with 2.9% organic sales growth, 28.4% higher adjusted operating profit, and raised full-year guidance. Consumer Brands and Adhesive Technologies both delivered margin and profit gains, while strategic exits and innovation drive future growth.