Henkel Reports Solid Organic Sales Growth and Robust Earnings for H1 2024

Henkel, based in Düsseldorf, announced strong financial results for the first half of 2024. Group sales rose organically by 2.9%, reaching approximately €10.8 billion, despite a nominal decline of 1.0%. Operating profit (EBIT) surged by 28.4% to €1.61 billion, pushing the EBIT margin to 14.9%. Earnings per preferred share (EPS) climbed by 32.9% at constant exchange rates to €2.78.

The company reported a free cash flow of around €800 million, reflecting continued robust cash generation. Henkel's CEO, Carsten Knobel, credited the success to strategic initiatives and the positive impact of merging the consumer businesses. This merger, along with focusing on sustainability and digitalization, contributed significantly to the company's performance.

Regionally, Henkel saw varied results, with the IMEA region achieving the most significant growth at 21.0%. The Adhesive Technologies and Consumer Brands units both reported positive organic sales, bolstered by strong performance in the Mobility & Electronics and Hair business areas.

Looking forward, Henkel has raised its earnings outlook for 2024, anticipating an adjusted return on sales of 13.5 to 14.5%, up from the previous forecast. The company remains committed to its growth strategy and expects to meet its mid- to long-term financial targets sooner than planned.