In the third quarter of 2021, Henkel reports that it continued on its growth path and achieved total sales of around €5.1 billion (approximately $5.9 billion). This corresponds to organic sales growth of 3.5%, driven in particular by positive pricing in all business units. The stable volume development was characterized by a normalization of demand in consumer businesses and by the ongoing recovery in industrial production. In nominal terms, sales increased by 1.9%.
"The effects of the global corona crisis, the extremely tense situation on raw material markets and disruptions in global supply chains continued to have a strong impact on our market environment in the third quarter," said Carsten Knobel, CEO. "Nevertheless, Henkel achieved a good business performance. Comparing this development to the pre-crisis level in the third quarter of 2019, we achieved an average annual organic growth rate of +3.7 percent. All business units exceeded the respective pre-crisis level.
"Successful innovations, particularly in the area of sustainability, and the further expansion of our digital business activities were important growth drivers. The strong organic sales increase in the third quarter is also a testament to our robust and balanced portfolio of successful brands and innovative technologies. It is, above all, the result of the strong performance by our global team, which is contributing with great commitment to Henkel's long-term success in these challenging times."
The strong sales growth in the third quarter was driven predominantly by the Adhesive Technologies business unit. Three of its four business areas achieved strong or double-digit organic sales growth, while the Automotive & Metals business area recorded a slightly negative development.
From a regional perspective, Henkel achieved organic sales growth in all regions in the third quarter, with the exception of North America. The group's sales performance was mainly driven by emerging markets, which recorded high-single-digit organic growth.
"While the coronavirus pandemic continues, we have to constantly respond flexibly and quickly to changes in our markets," Knobel said. "Tight supply chains and rising raw material and transport costs are proving to be particularly challenging. Despite these difficult conditions which require our full attention, we stay focused on our strategic priorities to deliver on our purposeful growth agenda."
Sales in the Adhesive Technologies business unit increased by 7.1% to about €2.4 billion (~ $2.8 billion) in the third quarter of 2021. Organically, sales grew by 7%, with volume and prices contributing equally to the increase.
Developments in the individual business areas of the Adhesive Technologies business unit varied. Organic sales development in Automotive & Metals was slightly lower compared to the 2020 third quarter, as business was negatively impacted by lower automotive production levels that were mainly caused by the global shortage of semiconductors.
The Electronics & Industrials business area achieved double-digit organic sales growth in both businesses. The Packaging & Consumer Goods business area benefited from ongoing high customer demand and also generated double-digit sales growth, driven particularly by the Packaging and Lifestyle businesses.
Organic sales growth in the Craftsmen, Construction & Professional business area was strong compared to the third quarter of the prior year. Performance in the Consumers & Craftsmen business was negative following double-digit growth in the prior-year quarter. This was more than offset by the growth in the Construction and General Manufacturing & Maintenance businesses.
From a regional perspective, sales generated by Adhesive Technologies in the emerging markets were significantly higher than in the third quarter of the prior year. The Eastern Europe and Latin America regions recorded double-digit growth, particularly driven by the Packaging & Consumer Goods business area. The Africa/Middle East and Asia (excluding Japan) regions generated a strong sales increase.
Additional details are available at www.henkel.com.