In the first half of 2022, Henkel increased group sales to around €10.9 billion. This corresponds to significant organic sales growth of 8.9%. This positive development was driven by all business units and regions. As expected, the earnings in the first half of the year were impacted by the drastic rise in material and logistics prices. Strict cost management and further efficiency improvements contracted these significant price increases.
“In a very challenging environment, sales performance in the first six months exceeded the previous expectations for the full year, while earnings developed in line with our Group guidance for fiscal 2022. In view of this development, we have raised our full-year guidance for organic sales growth for the Group and confirmed our guidance for the EBIT margin and earnings per preferred share,” said Henkel CEO Carsten Knobel.
Henkel now expects organic sales growth of 4.5 to 6.5% in fiscal 2022 (previously: 3.5 to 5.5%). Organic sales growth of 8 to 10% is still expected for the Adhesive Technologies business unit. Sales growth in the first half of the year was mainly driven by the Adhesive Technologies business unit, which achieved a double-digit organic increase of 12.2%. Sales of the Adhesive Technologies business unit increased nominally by 15% to €5,467 million (Q2: €2,836 million, 18.5%).
Henkel made further progress in sustainability in the first half of 2022. On the way to achieving the goal of a climate-positive CO2 balance for its production sites by 2030, Henkel has converted three additional sites in Europe to operate with 100% CO2-neutral energy. In addition, Henkel continues to consistently rely on renewable raw materials. Through a partnership with BASF, around 110,000 tons of fossil-based materials are replaced with renewable carbon sources.
“Although we were confronted with the effects of the COVID pandemic as well as the war in Ukraine, we significantly increased our organic and reported sales in the first half of the year. As expected, our results were impacted above all by the drastic increase in raw material and logistics costs. This is also reflected in our updated outlook for fiscal 2022,“ said Knobel. “We are proud of the good progress we have made in implementing our strategic agenda for purposeful growth and we will continue to consistently pursue our strategy in this overall challenging environment.”
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