03.01.22
Global beauty company Henkel has reported organic sales of around 20.1 billion euros ($22.4 billion) in fiscal 2021, representing organic sales growth of 7.8% versus 2020.
A significant recovery in demand in industrial and Hair Salon businesses had a particularly positive effect. In the consumer goods business, demand in many categories returned to more normal patterns compared to the previous year 2020, when demand was particularly strong for hygiene and cleaning products as well as hair colorants while demand for styling products was less strong.
At the same time, the impact of significantly increasing raw material and logistics prices as well as currency effects weighed on profitability in fiscal 2021. Thanks to significantly higher sales volumes, successful price increases, active cost management and ongoing structural adjustments, Henkel was able to more than offset the impact on its earnings.
“Overall, we delivered a good business performance in 2021 and consistently drove the implementation of our strategic agenda forward – despite a very challenging market environment with unprecedented disruptions in global supply chains, a shortage of key raw materials as well as overall significantly increasing prices,” said Henkel CEO Carsten Knobel.
In 2021, Henkel extensively relaunched the hair styling brand Taft as well as the hair colorant brand Igora Royal and successful innovations were launched in the Hair Care segment. Furthermore, the range of the sustainable brand Nature Box has been expanded through further products in solid form and refill packs.
The Laundry & Home Care business unit achieved strong organic sales growth of 3.9 percent. The Adhesive Technologies business unit delivered double-digit organic sales growth of 13.4 percent.
Furthermore, the company aims to deliver on its Purposeful Growth agenda, which saw it announce plans to merge the units Laundry & Home Care and Beauty Care into one new business unit: Henkel Consumer Brands.
Henkel said, “With the new business unit, Henkel will build one multi-category platform for the complete consumer business under one roof, including many iconic brands such as Persil and Schwarzkopf as well as the Hair Professional business. The new business unit will have around 10 billion euros in sales. The merger is designed to drive growth and profitability for the consumer business and the company.”
A significant recovery in demand in industrial and Hair Salon businesses had a particularly positive effect. In the consumer goods business, demand in many categories returned to more normal patterns compared to the previous year 2020, when demand was particularly strong for hygiene and cleaning products as well as hair colorants while demand for styling products was less strong.
At the same time, the impact of significantly increasing raw material and logistics prices as well as currency effects weighed on profitability in fiscal 2021. Thanks to significantly higher sales volumes, successful price increases, active cost management and ongoing structural adjustments, Henkel was able to more than offset the impact on its earnings.
“Overall, we delivered a good business performance in 2021 and consistently drove the implementation of our strategic agenda forward – despite a very challenging market environment with unprecedented disruptions in global supply chains, a shortage of key raw materials as well as overall significantly increasing prices,” said Henkel CEO Carsten Knobel.
Business Segments
In the Beauty Care business unit, sales declined nominally by -2.0 percent in fiscal 2021 to 3,678 million euros ($4,097 million). Organically, sales increased by 1.4 percent. This was due to different developments. While the significant recovery in the hair salon business had a positive effect, the consumer business was impacted by a normalization of demand in the body care category and recorded a declining development.In 2021, Henkel extensively relaunched the hair styling brand Taft as well as the hair colorant brand Igora Royal and successful innovations were launched in the Hair Care segment. Furthermore, the range of the sustainable brand Nature Box has been expanded through further products in solid form and refill packs.
The Laundry & Home Care business unit achieved strong organic sales growth of 3.9 percent. The Adhesive Technologies business unit delivered double-digit organic sales growth of 13.4 percent.
Outlook
Considering high market uncertainty and volatility and the impact of further substantial increases in raw material and logistics costs, the company expects organic sales growth in the range of 2 to 4 percent, and an adjusted return on sales (EBIT margin) between 11.5 and 13.5 percent in fiscal year 2022.Furthermore, the company aims to deliver on its Purposeful Growth agenda, which saw it announce plans to merge the units Laundry & Home Care and Beauty Care into one new business unit: Henkel Consumer Brands.
Henkel said, “With the new business unit, Henkel will build one multi-category platform for the complete consumer business under one roof, including many iconic brands such as Persil and Schwarzkopf as well as the Hair Professional business. The new business unit will have around 10 billion euros in sales. The merger is designed to drive growth and profitability for the consumer business and the company.”