Germany
www.henkel.com

Corporate Sales:

$19.7 billion

Beauty Sales:

$4 billion (Skincare: $1.6 billion; Fragrance: $1.5 billion; Color: $997 million)

Key Personnel:

Hans Van Bylen, chief executive officer; Carsten Knobel, executive vice president, finance, chief financial officer; Pascal Houdayer, executive vice president, beauty care.

Major Products/Brands:

Schwarzkopf & Henkel, Schwarzkopf, Syoss, Alterna, Antica Erboristeria, Aok, BonaCure, BlondMe, Color Mask, Clynol, Brilliance, Color Mask, Color Ultime, Country Colors, Fibreplex, Fresh Light, Gliss Kur, Igora, Kenra, Keratin Color, Kit Racines, Konzil, Got2Be, Osis, Sexy Hair products; Diadem, Diadermine skin care; Diosa, Essensity and Nectra Color hair color; Fa, La Toja, Neutromed personal cleansers; Dial; La Chat Soaps, Barnängen.

New Products:

Alterna Bamboo Beach, Gliss Kur Magnificent Strength hair care, Syoss Gloss Sensation hair color, Schwarzkopf Palette Intensive Color Crème, Schauma 7 Blossom Oil, Glam Force, Fa Coconut Water and Coconut Milk shower gels, Dial Soothing Care body care, Diadermine Lift + Super Corrector, Sun Products, Nattura Laboratories.

Comments:

Henkel celebrated 140 years in 2016, and while business was booming in its other segments, the company’s beauty care sales experienced only a +0.1% nudge of upward growth. Henkel’s beauty segment accounted for 20% of the company’s 2016 revenue stream (€3.8 billion). The lynchpin behind the gain was its Schwarzkopf brand, which generated more than €2 billion in sales and is the star of the company’s top 10 beauty brands responsible for delivering more than 90% of Henkel’s beauty division sales.

The company noted weak development in its mature Branded Consumer Goods markets. Specifically, promotional activities and pricing pressures took a bite out of Western European returns. And while Africa/Middle East sales demonstrated continued expansion, growth in Asia, outside Japan, slowed due to weakness in China. The markets in North America and Latin America showed positive momentum.

The company also singled out its professional hairdressing market as “under pressure” in 2016 as customers continued to exhibit restraint. Despite the difficult market environment overall, Henkel said it was able to exceed its previous year sales level and also further extended its position as No. 3 in the world in the hair salon field.

News of Note in 2017

Henkel’s 2017 Q1 beauty care sales rose 6.4% to about $1.1 billion, with a sturdy performance in the company’s North American territory. Emerging markets also took a shine to Henkel’s salon products; beauty sales remained constant in Western Europe.

In September, Henkel added depth to its beauty care business by closing on its acquisition of Nattura Laboratorios, S.A. de C.V., headquartered in Guadalajara, Mexico, with associated companies in the U.S., Colombia and Spain. Delivering on expanded market positions in the U.S. and Mexico, the transaction added a portfolio of brands including Pravana and Tec Italy to Henkel’s core Hair Professional category. In the fiscal year 2016, Nattura Laboratorios generated sales of more than 100 million euros.

Looking Ahead

Sustainability continues to be a key corporate focus for Henkel. As a participant in the New Plastics Economy initiative, in August, Henkel joined forces with partners from across industries to innovate in the design, production and recycling of packaging materials. In one instance, the company collaborated with Ball Corporation to develop a technology that uses up to 25% recycled aluminum in cans for the deodorant sprays from Henkel’s Fa, Souplesse and Neutromed brands.