Henkel has reported a 7.1% increase in group sales in the first quarter of its financial year, with its adhesives and home care businesses driving growth.
The consumer goods giant reported sales of €5.3 billion for the period, in what it described as an 'exceptionally challenging business environment'.
Its Adhesive Technologies business reported double-digit sales growth of 10.7% in the period, while Laundry & Home Care reported growth of 4.9%.
Its Beauty Care business was down 1.2%, however, with the group citing the implementation of planned portfolio measures, including the merger of the Beauty Care and the Home Care business into a unified Henkel Consumer Brands portfolio.
'Testament To Our Growth Agenda'
“This very good sales performance is a testament to our growth agenda as well as the huge dedication of our employees worldwide – and we want to express our gratitude for their great commitment,” commented Henkel CEO Carsten Knobel.
Knobel added that the macroeconomic environment has "continued to deteriorate dramatically" since the start of 2022, with the legacy impact of the COVID-19 crisis coupled with challenges in the raw materials and supply chain sectors.
These have been "drastically exacerbated by the war in Ukraine", he said. Henkel recently announced plans to close its business in Russia.
Henkel Consumer Brands
On the establishment of Henkel Consumer Brands, the group said that the combined business will generate around €500 million in synergy savings in the medium term, with the first phase of the business set to be implemented by the end of 2023.
The Henkel Consumer Brands arm will generate around €10 billion in sales annually, the company added.
"It will offer a broader base to drive the optimisation of our portfolio more consistently and advance the business to a higher growth and margin profile,” said Knobel.
In full-year 2022, Henkel expects to report organic sales growth of between 3.5% and 5.5%, while EBIT margin is expected to come in between 9.0% and 11.0%.