Consumer goods giant Henkel has reported sales of €6 billion in the third quarter of its financial year, an 'all-time high' for quarterly sales at the company, corresponding to double-digit organic growth of 11.3%.
The good performance was driven by double-digit price developments in all business units and across all regions.
However, volumes were down overall year-on-year, the company noted.
Henkel CEO Carsten Knobel, said, “In a market environment that remains extraordinarily challenging, we continued to drive our strategy execution and achieved clear double-digit sales growth.
"It is particularly gratifying that all business units and regions contributed to this strong business performance, which was driven, in particular, by the clear double-digit increase in sales achieved by the Adhesive Technologies business unit in the third quarter."
Divisional Performance
The company's adhesive technologies business unit reported a double-digit organic sales increase of 16.8% to €3 billion, while the beauty care division saw organic sales growth of 0.9% to €1 billion.
In the laundry and home care division, organic sales increased by 7.3% to €1.9 billion
The company added that it witnessed double-digit sales growth in emerging markets, and 'very strong growth' in mature markets.
In the third quarter, emerging markets posted double-digit organic sales growth of 18.6%, while mature markets recorded organic sales growth of 5.6%.
The Eastern Europe region saw sales increase by 25.2%, while the Africa/Middle East region achieved organic sales growth of 13.2% and 22.5% in the Latin America region. In the Asia-Pacific region, organic sales growth reached 13.0%.
In the Western Europe region, Henkel achieved organic sales growth of 3.9%, while North America saw organic sales up by 7.1% during the quarter.
Raised Outlook
Henkel raised its sales and earnings guidance for 2022 and expects organic sales growth between 7% to 8%, with EBIT margin ranging between 10% and 11%.
Knobel commented, "We are operating in a business environment which is characterised by a high degree of volatility and uncertainty. In this overall inflationary environment with increased raw material and energy costs, we delivered a strong business performance in the first nine months."
© 2022 European Supermarket Magazine. Article by Dayeeta Das. For more A Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
