Consumer goods giant Henkel has reported sales of approximately €5.4 billion in the third quarter of its financial year, registering a decline of 9%, compared to the same period last year.
Henkel attributed this decline to its exit from business activities in Russia in the second quarter and negative foreign exchange effects.
Adjusted organic sales increased by 2.8% during the quarter, driven by continued strong pricing in its Adhesive Technologies business, as well as its Consumer Brands unit.
Volumes declined year on year, despite noticeable sequential improvement, compared to the second quarter of 2023.
Henkel CEO Carsten Knobel said, “Despite a persistently challenging market environment, we successfully sustained our growth momentum in the third quarter, with both business units contributing.
“Based on this performance, we have today raised our outlook for the current fiscal year. Particularly for adjusted earnings per preferred share, we now expect a significant increase – in the range of 15 to 25% – at constant exchange rates.”
Divisional Performance
The Adhesive Technologies business generated sales of €2.7 billion in the third quarter – down by 9.5%, year on year.
However, the division saw positive organic sales growth in the quarter, driven by the Mobility & Electronics and Craftsmen, Construction & Professional business areas.
Sales at the Consumer Brands unit amounted to €2.7 billion in the third quarter, representing a decline of 7.6% versus the corresponding quarter last year.
Organic sales growth in the division was driven by the Laundry & Home Care and Hair segments.
“In both business units, volume development clearly improved in the third quarter, compared to the previous quarter, which confirms our expectation – as stated when publishing our results for the first half-year – and for the quarter ahead, we expect a further sequential improvement,” Knobel added.
