Driven by hair product sales and a new acquisition, Henkel closed Q1 up 3%. Consequently, it slightly raised its 2024 guidance, with strong first-quarter performance boosting its sales and earnings outlook.
Henkel’s results in the first quarter of 2024 confirm a positive trend for most multinationals in hair & beauty. Henkel has therefore raised forecast for the current year to 2.5% – 4.5% from 2% – 4%.
For its consumer brands, the company now expects an organic increase in turnover of between 3% and 5%, from the previous target of 2% – 4%.
In the first quarter of the year, Henkel achieved group sales of approximately €5.3 billion and generated an organic sales growth of 3%.
The increased expectations for 2024 are supported by both business units.
In the Consumer Brands business unit, the implementation of strategic measures and initiatives is having a positive impact on sales, gross margins and earnings. This development is supported by the very strong performance of the Hair business, the continued implementation of portfolio measures and the strong development of core brands and innovations. At the same time, Henkel continues its investments in innovation and particularly in marketing at elevated levels to fuel further growth.
Henkel has also updated its expectations regarding the effects of acquisitions/divestments as well as currencies on sales.
The most recent acquisitions were closed faster than anticipated, thus contributing earlier to sales and earnings development.
“We had a great start to the year. Furthermore, we were able to close the acquisitions of Seal for Life Industries and Vidal Sassoon in China faster than expected, thus further strengthening our businesses,” said Carsten Knobel, CEO of Henkel. “Given these developments, we have revised our revenue and earnings forecasts upwards for 2024. We have a clear strategy and are implementing it rigorously. We do what we promise, and we are on the right path to even more profitable growth.”
At a geographical level, organic turnover grew by 2.5% in the European region, by 3.5% in the Asia-Pacific region and by 26.9% in the IMEA region. However, North America fell by 3% and Latin America by 2.7%
