Since the beginning of 2020, the world has been in the firm grip of the COVID-19 pandemic, challenging societies, economies, businesses, and every single one of us across the globe. The situation is still difficult to predict and challenging. This makes it all the more important that we continue to stand together to further slow down the spread of the corona virus and to master the challenges. Our highest priority remains the well-being of our employees, our customers and our partners. We are doing everything we can to ensure their safety and health, be it on site or working remotely – while at the same time ensuring the continuity of our businesses.
To help addressing this unprecedent challenge, we launched a comprehensive global solidarity program in spring 2020 – including financial donations, product donations, the production of hand disinfectants as well as increased and ongoing safety measures for our employees. We take action to live up to our commitment to contribute – and will continue to do so as long as necessary.
The fight against the corona virus will accompany us for a long time to come. Uncertainty remains in view of rising or high infection rates in many countries. One thing that is certain, however, is that we will adapt again and again during the crisis and respond flexibly and quickly to changes in our markets.
For our customers, partners and suppliers
To prevent the further spread of the coronavirus, we took rapid and comprehensive measures to ensure the safety of our employees, customers, partners and suppliers. Despite the constantly evolving nature of this situation, we are making every effort to mitigate potential shortages and delivery delays and we fully focus on protecting business continuity for you.
You can count on us to leverage our expertise, our multiple-sourcing strategy and our global production network while making every conceivable effort to meet your demand to the greatest extent possible. During the crisis, we always had the vast majority of our manufacturing sites in operation and we did not face any severe supply issues. Today, production at our sites around the world is running normally.
Thanks to the close collaboration with you, our customers, partners and suppliers, and the diligent work of our procurement, supply chain and operations teams, we managed the crisis successfully so far. However, mid-to-long-term assessments remain difficult and we will continue to monitor the situation closely. Based on the experience of the past months and the strong commitment of our entire team, we will continue on our path to best meet your needs in the future.
We hope that your teams and their families stay safe in these more-than-challenging times. We are confident that we will be able to work through this together. In case of questions please reach out to your Henkel contact.
Henkel achieves strong organic sales growth in the third quarter
- Group sales grow organically by 3.9% to around 5 billion euros; nominal -1.5%
- All business units show positive development:
- Adhesive Technologies with positive organic sales growth of 1.3%, nominal -4.8%
- Beauty Care reports very strong organic sales growth of 4.3%, nominal 3.0%
- Laundry & Home Care achieves significant organic sales growth of 7.7%, nominal 0.7%
- Regional sales development shows a differentiated picture: Emerging markets 8.8%, mature markets 0.6%
- New guidance for fiscal 2020 presented in October
Henkel delivers strong organic sales growth in the third quarter and provides new guidance for fiscal 2020
- Strong organic sales growth of +3.9 percent in the third quarter
- All business units report organic sales growth
- Guidance for fiscal 2020:
- Organic sales growth: between -1.0 and -2.0 percent
- Adjusted EBIT margin*: between 13.0 and 13.5 percent
- Adjusted earnings per preferred share (EPS)* at constant exchange rates: decrease in the range between -18 and -22 percent
Henkel delivers overall robust business performance despite substantial impact from COVID-19 pandemic
- Focus on ensuring employee safety, supplying customers and supporting communities
- Group half-year sales reach 9,485 million euros, nominal: -6.0%, organic: -5.2%
- Operating profit* at 1,191 million euros, -27.5%
- EBIT margin* at 12.6%, -370 basis points
- Earnings per preferred share (EPS)*: -29.2% to 1.96 euros, -28.2% at constant exchange rates
- Free cash flow at 938 million euros, net financial position improved
- No new full-year outlook for 2020 due to continuing market uncertainties
- Implementation of new agenda for purposeful growth on track