Henkel reports strong FY24 performance with USD 23B sales amid global economic challenges
GERMANY – Henkel, a German multinational chemical and consumer goods company, has posted a strong financial performance for FY24, achieving total sales of €21.6 billion (US 23.54 billion) despite global economic pressures.
The organic sales growth was 2.6%, driven by good price and positive volume development.
Carsten Knobel, CEO of Henkel, stated, “In 2024, we achieved good organic sales growth and very significantly improved our profitability—with an outstanding margin increase of 2.4% points, supported by an excellent gross margin development and an extraordinary increase in earnings per preferred share of 25%.”
Adjusted operating profit (EBIT) grew by 20.9% to €3.1 billion (US 3.38 billion).
Net income increased by 51.7% to €2.03 billion (US 2.21 billion).
The adjusted EBIT margin increased by 14.3%.
The free cash flow decreased to €2.4 million(USD 2.62 million) compared to €2.6 million(USD 2.83 million) in FY23.
Despite the lower sales, operating profit surged by 69.4%, rising from €753 million (US$821.77 million) to €1.276 billion (US$1.39 billion)due to portfolio shifts and cost-saving initiatives.
The Consumer Brands division’s sales declined slightly by 0.9%, from €10.565 billion (US$11.52 billion) in 2023 to €10.47 billion (US$11.41 billion) in 2024.
According to Henkel, inflation, driving up materials, labour, and logistics costs were among the challenges faced by the company in FY24.
In addition, the company faced supply chain disruptions caused by global instability, production delays, and struggling suppliers.
Henkel anticipates generating 1.5% and 3.5% organic sales growth in the fiscal year 2025, driven by volume and price.
The adjusted return on sales (adjusted EBIT margin) is expected to be 14% to 15.5%.
The interest rates are expected to decrease.
The organic growth of the Consumer Brand segment is anticipated to be between 1.0 – 3%.
The return on sale for the Consumer Brand is expected to be 16- 17.5%.
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