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Henkel AG & Co. KGaA (HEN3.DE)

XETRA - XETRA Delayed price. Currency in EUR
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89.70+0.46 (+0.52%)
As of 1:39PM CEST. Market open.
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Previous close89.24
Open89.40
Bid89.68 x 43400
Ask89.72 x 6700
Day's range89.24 - 89.92
52-week range78.84 - 99.50
Volume110,411
Avg. volume447,595
Market cap36.218B
Beta (5Y monthly)0.60
PE ratio (TTM)27.67
EPS (TTM)3.24
Earnings date12 Aug 2021
Forward dividend & yield1.85 (2.07%)
Ex-dividend date19 Apr 2021
1y target est113.79
  • EQS Group

    Henkel AG & Co. KGaA: Henkel reports strong start to fiscal 2021

    DGAP-News: Henkel AG & Co. KGaA / Key word(s): Quarter Results06.05.2021 / 07:31 The issuer is solely responsible for the content of this announcement.Guidance for fiscal 2021 raised: higher sales and earnings growth expectedHenkel reports strong start to fiscal 2021- Group sales show significant organic growth of +7.7 percent to around 5 billion euros, nominal growth of +0.8 percent adversely affected by currency headwinds- All business units report organic sales growth:- Adhesive Technologies with double-digit organic sales growth of +13.0 percent, nominal +6.7 percent- Beauty Care reports good organic sales growth of +2.3 percent, nominal -1.1 percent- Laundry & Home Care records very strong organic sales growth of +4.1 percent, nominal -5.6 percent- Emerging markets with double-digit organic sales growth of +18.5 percent, mature markets grow +0.5 percent- Henkel raises guidance for fiscal 2021:- Organic sales growth: +4.0 to +6.0 percent- EBIT margin*: 14.0 to 15.0 percent- Earnings per preferred share (EPS)*: Increase in the high single-digit to mid-teens percentage range at constant exchange ratesDüsseldorf, May 6, 2021 - Henkel reports a very good start to fiscal 2021 overall, achieving significant organic sales growth of +7.7 percent in the first quarter - despite the impacts of the global coronavirus crisis that continue to adversely affect the social and economic environment in numerous markets around the world. Group sales reached around 5 billion euros, an increase of +0.8 percent in nominal terms, significantly impacted by currency headwinds."We achieved a very good business performance in the first quarter, to which all our business units contributed. With industrial demand recovering at a stronger rate than originally expected, we are optimistic about business development over the rest of the year, despite the continued uncertainty in our markets. Following the strong start to the year, we have today raised our sales and earnings guidance," said Henkel CEO Carsten Knobel."The significant increase in sales in the first quarter was in particular driven by our Adhesive Technologies business unit, which saw a strong recovery across all business areas and regions, generating double-digit organic sales growth. Our Beauty Care and Laundry & Home Care consumer businesses also generated organic sales growth. From a regional perspective, the very good sales performance in the first quarter was driven primarily by the emerging markets, with all regions posting double-digit organic growth rates," Knobel added. "Henkel's performance in the first quarter is testament to our robust and balanced portfolio with successful brands and innovative technologies for our customers in the industrial and consumer businesses. At the same time, the very good development overall in the first quarter is also the result of our strong global team, which - in this unprecedented and challenging time for all of us - is showing enormous commitment as it continues to contribute to the long-term success of Henkel."The Adhesive Technologies business unit registered significant recovery across all business areas and regions, achieving double-digit organic sales growth overall of +13.0 percent.The Beauty Care business unit, which was affected by pandemic-related market headwinds in the first quarter, generated good organic sales growth of +2.3 percent. The Consumer business area posted a positive performance compared to the same quarter last year. Our Professional business area was also able to achieve organic sales growth, despite the ongoing impact of official closures of hair salons in numerous countries. This was due particularly to the relatively low basis for comparison, with the prior-year quarter having already been heavily impacted by the COVID-19 pandemic.Despite core mature markets of Laundry & Home Care starting to slow down in the first quarter, the business unit was able to achieve very strong organic sales growth of +4.1 percent, thus continuing its successful development. Both the Home Care business area and the emerging markets posted double-digit growth.Looking ahead to the rest of fiscal 2021, Knobel said: "After the strong start to the year, we have raised our guidance and now expect higher growth in both sales and earnings for the full year. At Group level, Henkel now anticipates organic sales growth of +4.0 to +6.0 percent and an adjusted return on sales (EBIT margin) in the range of 14.0 to 15.0 percent. For adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel now expects an increase in the high single-digit to mid-teens percentage range.""Nevertheless, there is still great uncertainty as to how the pandemic will develop and how consumption and industrial output will be impacted. We will continue to respond flexibly and quickly to changes in our markets. At the same time, we are vigorously driving the implementation of our growth agenda. Our focus is on two areas: Firstly, we want to expand our competitive edge by further strengthening innovation, sustainability and digitalization. Secondly, we want to further enhance our company culture. With our strategic framework for purposeful growth and our strong global team, we are well prepared to emerge stronger from the crisis and to shape our future."Group sales performanceGroup sales increased nominally by +0.8 percent in the first quarter of 2021, from 4,927 million euros in the first quarter of 2020 to 4,968 million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by +7.7 percent. At Group level, the increase was driven primarily by volume. The contribution from acquisitions and divestments amounted to +0.6 percent. Foreign exchange effects had a strongly negative impact of -7.5 percent on sales. Group sales performance1 in million euros Q1/2021 Sales 4,968 Change versus previous year 0.8% Foreign exchange -7.5% Adjusted for foreign exchange 8.3% Acquisitions/divestments 0.6% Organic 7.7% Of which price 1.7% Of which volume 6.0% 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. The emerging markets posted organic sales growth of +18.5 percent in the first quarter. Organic sales development in the mature markets was positive at +0.5 percent. Year on year, organic sales in the Western Europe region were up +0.9 percent. We posted sales growth of +11.7 percent in the Eastern Europe region. Organic sales growth was +21.7 percent in the Africa/Middle East region in the first quarter of 2021. Organic sales performance was flat in the North America region, whereas we achieved organic sales growth of +10.7 percent in the Latin America region. Organic sales growth in the Asia-Pacific region was in the double digits at +24.4 percent. Sales performance by region1 in million euros Western Europe Eastern Europe Africa/ Middle East North America Latin America Asia- Pacific Corporate Henkel Group Sales² January-March 2021 1,528 742 319 1,234 280 837 30 4,968 Sales² January-March 2020 1,500 758 349 1,302 292 697 29 4,927 Change versus prior-year quarter 1.9% -2.1% -8.7% -5.3% -4.4% 20.1% - 0.8% Organic 0.9% 11.7% 21.7% 0.0% 10.7% 24.4% - 7.7% Proportion of Group sales 2021 31% 15% 6% 25% 6% 17% 1% 100% Proportion of Group sales 2020 30% 15% 7% 26% 6% 14% 1% 100% 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. ²By location of company. Sales performance Adhesive TechnologiesIn the first quarter of 2021, sales in the Adhesive Technologies business unit increasednominally by +6.7 percent from 2,209 million euros in the prior-year quarter to 2,358 million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by +13.0 percent. Performance in the first quarter was driven by significant ongoing recovery in industrial production. Volume growth was in the double-digit range, with price trends on a slightly positive upward curve. Foreign exchange effects reduced sales by-6.7 percent, while acquisitions/divestments increased sales by +0.5 percent. Sales performance Adhesive Technologies1 in million euros Q1/2021 Sales 2,358 Proportion of Group sales 47% Change versus previous year 6.7% Foreign exchange -6.7% Adjusted for foreign exchange 13.5% Acquisitions/divestments 0.5% Organic 13.0% Of which price 0.8% Of which volume 12.2% 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. All Adhesive Technologies business areas continued their significant recovery in the first quarter compared to the same quarter last year, the latter having already been impacted by the COVID-19 pandemic. Automotive & Metals posted double-digit organic sales growth, due primarily to the strong increase in global automobile production. Electronics & Industrials also generated double-digit organic sales growth, mainly thanks to the performance of our Electronics business, although the Industrials business area also posted a very strong increase. Packaging & Consumer Goods reported significant organic sales growth in the first quarter, supported by double-digit percentage increases in our Packaging and Lifestyle businesses. Organic sales growth was also in the double-digit range in Craftsmen, Construction & Professional, primarily driven by the consumer and craftsmen businesses together with our activities in the mechanical engineering and maintenance segments.The regional breakdown shows the Adhesive Technologies business unit generating double-digit organic sales growth in the emerging markets. All emerging market regions contributed to this performance across all business areas.Organic sales development in the mature markets was very strong overall. The North America region posted very strong growth, driven by double-digit organic sales growth in Craftsmen, Construction & Professional and very strong sales growth in Electronics & Industrials. Organic sales growth in the Western Europe region was strong thanks to a double-digit improvement in Craftsmen, Construction & Professional and a very strong increase in Automotive & Metals.Sales performance Beauty CareThe first quarter of 2021 saw sales in the Beauty Care business unit decrease slightly in nominal terms with a decline of -1.1 percent to 925 million euros (Q1 2020: 935 million euros). Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by +2.3 percent. This performance was driven by both volume and price. Foreign exchange effects reduced sales by -5.4 percent. Acquisitions/divestments contributed +2.0 percent to sales growth. Sales performance Beauty Care1 in million euros Q1/2021 Sales 925 Proportion of Group sales 19% Change versus previous year -1.1% Foreign exchange -5.4% Adjusted for foreign exchange 4.3% Acquisitions/divestments 2.0% Organic 2.3% Of which price 1.0% Of which volume 1.3% 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. Organic sales development in the Consumer business area was positive compared to the prior-year quarter. The Hair Cosmetics category was able to continue the positive trend from the final quarter of 2020 with a very strong performance in the first quarter of 2021. Hair Colorants posted double-digit growth, while Hair Care sales were also very strong. Hair Styling sales were down on the prior-year figures due to weaker consumer demand related to the pandemic. In terms of organic sales development, Body Care also fell short of the very strong growth generated in the first quarter of 2020, due mainly to declining demand in key markets.Despite the ongoing burden of official closures of hair salons in numerous countries, our Professional business area posted very strong organic sales growth in the first quarter of 2021. This was driven primarily by a significant increase in our core market of North America, but was also due to a relatively low basis for comparison from the prior-year quarter after the heavily negative impact of the COVID-19 pandemic. Growth was in the double-digit percentage range in the Latin America and Asia (excluding Japan) regions, and significant in the Africa/Middle East region. By contrast, performance in the Western and Eastern Europe regions fell short of the prior-year quarter mainly as a result of the continued closure of hair salons due to the pandemic.In regional terms, organic sales growth in the Beauty Care business unit was in the double-digit percentage range in the emerging markets, driven by very strong performance in both the Consumer and the Professional business areas. The Asia (excluding Japan) region, and particularly China, contributed to this performance with growth in the double-digit percentage range. The Latin America region also generated a double-digit increase in sales, while sales growth was very strong in the Eastern Europe region. By contrast, the Africa/Middle East region posted negative sales development.Organic sales development was negative overall in the mature markets. Organic sales growth was good in the North America region - due to the increase in the Professional business area - and very strong in the mature markets of the Asia-Pacific region. By contrast, performance in Western Europe fell short of the prior-year quarter in a market environment that remained challenging and was characterized, among other things, by ongoing restrictions due to the COVID-19 pandemic.Sales performance Laundry & Home CareThe Laundry & Home Care business unit generated sales of 1,656 million euros in the first quarter of 2021, a nominal decrease of -5.6 percent from the 1,755 million euros achieved in the prior-year quarter. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), the business unit posted a very strong increase in sales of +4.1 percent. Growth was largely driven by price, with volumes also showing a positive increase. Foreign exchange effects reduced sales by a significant -9.6 percent. Acquisitions/divestments had no material impact on sales performance. Sales performance Laundry & Home Care¹ in million euros Q1/2021 Sales 1,656 Proportion of Group sales 33% Change versus previous year -5.6% Foreign exchange -9.6% Adjusted for foreign exchange 4.0% Acquisitions/divestments 0.0% Organic 4.1% Of which price 3.1% Of which volume 0.9% 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. The Laundry Care business area generated positive organic sales growth in the first quarter, to which specialty detergents contributed with a good performance and laundry additives with a very strong improvement. Our core brand Persil again posted double-digit organic sales growth, not least as a result of our continued innovation initiatives.Organic sales growth in the Home Care business area was in the double-digit percentage range. The strong growth of this business area was substantially due to the performance of our brand families Pril, Bref and Somat, all of which posted double-digit increases in their respective categories of dishwashing products, toilet cleaners and hard surface cleaners. The trend was helped both by increased demand for household cleaners as a result of the pandemic, and by our successful product innovations. The emerging markets were the main driver of the very strong sales performance of this business unit, contributing double-digit organic sales growth. Henkel achieved double-digit percentage increases in sales in both the Africa/Middle East and the Asia (excluding Japan) regions. Organic sales growth was significant in Eastern Europe, while Latin America posted negative sales development.Performance in the mature markets was negative overall. Sales performance in Western Europe was good, and the mature markets in the Asia-Pacific region generated positive organic growth, whereas the North America region fell short of the prior-year quarter. Here our business was adversely affected by supply shortages as well as by slowing market dynamics compared to the previous year.Net assets and financial position of the GroupNo substantial changes to the net assets and financial position of the Group occurred in the period under review compared to December 31, 2020.Outlook for the Henkel GroupBased on business development in the first three months of 2021 and the assumptionsregarding business performance in the remaining three quarters, the Management Board of Henkel AG & Co. KGaA has decided to raise its guidance for fiscal 2021.Following the sharp decline in global economic growth in 2020 resulting from the COVID-19 pandemic, it is assumed based on current estimates that industrial demand will recover significantly in 2021 and that demand for numerous categories of consumer goods will return to normal as the year progresses. At the same time, uncertainty prevails about the further development of infection rates and vaccination progress, and thus of the restrictions imposed to contain the pandemic.Given these circumstances, our guidance is based on the assumption that industrial demand and areas of the consumer goods business of relevance to Henkel - the hair salon business in particular - will recover, in some cases significantly. We expect those categories in our consumer goods businesses that witnessed increased demand in 2020 in the wake of the pandemic to return to normal as the year progresses. We further assume that there will be no widespread closures of retail and industrial businesses or production facilities in our core regions - unlike the second quarter of 2020 in particular - as the year progresses.Taking these factors into account, we expect the Henkel Group to generate organic sales growth of between +4.0 and +6.0 percent in fiscal 2021 (previous guidance: +2.0 to +5.0 percent). For the Adhesive Technologies business unit, the performance of which is, to a large extent, dependent on the recovery in industrial demand, we expect organic sales growth to range between +7.0 and +9.0 percent (previous guidance: +2.0 to +6.0 percent). For the Beauty Care business unit, we currently anticipate organic sales growth in the range between +2.0 and +6.0 percent (unchanged). On a full-year basis, a significant increase in demand in the Professional business should have a positive effect, while continued growth is expected in our Consumer business. We expect the Laundry & Home Care business unit to achieve organic sales growth of between +1.0 and +3.0 percent (unchanged). Here, the higher demand witnessed in some categories in the previous year as a result of the pandemic is expected to return to normal levels over the course of the year, with an effect on organic growth.We expect the contribution to nominal sales growth of the Henkel Group from our acquisitions in 2020 to be in the low single-digit percentage range. Our guidance does not reflect any effects from the intended divestment or discontinuation of business activities, brands and categories as part of our active portfolio management over the rest of the year, since it is not possible to reliably predict if and when such activities will actually occur. The translation of sales in foreign currencies is expected to have a negative effect in the mid-single-digit percentage range.The anticipated recovery in demand, particularly in our industrial and Professional businesses, is expected to have a positive effect on Henkel's earnings performance in 2021. This is likely to be offset to some degree by countervailing effects arising from prices for direct materials, which we assume will rise significantly with increases in the upper mid-single-digit percentage range (previous guidance: low to mid-single-digit percentage range), and from adverse changes in foreign currency exchange rates.We expect the Henkel Group to generate an adjusted return on sales (EBIT margin) of between 14.0 and 15.0 percent (previous guidance: 13.5 to 14.5 percent). We expect adjusted return on sales for the Adhesive Technologies business unit of between 16.0 and 17.0 percent (previous guidance: 15.5 to 16.5 percent), for Beauty Care of between 10.5 and 12.0 percent (unchanged) and for Laundry & Home Care of between 14.5 and 15.5 percent (previous guidance: 15.0 to 16.0 percent).For adjusted earnings per preferred share (EPS) at constant exchange rates, we expect an increase in the high single-digit to mid-teens percentage range (previous guidance: +5 to +15 percent).Furthermore, we have the following unchanged expectations for 2021:- Restructuring expenses of 250 to 300 million euros- Cash outflows from investments in property, plant and equipment and intangible assets of between 600 and 700 million eurosAbout HenkelHenkel operates globally with a well-balanced and diversified portfolio. The company holds leading positions with its three business units in both industrial and consumer businesses thanks to strong brands, innovations, and technologies. Henkel Adhesive Technologies is the global leader in the adhesives market - across all industry segments worldwide. In its Laundry & Home Care and Beauty Care businesses, Henkel holds leading positions in many markets and categories around the world. Founded in 1876, Henkel looks back on more than 140 years of success. In 2020, Henkel reported sales of more than 19 billion euros and adjusted operating profit of around 2.6 billion euros. Henkel employs about 53,000 people globally - a passionate and highly diverse team, united by a strong corporate culture, a common purpose to create sustainable value, and shared values. As a recognized leader in sustainability, Henkel holds top positions in many international indices and rankings. Henkel's preferred shares are listed in the German stock index DAX. For more information, please visit www.henkel.com.This document contains statements referring to future business development, financial performance and other events or developments of future relevance for Henkel that may constitute forward-looking statements. Statements with respect to the future are characterized by the use of words such as expect, intend, plan, anticipate, believe, estimate, and similar terms. This information contains forward-looking statements which are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Such statements are not to be understood as in any way guar-anteeing that those expectations will turn out to be accurate. Future performance and results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.This document includes supplemental financial indicators that are not clearly defined in the applicable financial reporting framework, and which are or may be alternative performance indicators. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Henkel's net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.This document has been issued for information purposes only and is not intended to constituteinvestment advice or an offer to sell, or a solicitation of an offer to buy, any securities.Financial calendarPublication of the Half-Year Report 2021:Thursday, August 12, 2021Publication of Quarterly Statement Q3 2021:Monday, November 8, 2021ContactInvestors & Analysts Lars KorinthPhone: +49 (0) 211 797-163Email: lars.korinth@henkel.com Manuel Bösing Phone: +49 (0) 211 797-7151 Email: manuel.boesing@henkel.com Jennifer Ott Phone: +49 (0) 211 797-2756 Email: jennifer.ott@henkel.com Dr. Dennis Starke Phone: +49 (0) 211 797-5601 Email: dennis.starke@henkel.com Press & MediaLars WitteckPhone: +49 (0) 211 797-2606Email: lars.witteck@henkel.comWulf KlüppelholzPhone: +49 (0) 211 797-1875Email: wulf.klueppelholz@henkel.comHanna PhilippsPhone: +49 (0) 211 797-3626Email: hanna.philipps@henkel.comLinda GehringPhone: +49 (0) 211 797-7265Email: linda.gehring@henkel.comFurther information containing download material, and the link to listen in on the telephone conference, are available at:www.henkel.com/presswww.henkel.com/ir*Adjusted for one-time expenses and income, and for restructuring expenses.06.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de Language: English Company: Henkel AG & Co. KGaA Henkel Str. 67 40191 Düsseldorf Germany Phone: +49 (0)211 797-0 Fax: +49 (0)211 798-4008 E-mail: press@henkel.com Internet: www.henkel.de ISIN: DE0006048432, DE0006048408 WKN: 604843, 604840 Indices: DAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange EQS News ID: 1193118 End of News DGAP News Service

  • EQS Group

    Henkel AG & Co. KGaA: Henkel expects, based on preliminary figures, organic sales growth in the first quarter 2021 significantly above current market expectations

    Henkel AG & Co. KGaA / Key word(s): Development of SalesHenkel AG & Co. KGaA: Henkel expects, based on preliminary figures, organic sales growth in the first quarter 2021 significantly above current market expectations31-March-2021 / 18:46 CET/CESTDisclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.Düsseldorf, 2021-03-31T18:15+02:00 (MESZ)Henkel expects, based on preliminary figures, organic sales growth in the first quarter 2021 significantly above current market expectationsBased on preliminary figures, in a continued challenging economic environment Henkel expects organic sales growth (excluding the impact of currency effects and acquisitions/divestments) in the first three months of fiscal 2021 of in total around 7 percent, which is significantly above the current market expectation of around 3.5 percent (source: Visible Alpha).Against the background of the recovery in industrial demand in the first quarter and based on preliminary figures, the Adhesive Technologies business unit is expected to achieve an organic sales growth of around 12.5 percent. Henkel expects the Beauty Care business unit to record a positive organic sales growth of around 1.0 percent, in particular affected by pandemic-related market headwinds. Despite core mature markets of Laundry & Home Care starting to slow down, preliminary figures for this business unit indicate strong organic sales growth of around 3.5 percent in the first quarter.Henkel will provide further details and background in the quarterly statement for the first quarter of 2021 on May 6, 2021.Henkel AG & Co. KGaAFurther information regarding financial instruments issued by Henkel Company: Henkel AG & Co. KGaA Contact: Heinz Nicolas Department: CLC / Telephone: +49 211 797 4516 Email: heinz.nicolas@henkel.com Address: 40191 Düsseldorf, Deutschland Henkel Preferred Share: ISIN DE0006048432 // WKN 604843 Henkel Ordinary Share: ISIN DE0006048408 // WKN 604840 Listing: Regulated market (Prime Standard), all eight German Stock Exchanges For further financial instruments see www.henkel.com/irDisclaimerThis information contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, etc. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.31-March-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de Language: English Company: Henkel AG & Co. KGaA Henkel Str. 67 40191 Düsseldorf Germany Phone: +49 (0)211 797-0 Fax: +49 (0)211 798-4008 E-mail: press@henkel.com Internet: www.henkel.de ISIN: DE0006048432, DE0006048408 WKN: 604843, 604840 Indices: DAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange EQS News ID: 1180277 End of Announcement DGAP News Service

  • EQS Group

    Henkel AG & Co. KGaA: Henkel delivers overall robust performance in fiscal 2020 despite substantial impact from COVID-19 pandemic

    DGAP-News: Henkel AG & Co. KGaA / Key word(s): Annual Report/Annual Results04.03.2021 / 07:31 The issuer is solely responsible for the content of this announcement.Henkel to propose dividend on prior-year levelHenkel delivers overall robust performance in fiscal 2020despite substantial impact from COVID-19 pandemic Balanced portfolio, strong innovations, financial strength, and dedicated team as key enablers for robust business performance in a global crisis 2020 results at upper end of full-year guidance: Group sales reach 19.3 billion euros, organic: -0.7 percent EBIT margin* at 13.4 percent, -260 basis points, corresponding to an operating profit* of 2.6 billion euros Earnings per preferred share (EPS)*: 4.26 euros, -17.9 percent at constant exchange rates Very strong free cash flow of 2.3 billion euros, net financial position significantly improved Proposed dividend on prior-year level: 1.85 euros per preferred share Implementation of agenda for purposeful growth on track, clear roadmap for further execution in 2021 and beyond Outlook for 2021: Organic sales growth: 2.0 to 5.0 percent EBIT margin*: 13.5 to 14.5 percent Earnings per preferred share (EPS)*: an increase between 5.0 to 15.0 percent at constant exchange rates Düsseldorf - "Despite the sharp decline of the global economy as a result of theCOVID-19 pandemic in 2020, we delivered an overall robust performance across all business units. For the full year, our results were at the upper end of our guidance. We achieved this thanks to our balanced portfolio, successful innovations, and financial strength as well as the outstanding commitment of our employees around the world. I would like to thank all of them for their excellent contributions in this truly challenging year," said Henkel CEO Carsten Knobel. "We recorded sales of 19.3 billion euros, slightly below the prior-year level in organic terms, and maintained a profitable business with an adjusted EBIT margin of13.4 percent. We also generated a very strong free cash flow in excess of 2.3 billion euros, almost at the record level of the prior year. Based on these robust results and given our strong financial base, we will propose a stable dividend to our shareholders at the upcoming Annual General Meeting. Over the past 35 years, since going public, Henkel has always paid out a dividend above or at the prior-year level," Knobel added. "During the COVID-19 crisis, we adapted flexibly and quickly to changes in our markets, putting the safety of employees at the top of our agenda. At the same time, we were able to successfully launch and drive the implementation of our strategic agenda across all pillars: shaping a winning portfolio, creating competitive edge by accelerating impactful innovations, by even further integrating sustainability firmly in everything we do, and by driving the digital transformation, and ensuring future-ready operating models. But most important for me, we strengthened our collaborative culture and created a strong momentum for change that will enable us to deliver superior performance and purposeful growth - for our customers and consumers, our company, employees and shareholders, and for society and the planet."For the full year, the Adhesive Technologies business unit reported sales below theprior-year level, reflecting a significant decline in demand from key industries. However, thanks to the breadth of its portfolio and successful innovative solutions the business has proven its robustness in a global economic downturn.The organic sales development in Beauty Care was below prior-year level, strongly impacted by the Hair Salon business due to enforced closures, while the Retail business recorded good growth. This was driven by the successful development of top brands as well as new product launches addressing key consumer trends. The Laundry & Home Care business unit achieved very strong organic sales growth, fueled by both, the surge in demand for hygiene-related products and by successful innovations, also addressing the increased demand for more sustainable products. After a strong negative impact on sales due to the pandemic and related shutdowns in the second quarter for Adhesive Technologies and Beauty Care, all three business units reported in the second half of 2020 good organic growth compared to the prior year. The development of the consumer goods businesses, Beauty Care and Laundry & Home Care, was also supported by increased investments in brands, innovations and digitalization. At Group level, adjusted EBIT decreased by -19.9 percent to 2.6 billion euros. Adjusted return on sales (EBIT margin) was at 13.4 percent, -2.6 percentage points lower than in 2019. Adjusted earnings per preferred share were at 4.26 euros, a decline of -17.9 percent at constant exchange rates. "The development of our earnings reflects our increased investments which we stepped up as announced in the beginning of 2020 - despite the crisis. Declining demand in key business segments during the COVID-19 crisis also negatively affected our profitability. However, thanks to our successful cost management and the implementation of improved operating models we were able to partially mitigate the impact from the crisis on our earnings," explained Carsten Knobel."As we are managing the current crisis, we remain fully dedicated to our ambitious growth agenda for the coming years. Looking ahead, we are more confident than ever to execute our Purposeful Growth agenda with our global team and successfully shape our future."Outlook 2021"As we enter 2021, we still face a high level of uncertainty how the pandemic will continue to evolve, how quickly the vaccination efforts will progress and how this will impact the widespread restrictions in many countries. We expect that the industrial demand as well as consumer segments which are relevant for our company, in particular the Hair Salon business, will recover. At the same time, we believe consumer demand will return to normal levels in those categories which saw higher demand due to the pandemic. In addition, we assume that current restrictions in many key markets will be lifted in the course of the first quarter and that there will be no widespread shutdowns of retail and industrial businesses as well as production facilities in the remainder of the year," said Carsten Knobel. Based on these assumptions, Henkel expects to generate sales and earnings growth in fiscal 2021. The company anticipates organic sales growth of 2.0 to 5.0 percent and adjusted return on sales (EBIT margin) in the range of 13.5 to 14.5 percent. For adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel expects an increase in the range of 5.0 to 15.0 percent.Group sales and earnings performance in fiscal 2020At 19,250 million euros, Henkel Group sales in fiscal 2020 were -4.3 percent below the prior-year period. Organic sales growth, which excludes the impact of currency effects and acquisitions/divestments, was slightly negative at -0.7 percent. The contribution from acquisitions and divestments amounted to 0.3 percent. Currency effects had a negative impact of -3.9 percent on sales.In the face of a significant decline in demand from key industry customers as a result of the COVID-19 pandemic, the Adhesive Technologies business unit reported an organic sales development of -4.2 percent. In the Beauty Care business unit, sales were organically-2.8 percent below the prior-year level, impacted in particular by the challenging conditions for the Hair Salon business in many key regions and markets due to the pandemic while the Retail business recorded good growth. The Laundry & Home Care business unit achieved very strong organic sales growth of 5.6 percent. The development was driven by strong innovations and the pandemic-related increased demand for hygiene products.Emerging markets showed an organic sales growth of 3.0 percent. Mature markets showed a negative organic sales development of -3.2 percent.In a market environment that has remained highly competitive, sales in Western Europe showed a negative organic development of -4.4 percent. Eastern Europe achieved organic growth of 7.1 percent. In Africa/Middle East, sales grew organically by 7.0 percent.North America recorded an organic sales development of -2.2 percent. In Latin America organic sales slightly decreased by 0.5 percent. In the Asia-Pacific region, sales decreased organically by -1.6 percent.Adjusted operating profit (adjusted EBIT) reached 2,579 million euros in 2020 after 3,220 million euros in fiscal 2019 (-19.9 percent).Adjusted return on sales (adjusted EBIT margin) reached 13.4 percent, -2.6 percentage points below the prior year. The development was also impacted by higher investments in marketing and advertising as well as digital and IT.Adjusted earnings per preferred share decreased by -21.5 percent from 5.43 euros in fiscal 2019 to 4.26 euros. At constant exchange rates, adjusted earnings per preferred share decreased by -17.9 percent.Net working capital significantly improved to 0.7 percent of sales, compared to 3.9 percent in the prior-year period.Free cash flow remained very strong. At 2,338 million euros it almost reached the prior-year level (2019: 2,471 million euros).Effective December 31, 2020, Henkel's net financial position improved significantly to-888 million euros (December 31, 2019: -2,047 million euros).The Management Board, Supervisory Board and Shareholders' Committee will propose to the Annual General Meeting on April 16, 2021 the same dividend as in the previous year, namely 1.85 euros per preferred share and 1.83 euros per ordinary share. This equals a payout ratio of 43.7 percent, which is above the target range of 30 to 40 percent, reflecting the special nature of the burdens on earnings caused by the COVID-19 pandemic. This payment is possible not least thanks to the strong financial base and low net financial debt of the Henkel Group. Going forward Henkel's dividend policy remains unchanged.Business unit performance in fiscal 2020In fiscal 2020, sales in the Adhesive Technologies business unit were nominally-8.2 percent below prior-year level, reaching 8,684 million euros. Organically, sales development was -4.2 percent. The first half of the year in particular was strongly impacted by the COVID-19 pandemic. However, the second half of the year saw a recovery in demand across all business segments and regions. Adjusted operating profit reached 1,320 million euros (Previous year: 1,712 million euros). At 15.2 percent, adjusted return on sales was below the level of 2019. The margin decline was in particular due to the significantly lower sales volume as a result of the pandemic.In the Beauty Care business unit, sales in fiscal 2020 showed an organic development of-2.8 percent. Nominally, sales were -3.2 percent below prior-year level, reaching 3,752 million euros. The development is particularly due to the negative impacts of the COVID-19 pandemic on the Hair Salon business while the Retail business achieved an overall good organic sales development. Adjusted operating profit reached 377 million euros (Previous year: 519 million euros). Adjusted return on sales reached 10.0 percent, impacted by the declining sales volume in the Hair Salon business as well as higher investments in marketing and advertising as well as digital and IT.The Laundry & Home Care business unit generated organic sales growth of 5.6 percent in fiscal 2020. Nominally, sales increased by 0.7 percent to 6,704 million euros. Adjusted operating profit amounted to 1,004 million euros. (Previous year: 1,096 million euros). At 15.0 percent, adjusted return on sales was below the level of 2019, especially due to the higher investments in marketing and advertising as well as digital and IT."Purposeful Growth" agenda: Strong momentum At the beginning of March 2020, Henkel presented the company's growth agenda for the coming years which focuses on: shaping a winning portfolio, strengthening competitive edge, particularly in the areas of innovation, sustainability and digitalization, establishing future-ready operating models as well as creating a strong and collaborative corporate culture. "This strategic framework will help us to win the 20s for Henkel with a clear focus on purposeful growth. Despite our focus on crisis management in 2020, we were able to launch and start the implementation of our growth agenda. We are fully committed to driving further progress in 2021 and the following years," Carsten Knobel said.A key element of Henkel's future direction is an active portfolio management. Henkel has identified brands and categories with a total sales volume of more than one billion euros, predominantly in its consumer businesses, of which around 50 percent are marked to be divested or discontinued by 2021. The remaining brands and businesses are expected to show sustainable performance improvements. In 2020, already 60 percent of the revenue base of these brands and businesses delivered improved topline momentum. Despite the market uncertainties in 2020, Henkel already signed agreements to sell, completed the sale or discontinued businesses with an annual sales volume of more than 100 million euros. In the context of Henkel's active portfolio management, charges of about 300 million euros were booked in 2020, due to a non-cash impairment loss on businesses to be sold or discontinued.At the same time, Henkel strengthened its portfolio through M&A, leveraging its strong balance sheet. In 2020, Henkel agreed and closed two acquisitions with a combined purchase price of around 500 million euros in its Beauty Care and Adhesive Technologies businesses.To further strengthen its competitive edge, Henkel is accelerating impactful innovations, boosting sustainability as a differentiating factor, and driving the digital transformation of the company.In 2020, Henkel increased investments by around 200 million euros compared to 2019(350 million euros compared to 2018) to strengthen its brands, technologies, and innovations, as well as to accelerate the digital transformation of the company. The investments are showing first tangible results: Henkel was able to increase market shares in many key markets and categories. The company also further accelerated its innovation processes and the launches of new products. This helped, for example, to respond quickly to the strong surge in demand for hygiene, disinfecting and cleaning products with "fast-track innovations". The focus was on key trends such as hygiene, more natural and sustainable products, and higher convenience.To accelerate innovation and develop new business models, the consumer business units Beauty Care and Laundry & Home Care have established internal incubator teams, combining agile work approaches with the scale and expertise of a global company: The "Fritz Beauty Lab", inspired by the company's founder Fritz Henkel, aims to identify areas with growth potential for existing brands, or white spots to create completely new brands. The Laundry & Home Care business also launched a new sustainability idea factory under the Love Nature umbrella brand, focusing on sustainable solutions in laundry and home care categories. In Adhesive Technologies, Henkel continued its investments in its state-of-the-art innovation center in Düsseldorf. The center, representing a total investment of 130 million euros, is nearing completion, and will become operational in the first half of 2021.Sustainability is one of Henkel's great strengths. The company has a leading role that is regularly confirmed in ratings and rankings. Building on this strong track record, Henkel aims to leverage sustainability as a competitive differentiator. In 2020, Henkel successfully continued to integrate sustainability in all its business activities and to drive progress along the entire value chain. Henkel launched new products addressing the rising consumer expectations toward natural and sustainable products, such as solid bars under the Beauty Care brands Nature Box and N.A.E. In the Laundry & Home Care business the Pro Nature product range was expanded and Love Nature, a cross-category sustainable brand, was successfully introduced. In Adhesive Technologies, a new technology under the Loctite brand was developed. It allows the replacement of polyethylene with paper for use in food and non-food packaging. Beyond innovations for more sustainable products, Henkel entered into a virtual power purchasing contract for energy from renewable sources, which will cover the energy demand of all Henkel sites in North America. And Henkel was the first company to issue a plastic waste reduction bond with a volume of around 100 million euros to finance measures to reduce plastic waste across the value chain. The bond underlines Henkel's commitment to foster a circular economy and reduce plastic waste as well as to Sustainable Finance.Henkel is pursuing the goal of tripling the value of its operations, products and services in relation to its environmental footprint between 2010 and 2030. On the way to this long-term goal Henkel had defined medium-term targets for 2020. The company was able to achieve the set targets in most dimensions.Overall, Henkel improved its resource efficiency in 2020 by 64 percent compared to 2010.Next to innovation and sustainability, another key driver in strengthening Henkel's competitive edge is to transform digital into a customer and consumer value creator across all business units. To enable and accelerate this process, Henkel created a new unit in 2020, Henkel dx, combining Digital, Business Process Management and IT expertise in one global organization. Henkel dx has opened its first innovation hub in Berlin and plans to expand its global network with more hubs in the future. In the course of 2020, the share of sales across digital channels increased substantially, with all business units benefiting. Overall, digital sales at Henkel increased by about 20 percent, with the consumer businesses combined delivering growth of more than 60 percent. For the Group, the digital share in overall sales further increased and climbed to around 15 percent.Lean, fast and future-ready operating models are important elements of Henkel's strategic framework. To ensure this and to improve competitiveness and efficiency, the company continuously adapts and reshapes processes and structures across the entire company. In doing so, Henkel aspires to enable new business models, to step up customer and consumer proximity with faster decision-making, and to further increase efficiency. Through the introduction of new organizational structures in the Adhesive Technologies business unit in 2020, Henkel was able to address and serve specific customer segments and markets even better. In the Beauty Care and Laundry & Home Care business units, Henkel implemented further organizational changes to enable a stronger regional focus and increase customer and consumer proximity.Further developing Henkel's corporate culture and accelerating the cultural transformation is at the heart of Henkel's "Purposeful Growth" agenda. The company aims to foster a collaborative culture with empowered people and with its leadership commitments at the core. In 2020, Henkel launched a range of measures to advance a culture of collaboration and empowerment, upskill employees for future capabilities and enable its people to grow and develop - personally and professionally. Henkel conducted a global Organizational Health Survey to identify strengths and areas for improvement, and to design the cultural journey going forward. The efforts to continuously adapt and evolve its culture and to remain an attractive employer of choice were also reflected in marked improvements in key employer reputation rankings and benchmarks."I am proud of the progress we have made with the implementation of our strategic agenda while addressing a global pandemic. I am impressed by the resilience of our business, which has enabled us to achieve a robust business performance and to further strengthen our financial foundation. But the most important feeling is gratitude and heartfelt respect for our employees at Henkel. The performance, collaboration, and positive attitude they have shown in 2020 has touched and inspired me. I would like to thank all of them for their invaluable contributions in this truly exceptional year," Carsten Knobel summarized.About HenkelHenkel operates globally with a well-balanced and diversified portfolio. The company holds leading positions with its three business units in both industrial and consumer businesses thanks to strong brands, innovations and technologies. Henkel Adhesive Technologies is the global leader in the adhesives market - across all industry segments worldwide. In its Laundry & Home Care and Beauty Care businesses, Henkel holds leading positions in many markets and categories around the world. Founded in 1876, Henkel looks back on more than 140 years of success. In 2020, Henkel reported sales of more than 19 billion euros and adjusted operating profit of about 2.6 billion euros. Henkel employs about 53,000 people globally - a passionate and highly diverse team, united by a strong company culture, a common purpose to create sustainable value, and shared values. As a recognized leader in sustainability, Henkel holds top positions in many international indices and rankings. Henkel's preferred shares are listed in the German stock index DAX. For more information, please visit www.henkel.com.This information contains forward-looking statements which are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Statements with respect to the future are characterized by the use of words such as "expect", "intend", "plan", "anticipate", "believe", "estimate", and similar terms. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements. This document includes - in the applicable financial reporting framework not clearly defined - supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Henkel's net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.This document has been issued for information purposes only and is not intended to constitute an investment advice or an offer to sell, or a solicitation of an offer to buy, any securities. ContactsInvestors & Analysts Lars Korinth Phone: +49 211 797 - 1631 Email: lars.korinth@henkel.com Mona Niermann Phone: +49 211 797 - 7151 Email: mona.niermann@henkel.com Jennifer OttPhone: +49 211 797 - 2756Email: jennifer.ott@henkel.comManuel BösingPhone: +49 211 797 - 6459Email: manuel.boesing@henkel.comPress & MediaLars WitteckPhone: +49 211 797 - 2606Email: lars.witteck@henkel.comWulf KlüppelholzPhone: +49 211 797 - 1875Email: wulf.klueppelholz@henkel.comwww.henkel.com/presswww.henkel.com/ir 04.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de Language: English Company: Henkel AG & Co. KGaA Henkel Str. 67 40191 Düsseldorf Germany Phone: +49 (0)211 797-0 Fax: +49 (0)211 798-4008 E-mail: press@henkel.com Internet: www.henkel.de ISIN: DE0006048432, DE0006048408 WKN: 604843, 604840 Indices: DAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange EQS News ID: 1173005 End of News DGAP News Service