Henkel (HEN) Q2 2024 earnings summary

Executive summary

• Achieved strong business performance in H1 2024, with group sales of €10.8 billion and 2.9% organic growth, despite a challenging macroeconomic and geopolitical environment.

• Significant improvements in adjusted EBIT (up 28.4% to €1.61 billion) and adjusted EBIT margin (up 3.4pp to 14.9%), supported by valorization, portfolio measures, and supply chain efficiencies.

• Net income attributable to shareholders rose 82.4% to €1,029 million; adjusted EPS grew 32.9% at constant FX to €2.78.

• Advanced strategic priorities, including Consumer Brands integration, value-enhancing acquisitions, and innovation investments.

• Raised full-year 2024 outlook, with mid-term financial ambitions expected to be reached sooner.

Financial highlights

• H1 2024 sales: €10.8 billion; organic sales growth 2.9%.

• Adjusted EBIT: €1,610 million (+28.4% YoY); adjusted EBIT margin: 14.9% (up from 11.5%).

• Adjusted EPS: €2.78, up 32.9% at constant FX.

• Free cash flow: €772 million, up from H1 2023.

• Net financial position: -€1,440 million, mainly due to acquisitions and dividend payments.

Outlook and guidance

• Raised 2024 guidance: organic sales growth 2.5–4.5%, adjusted EBIT margin 13.5–14.5%, adjusted EPS growth 20–30% at constant FX.

• Adhesive Technologies: OSG 2.0–4.0%, EBIT margin 16.0–17.0%; Consumer Brands: OSG 3.0–5.0%, EBIT margin 13.0–14.0%.

• Guidance reflects higher direct material prices in H2 and increased marketing investments for Consumer Brands.

• Confident in achieving mid-term ambitions earlier, targeting 3–4% organic sales growth, ~16% adjusted EBIT margin, and mid- to high-single-digit EPS growth.