Henkel (HEN) Q3 2024 earnings summary

Executive summary

• Achieved 3.3% organic sales growth in Q3 2024, driven by both Adhesive Technologies (3.7%) and Consumer Brands (2.7%), with resilient pricing and positive volume trends.

• Gross and EBIT margins remained strong, enabling increased investments in brands, innovation, and sustainability.

• Portfolio optimization in Consumer Brands is progressing, with discontinuations set to conclude by year-end.

• Confident in reaching the upper half of guidance ranges for adjusted EBIT margin and adjusted EPS growth for the full year.

• Sustainability efforts intensified with a net-zero roadmap targeting a 90% reduction in Scope 1, 2, and 3 emissions by 2045, validated by the Science Based Targets initiative.

Financial highlights

• Q3 2024 nominal sales reached approximately €5.5 billion, up 1% year-over-year, with Adhesive Technologies at €2.8 billion and Consumer Brands at €2.7 billion.

• Organic sales growth: Group 3.3%, Adhesive Technologies 3.7%, Consumer Brands 2.7%.

• Price contributed 1.2% and volume 2.1% to overall organic sales growth; FX impact was -3.6%.

• Acquisitions contributed 1.2% to sales, notably Seal for Life and Vidal Sassoon.

• Regional organic sales growth: IMEA 19.6%, Asia-Pacific 6.4%, Latin America 6.1%, Europe 0.7%, North America -1.7%.

Outlook and guidance

• 2024 organic sales growth guidance: Group 2.5–4.5%, Adhesive Technologies 2.0–4.0%, Consumer Brands 3.0–5.0%.

• Adjusted EBIT margin guidance: Group 13.5–14.5%, Adhesive Technologies 16.0–17.0%, Consumer Brands 13.0–14.0%.

• Adjusted EPS growth at constant currencies expected in the upper half of the +20% to +30% range.

• Portfolio discontinuations in Consumer Brands to conclude by year-end, with positive volume growth expected in 2025.

• Restructuring expenses projected at €250–300 million; capex between €650–750 million.