Henkel Achieves Strong Organic Sales Growth and Significantly Improves Profitability in 2024

Henkel delivered strong organic growth in sales and significantly increased profitability in 2024, achieving a notable 25% rise in earnings per preferred share. The Group’s sales for fiscal 2024 reached €21.586 billion, reflecting a nominal increase of 0.3% compared to the previous year.

CEO Carsten Knobel’s Statement

Henkel CEO Carsten Knobel commented: “In 2024, we achieved strong organic sales growth and significantly improved our profitability, with earnings per preferred share rising by 25%. The targeted value creation of our products for customers and consumers was the key driver of this earnings improvement. Equally critical were our accelerated marketing efforts in the consumer goods sector and successful innovations across both business units, enabling continued investment in our operations and future growth. We want our shareholders to participate in the company’s successful development. Therefore, we will propose a double-digit dividend increase at the Annual General Meeting. Additionally, we have decided on a new share buyback program of up to €1 billion.”

Outlook for 2025

Following moderate growth momentum in 2024, the global economy is expected to see similarly modest expansion in 2025. For Henkel, this suggests moderate increases in both industrial and consumer demand across key areas of its consumer products business. Furthermore, global inflation is anticipated to continue declining in fiscal 2025 compared to prior years, with interest rates also expected to ease.

Regarding direct material costs, Henkel forecasts a low to mid-single-digit percentage increase in 2025 relative to the 2024 annual average. Based on these assumptions, Henkel expects organic sales growth of 1.5% to 3.5% in fiscal 2025.

Sales and Profit Performance Across the Group in Fiscal 2024

Henkel Group’s sales for fiscal 2024 rose nominally by 0.3% year-on-year to €21.586 billion. Currency-adjusted sales growth stood at 2.1%, while organic sales growth—adjusted for exchange rates and acquisitions/divestments—reached a robust 2.6%, driven by positive contributions from both pricing and volume.

Advancements in Digitalization

Henkel further accelerated its digital transformation in 2024. Rapid developments in Artificial Intelligence (AI) took center stage, building on AI’s longstanding role in Henkel’s digital strategy. Examples include AI applications in:

• Process automation,
• Adhesive development laboratories,
• Globally interconnected production facilities,
• Autonomous robots in manufacturing plants, and
• Chatbots on Henkel’s brand websites.

Henkel’s digital unit, Henkel dx, optimized internal structures, strengthened digital expertise, and fostered an open innovation culture in 2024. Strategic partnerships with global tech leaders like SAP, Microsoft, and Adobe enabled Henkel to integrate cutting-edge technologies into its digital platforms and projects. By accelerating digital innovation, refining platform strategies, and enhancing cross-functional collaboration, Henkel significantly improved IT efficiency.

Progress Toward Gender Equality

Henkel aims to achieve gender parity across all management levels by the end of 2025. As of 2024, women hold approximately 42% of management positions globally.

CEO Closing Remarks

Carsten Knobel concluded: “Fiscal 2024 was a highly successful and pivotal year for Henkel. We met our financial targets, which we raised twice during the year. We consistently executed our ‘purposeful growth agenda’ across all strategic areas and advanced our transformation with determination. We are making steady progress toward our goals, and the company’s transformation is yielding tangible results. With a clear strategy, a strong team, and a unique corporate culture, we are ready for the future.”

About Henkel

Henkel holds leading positions in global markets through its brands, innovations, and technologies in both industrial and consumer businesses. Its Adhesive Technologies unit is a global leader in adhesives, sealants, and functional coatings. Through Consumer Brands, Henkel leads in numerous categories worldwide, particularly in Laundry & Home Care and Hair. Key brands include Loctite, Persil, and Schwarzkopf.

In fiscal 2024, Henkel reported sales exceeding €21.6 billion and adjusted operating profit of approximately €3.1 billion. Henkel’s preferred shares are listed on Germany’s DAX stock index. Sustainability, a core component of Henkel’s heritage, is guided by a clear strategy with measurable targets. Founded in 1876, Henkel employs around 47,000 people globally, united by shared values and the purpose “Pioneers at heart for the good of generations.”