Henkel Q3 financial results update

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Henkel has announced its financial results for the third quarter of this year, with its Adhesive Technologies business unit achieving sales of €2,800 million.

The sales represented a nominal increase of 3.3% compared to the same quarter in the previous year, up from €2,711 million. After adjusting foreign exchange, acquisitions and divestments, sales increased by 3.7%. This growth was driven by “strong volume development," while prices remained stable compared to the prior-year quarter.

All three areas within the Adhesive Technologies business unit drove the sales growth. For example, the Mobility & Electronics business area achieved an organic sales increase of 3.9%. The company said this development was driven by double-digit growth in the Electronics business and “very strong growth” in the Industrial business segment. Sales in the Automotive business declined due to a slowdown in market demand.

The Packaging & Consumer Goods business area posted an organic sales growth of 2.7%, with the Packaging business achieving strong organic sales growth driven by an improvement in demand.

The Craftsmen, Construction & Professional business segment achieved organic sales growth of 4.5%.

Regionally, the Adhesive Technologies business unit achieved positive organic sales growth in Europe in the third quarter, supported by all three business areas. In contrast, the North American region recorded a slightly negative organic sales growth due to developments in the Mobility & Electronics and Packaging & Consumer Goods business areas.

In the IMEA region, the business unit achieved double-digit organic sales growth, with all business areas contributing. The Latin America region posted significant organic sales growth, primarily driven by the Mobility & Electronics and Craftsmen, Construction & Professional business areas. The Asia-Pacific region showed strong organic sales growth to which all three business areas contributed, with business developments in China having a particularly positive effect.

For the first nine months of 2024, the Adhesive Technologies business unit posted nominal sales growth of 1.1% to €8,275 million. With the adjustment of foreign exchange, acquisitions and divestments, this business unit’s sales growth increased by 2.5%, primarily driven by volume.

Looking ahead, Henkel expected that the organic sales growth of the Adhesive Technologies business unit would be in the range of 2% to 4%.

“Backed by the strong performance year-to-date, we see a clear chance to reach the upper half of the respective earnings ranges for the Group – this applies both to the adjusted EBIT margin and to adjusted EPS growth,” said Carsten Knobel, CEO of Henkel. 

www.henkel.co.uk