Following a strong start to fiscal year 2021, Henkel accelerated growth in the course of the first half year and adjusted for currency effects, already exceeded the pre-crisis level of 2019.
In the first half of 2021, sales in the business unit Adhesive Technologies increased nominally by +14.4% from 4,153 million euros in the prior-year period to 4,752 million euros.
Despite the impacts of the global coronavirus crisis that continue to adversely affect the social and economic environment in numerous markets around the world, Henkel achieved significant sales and earnings growth in the first half of the year.
All business units and regions contributed to organic sales growth in the first half of 2021. However, Henkel’s Adhesive Technologies business unit achieved the strongest sales growth in the first half of the year. This development was supported by the significant recovery of the global economy.
“In the first half of 2021, Henkel continued to be affected by the COVID-19 pandemic,” said Henkel CEO Carsten Knobel. “Nevertheless, we achieved double-digit growth in sales and earnings. In terms of sales, we have already been able to exceed the pre-crisis level of 2019 adjusted for currency effects. Mainly thanks to the outstanding team spirit and commitment of our employees around the world.”
A key pillar of Henkel’s strategy is a clear differentiation in the market through successful innovations. These supported growth significantly in the first half of the year. In Adhesive Technologies, Henkel was able to achieve growth in the mid double-digit percentage range with innovative thermal interface materials for 5G applications, driven by co-developments with major customers.
Henkel now anticipates organic sales growth of +6.0% to +8.0% and adjusted return on sales (EBIT margin) in the range of 13.5% to 14.5%. For adjusted earnings per preferred share (EPS) at constant exchanges rates, Henkel continues to expect an increase in the high-single digit to mid-teens percentage range.
“We are working hard and with extensive measures to limit the impact on our business and profitability. At the same, we will continue to respond flexibly and quickly to changes in our markets and we are consistently driving the implementation of our growth agenda,” said Knobel. “We have raised our sales forecast and kept our expectations for earnings per share unchanged — despite increasing headwinds from raw material cost inflation.”
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