Henkel Ag & Co. Kgaa · XETR:HEN
Henkel Ag & Co. Kgaa — Q1 2025 Earnings Presentation
34 slides from Henkel Ag & Co. Kgaa's earnings presentation, May 8, 2025
Slide 1: Henkel Q1 2025
HENKEL Q1 2025 CARSTEN KNOBEL, MARCO SWOBODA – 8 MAY 2025
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Statements with respect to the future are characterized by the use of words such as “expect”, “intend”, “plan”, “anticipate”
Slide 3: Agenda
AGENDA 01 Key Developments 02 Business Performance Q1 2025 & Outlook 03 Key Take-Aways & Closing 3 HENKEL Q1 2025
Slide 4: At a Glance
AT A GLANCE Q1 2025 performance ▪ Organic sales growth reflecting softer start as expected, while margins remain strong HENKEL ADHESIVE CONSUMER ▪ Adhesive Technologies with pricing and volume development GROUP TECHNOLOGIES BRANDS in positive territory despite negative working day impact ▪ Consumer
Slide 5: Continuously driving our businesses along clear strategic priorities to fuel profitable growth
CONTINUOUSLY DRIVING OUR BUSINESSES ALONG CLEAR STRATEGIC PRIORITIES TO FUEL PROFITABLE GROWTH Selective highlights Retailer Brands Capital allocation building on divestment closed promising M&A pipeline and as of April 1 and share buyback thus earlier than Continued strong expected performance in M
Slide 6: Adhesive Technologies driving profitable growth in attractive markets: Electronics
ADHESIVE TECHNOLOGIES DRIVING PROFITABLE GROWTH IN ATTRACTIVE MARKETS ELECTRONICS with DOUBLE-DIGIT growth in Q1 Demand for HIGH PERFORMING ELECTRONICS fueling market growth and need for innovative solutions AI-DRIVEN PC MARKET TO MORE THAN DOUBLE BY 2028, driving growth in semiconductor packaging >
Slide 7: Adhesive Technologies driving profitable growth in attractive markets: Industrials
ADHESIVE TECHNOLOGIES DRIVING PROFITABLE GROWTH IN ATTRACTIVE MARKETS INDUSTRIALS with STRONG growth in Q1 OUTPERFORMING MARKETS across segments in Industrials building on customer-centric solutions EXPANDING CAPACITIES in AVIATION in light of HIGH SINGLE-DIGIT GROWTH1 driven by high order backlog H
Slide 8: Creating competitive advantage with innovative solutions in Industrials
CREATING COMPETITIVE ADVANTAGE WITH INNOVATIVE SOLUTIONS IN INDUSTRIALS Driving COMPETITIVE EDGE with FIRST-TO-MARKET hex-chrome1 free technologies in the steel industry Solutions enabling BEST-IN-CLASS CORROSION RESISTANCE without Hex-chrome free pretreatment layers compromising worker safety and t
Slide 9: Successfully driving the transformation of our Consumer Brands business
SUCCESSFULLY DRIVING THE TRANSFORMATION OF OUR CONSUMER BRANDS BUSINESS Significantly improved quality of business across multiple dimensions since merger announcement Sales [in MEUR] Gross Margin [in %] Adj. EBIT Margin [in %] CNWC [in %] ∆ 2024 vs. 2022 ∆ 2024 vs. 2022 ∆ 2024 vs. 2022 ∆ 2024 vs. 2
Slide 10: Building on the achieved milestones – clearly committed to mid-term ambition
BUILDING ON THE ACHIEVED MILESTONES – CLEARLY COMMITTED TO MID-TERM AMBITION MID-TERM Focused business FINANCIAL AMBITION portfolio BETTER With consumer 3 TO 4 % preferred products ORGANIC SALES GROWTH At optimal costs MID-TEENS % Powered by ADJ. EBIT customer excellence MARGIN 10 HENKEL Q1 2025
Slide 11: Continued outperformance of our top 10 brands
CONTINUED OUTPERFORMANCE OF OUR TOP 10 BRANDS SALES SHARE OF TOP 10 BRANDS INCREASING TO ~60%1 ~60% ~50% 2025 2023 2024 Q1 2025 ~400 BPS OUTPERFORMANCE 2-YEAR AVERAGE OSG2 OF BUILDING ON A STRONG INNOVATION TRACK RECORD … WITH MORE TO COME IN 2025 TOP 10 BRANDS VS. HCB TOTAL 11 HENKEL Q1 2025 1 post
Slide 12: Driving valorization with impactful innovations under Perwoll
DRIVING VALORIZATION WITH IMPACTFUL INNOVATIONS UNDER PERWOLL… STATE OF THE ART TECHNOLOGY with triple renew formula #1 BRAND in Fabric Care globally1 with >20% CAGR1 over past three years RELEVANT OSG ~31% INNOVATIONS addressing unmet ~22% consumer needs ~11% CLOSING WHITE SPOTS 2022 2023 2024 with
Slide 13: Becoming the authority in hair building on Schwarzkopf masterbrand
…AND BECOMING THE AUTHORITY IN HAIR BUILDING ON SCHWARZKOPF MASTERBRAND LEVERAGING GROWTH of Schwarzkopf Masterbrand SCHWARZKOPF CONSUMER with innovations like with >6% CAGR over past 3 years1… CREME SUPREME OSG ~8% ~6% FIRST CARING ~5% COLORATION with innovative bonding technology 3X BONDING HAPTIQ
Slide 14: Outlook for 2025 unchanged
OUTLOOK FOR 2025 UNCHANGED ORGANIC SALES GROWTH ▪ Top-line performance in Adhesive Technologies supported 1.5 to 3.5% by better mix and partial reversal of negative working day impact in H2 despite still demanding environment ADJUSTED EBIT MARGIN ▪ Well-filled innovation pipeline in Consumer Brands
Slide 15: Agenda
AGENDA 01 Key Developments 02 Business Performance Q1 2025 & Outlook 03 Key Take-Aways & Closing 15 HENKEL Q1 2025
Slide 16: Organic sales development
ORGANIC SALES DEVELOPMENT Q1 2025 -1.0% 1.1% -1.4% -1.4% OSG A&D FX NOMINAL PRICE VOLUME SALES 1.4% -2.4% €5.2bn 16 HENKEL Q1 2025
Slide 17: Organic sales development by region
ORGANIC SALES DEVELOPMENT BY REGION Q1 2025 Organic sales growth Europe -2.0% North America -5.6% IMEA 4.6% Asia-Pacific 3.6% Latin America 1.5% 17 HENKEL Q1 2025
Slide 18: Adhesive Technologies Q1 2025
In progress ADHESIVE TECHNOLOGIES Q1 2025 NOMINAL SALES €2.7bn ORGANIC SALES GROWTH 1.1% PRICE VOLUME 0.6% 0.5% 18 HENKEL Q1 2025
Slide 19: Adhesive Technologies price/volume development
ADHESIVE TECHNOLOGIES in % Q1 2025 – Price/Volume Development 6 3.9 ▪ Overall positive organic sales growth backed by 4 3.1 balanced price and volume mix 2.3 2 ▪ Robust pricing – underpinning strength of our 0.3 0.5 market position and portfolio 0 ▪ Positive volume development despite negative 1.0 0
Slide 20: Adhesive Technologies business area performance
ADHESIVE TECHNOLOGIES Q1 2025 – Business Area Performance: Continued strong contribution from Electronics & Industrials MOBILITY & PACKAGING & CRAFTSMEN, ELECTRONICS CONSUMER GOODS CONSTRUCTION & PROF. SALES OSG SALES OSG SALES OSG €966m 3.1% €804m -0.4% €945m 0.4% Double-digit growth in Packaging s
Slide 21: Consumer Brands Q1 2025
CONSUMER BRANDS Q1 2025 NOMINAL SALES €2.5bn ORGANIC SALES GROWTH -3.5% PRICE VOLUME 2.0% -5.5% 21 HENKEL Q1 2025
Slide 22: Consumer Brands price/volume development
CONSUMER BRANDS in % Q1 2025 – Price/Volume Development 8 6.2 4.0 4.4 ▪ Continued positive pricing driven by ongoing 4 valorization across portfolio 2.0 2.0 ▪ Volume development reflects muted consumer 0 sentiment, customer destocking and -1.0 -0.8 -1.4 -1.7 supply chain challenges -4 ▪ Volume devel
Slide 23: Consumer Brands business area performance
CONSUMER BRANDS Q1 2025 – Business Area Performance: Muted sentiment while top brands outperform LAUNDRY & HAIR OTHER CONSUMER HOME CARE BUSINESSES SALES OSG SALES OSG SALES OSG €1,550m -4.1% €792m -1.6% €142m -6.8% Laundry Care negative due to Consumer positive mainly driven Below prior year due to
Slide 24: Economic environment
ECONOMIC ENVIRONMENT Increased volatility in macroeconomic environment since beginning of 2025 ▪ Industrial and consumer demand increasingly impacted by macroeconomic and geopolitical environment ▪ Inflation expected to remain elevated ▪ High volatility in foreign exchange markets and input cost dev
Slide 25: Outlook 2025
OUTLOOK 2025 ORGANIC ADJUSTED ADJUSTED SALES GROWTH EBIT MARGIN EPS1 GROUP 1.5 to 3.5% 14.0 to 15.5% Low to high single-digit % increase ADHESIVE TECHNOLOGIES 2.0 to 4.0% 16.0 to 17.5% CONSUMER BRANDS 1.0 to 3.0% 13.5 to 15.0% 25 HENKEL Q1 2025 1 Per preferred share, at constant exchange rates
Slide 26: Agenda
AGENDA 01 Key Developments 02 Business Performance Q1 2025 & Outlook 03 Key Take-Aways & Closing 26 HENKEL Q1 2025
Slide 27: Key take-aways
KEY TAKE-AWAYS ▪ Organic sales growth reflecting softer start in challenging market environment as expected, while margins remain strong ▪ Adhesive Technologies with positive pricing and volume development despite negative working day impact ▪ Consumer Brands reflecting high prior-year comparables;
Slide 28: Questions & Answers
QUESTIONS & ANSWERS 28 HENKEL Q1 2025
Slide 29: Upcoming events
UPCOMING EVENTS Tbd – HAT Teach-in? 2025 MAY 8 | Q1 2025 RELEASE Quarterly Statement AUG 7 | HY 2025 RELEASE Half-Year Report NOV 6 | Q3 2025 RELEASE Quarterly Statement 2026 MAR 11 | FY 2025 RELEASE Annual Report 29 HENKEL Q1 2025
Slide 30: Thank you
THANK YOU. 30 HENKEL Q1 2025
Slide 31: Organic sales growth and nominal sales Q1 2025
ORGANIC SALES GROWTH AND NOMINAL SALES Q1 2025 Sales Organic sales Q1 2024 Q1 2025 +/- growth HENKEL GROUP 5,317 5,242 -1.4% -1.0% ADHESIVE TECHNOLOGIES 2,677 2,715 1.4% 1.1% MOBILITY & ELECTRONICS 946 966 2.1% 3.1% PACKAGING & CONSUMER GOODS 838 804 -4.1% -0.4% CRAFTSMEN, CONSTRUCTION & PROFESSIONA
Slide 32: Outlook 2025 additional input for selected KPIs
OUTLOOK 2025 ADDITIONAL INPUT FOR SELECTED KPIS CURRENCY IMPACT ON SALES Flat to low single-digit % negative1 M&A IMPACT ON SALES Low single-digit % negative PRICES FOR DIRECT MATERIALS Low to mid-single-digit % increase1 RESTRUCTURING CHARGES € 200 – 250m CAPEX € 650 – 750m 32 HENKEL Q1 2025 1 Vers
Slide 33: Balanced and diversified portfolio
BALANCED AND DIVERSIFIED PORTFOLIO FY 2024 37% 1% 51% 48% ADHESIVE €21.6bn CONSUMER 28% SALES TECHNOLOGIES BRANDS 30% 31% 16% 8% 1% 11% Corporate €11.0bn €10.5bn SALES 34% SALES 6% 36% 63% Europe Asia/Pacific IMEA Latin America Mobility & Electronics Laundry & Home Care North America Corporate Packa
Slide 34: Find out more on henkel.com/ir
FIND OUT MORE ON HENKEL.COM/IR