Henkel Ag & Co. Kgaa · XETR:HEN
Henkel Ag & Co. Kgaa — Q3 2024 Earnings Presentation
32 slides from Henkel Ag & Co. Kgaa's earnings presentation, Nov 6, 2024
Slide 1: Henkel Q3 2024
HENKEL Q3 2024 CARSTEN KNOBEL, MARCO SWOBODA – 6 NOVEMBER 2024
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 Q3 2024 & Outlook 03 Key Take-Aways & Closing 3 HENKEL Q3 2024
Slide 4: At a glance
AT A GLANCE Q3 2024 performance ▪ Strong organic sales growth in challenging market environment driven by both businesses HENKEL ADHESIVE CONSUMER ▪ Good pricing – with resilient development in Adhesive GROUP TECHNOLOGIES BRANDS Technologies and still very strong in Consumer Brands NOMINAL NOMINAL N
Slide 5: Driving our businesses along clear strategic priorities to fuel further profitable growth
DRIVING OUR BUSINESSES ALONG CLEAR STRATEGIC PRIORITIES TO FUEL FURTHER PROFITABLE GROWTH Selective highlights Adhesive Technologies Strong growth dynamics of Hair with outperforming markets with top brands reflecting successful 5th consecutive quarter of innovations and sustainability leadership va
Slide 6: Adhesive Technologies outperforming markets with unique solution portfolio
ADHESIVE TECHNOLOGIES OUTPERFORMING MARKETS WITH UNIQUE SOLUTION PORTFOLIO SHAPING PIONEERING INVESTING IN HIGH-GROWTH MARKETS SUSTAINABILITY FUTURE GROWTH WITH INNOVATIONS ACROSS INDUSTRIES MARKETS e.g., enabling advanced e.g., innovating more sustainable e.g., strengthening MRO portfolio technolog
Slide 7: Pioneering high-performance solutions in aerospace
PIONEERING HIGH-PERFORMANCE SOLUTIONS IN AEROSPACE Aviation Aircraft safeguarded from lightning strike with innovative Global commercial airline fleet expected to surface film solution DOUBLE IN NEXT 20 YEARS DOUBLE-DIGIT GROWTH 1-9/2024 in surface film solutions, e.g., innovative LIGHTNING STRIKE P
Slide 8: Innovations enabling emission reduction fueling growth in footwear
INNOVATIONS ENABLING EMISSION REDUCTION FUELING GROWTH IN FOOTWEAR Sports footwear with DOUBLE-DIGIT organic sales growth 1-9/2024 Majority of shoes’ CO2 footprint generated during manufacturing – HIGH POTENTIAL & DEMAND FOR EMISSION REDUCTION Innovative COOLX SOLUTION enabling up to 45% ENERGY SAVI
Slide 9: Performance of top 10 brands reflecting successful valorization of Consumer Brands portfolio
PERFORMANCE OF TOP 10 BRANDS REFLECTING SUCCESSFUL VALORIZATION OF CONSUMER BRANDS PORTFOLIO STRONG INNOVATIONS ACROSS CATEGORIES TOP 10 BRANDS CONTINUE TO OUTPERFORM WITH HIGH SINGLE-DIGIT organic sales growth incl. positive volume contribution 1-9/2024 BENEFITTING FROM INCREASED AND MORE FOCUSED M
Slide 10: Driving valorization with tech-driven innovations in dishwashing with Somat
DRIVING VALORIZATION WITH TECH-DRIVEN INNOVATIONS IN DISHWASHING WITH OUR LEADING BRAND SOMAT #1 / #2 POSITION IN >70% of active markets Roll-out of new 5IN1 CAPS – TOP-TIER PERFORMANCE with extra boost against dried-on stains Driving GROWTH AND PREMIUMIZATION with strong investments Somat deliverin
Slide 11: Strengthening North American hair professional business under Joico brand
STRENGTHENING NORTH AMERICAN HAIR PROFESSIONAL BUSINESS WITH STRONG INNOVATION UNDER JOICO BRAND Henkel is #2 PLAYER IN NORTH AMERICAN HAIR PROFESSIONAL MARKET – with key brands like Joico REINFORCING JOICO‘S POSITIONING in healthy hair and bond-building with strong innovation broadening Defy Demage
Slide 12: Net-zero roadmap – extending our targets for emissions reduction along the value chain
NET-ZERO ROADMAP – EXTENDING OUR TARGETS FOR EMISSIONS REDUCTION ALONG THE VALUE CHAIN New targets validated by Science Based Targets initiative (SBTi): Our climate transition plan: New emission reduction Introduction of targets by 2030: net-zero target by 2045: Reduce absolute Reduce absolute Reduc
Slide 13: Strong business performance while delivering on our strategic priorities
STRONG BUSINESS PERFORMANCE WHILE DELIVERING ON OUR STRATEGIC PRIORITIES Strong Shaping a Fueling growth with Driving our Confident on organic sales growth winning portfolio relevant innovations net-zero roadmap FY2024 outlook 13 HENKEL Q3 2024
Slide 14: Agenda
AGENDA 01 Key Developments 02 Business Performance Q3 2024 & Outlook 03 Key Take-Aways & Closing 14 HENKEL Q3 2024
Slide 15: Strong organic sales growth driven by price and volume
STRONG ORGANIC SALES GROWTH DRIVEN BY PRICE AND VOLUME Q3 2024 3.3% 1.2% -3.6% 1.0% OSG A&D FX NOMINAL PRICE VOLUME SALES 2.1% 1.2% €5.5bn 15 HENKEL Q3 2024
Slide 16: Organic sales growth across regions
ORGANIC SALES GROWTH ACROSS REGIONS Q3 2024 Organic sales growth Europe 0.7% North America -1.7% IMEA 19.6% Asia-Pacific 6.4% Latin America 6.1% 16 HENKEL Q3 2024
Slide 17: Adhesive Technologies Q3 2024
In progress ADHESIVE TECHNOLOGIES Q3 2024 NOMINAL SALES €2.8bn ORGANIC SALES GROWTH 3.7% PRICE VOLUME -0.2% 3.9% 17 HENKEL Q3 2024
Slide 18: Adhesive Technologies
ADHESIVE TECHNOLOGIES Q3 2024 – Price/Volume Development in % OSG 6.8 2.7 0.8 2.8 1.3 2.6 3.7 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 ▪ Resilient pricing – underpinning strength of our 12 11,4 market position and portfolio 9,0 8 ▪ Strong volume development – 4,9 0,2 continued sequential improvemen
Slide 19: Adhesive Technologies
ADHESIVE TECHNOLOGIES Q3 2024 – Business Area Performance MOBILITY & PACKAGING & CRAFTSMEN, ELECTRONICS CONSUMER GOODS CONSTRUCTION & PROF. SALES OSG SALES OSG SALES OSG €989m 3.9% €841m 2.7% €969m 4.5% Strong growth driven by Good growth in Packaging Growth backed by all businesses; Electronics and
Slide 20: Consumer Brands Q3 2024
New layout – contentIn to progress be updated CONSUMER BRANDS Q3 2024 NOMINAL SALES €2.7bn ORGANIC SALES GROWTH 2.7% PRICE VOLUME 4.4% -1.7% 20 HENKEL Q3 2024
Slide 21: Consumer Brands
CONSUMER BRANDS Q3 2024 – Price/Volume Development in % OSG 7.0 4.5 6.2 6.9 5.2 3.3 2.7 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 ▪ Continued strong pricing backed by value-adding 16 15,4 innovations 12,7 11,9 12 9,5 ▪ Volume development flat when adjusting for 8 6,2 impact from portfolio measures i
Slide 22: Consumer Brands
CONSUMER BRANDS Q3 2024 – Business Area Performance LAUNDRY & HAIR OTHER CONSUMER HOME CARE BUSINESSES SALES OSG SALES OSG SALES OSG €1,649m 0.9% €829m 6.8% €175m 2.0% Significant growth in Home Care Significant increase in Consumer Good growth overall, driven by Dishwashing and Toilet mainly driven
Slide 23: Outlook 2024
OUTLOOK 2024 ORGANIC ADJUSTED ADJUSTED SALES GROWTH EBIT MARGIN EPS1 GROUP 2.5 to 4.5% 13.5 to 14.5% +20 to +30% ADHESIVE TECHNOLOGIES 2.0 to 4.0% 16.0 to 17.0% CONSUMER BRANDS 3.0 to 5.0% 13.0 to 14.0% Outlook for 2024 reiterated: ▪ Well within top-line guidance ranges ▪ Backed by strong YTD perfor
Slide 24: Agenda
AGENDA 01 Key Developments 02 Business Performance Q3 2024 & Outlook 03 Key Take-Aways & Closing 24 HENKEL Q3 2024
Slide 25: Key take-aways
KEY TAKE-AWAYS ▪ Strong organic sales growth in challenging market environment driven by both businesses ▪ Pricing with resilient development in Adhesive Technologies and still very strong in Consumer Brands ▪ Volume development reflecting robust and broad portfolio in Adhesive Technologies; continu
Slide 26: Questions & Answers
QUESTIONS & ANSWERS 26 HENKEL Q3 2024
Slide 27: Upcoming events
UPCOMING EVENTS Tbd – HAT Teach-in? 2024 NOV 6 | Q3 2024 RELEASE Quarterly Statement 2025 MAR 11 | FY 2024 RELEASE Annual Report APR 28 | AGM Annual General Meeting MAY 8 | Q1 2025 RELEASE Quarterly Statement 27 HENKEL Q3 2024
Slide 28: Thank you
THANK YOU. 28 HENKEL Q3 2024
Slide 29: Sales by business unit and business area Q1 2024 – Q3 2024
SALES BY BUSINESS UNIT AND BUSINESS AREA Q1 2024 – Q3 2024 - Q1 2024 Q2 2024 H1 2024 Q3 2024 1-9 2024 €m Sales YoY OSG Sales YoY OSG Sales YoY OSG Sales YoY OSG Sales YoY OSG HENKEL GROUP 5,317 -5.2% 3.0% 5,496 3.4% 2.8% 10,813 -1.0% 2.9% 5,492 1.0% 3.3% 16,305 -0.4% 3.0% ADHESIVE 2,677 -4.1% 1.3% 2
Slide 30: Outlook 2024 additional input for selected KPIs
OUTLOOK 2024 ADDITIONAL INPUT FOR SELECTED KPIS CURRENCY IMPACT ON SALES low- to mid single-digit % negative1 A&D IMPACT ON SALES flat1 PRICES FOR DIRECT MATERIALS flat1 RESTRUCTURING CHARGES € 250 – 300m CAPEX € 650 – 750m 30 HENKEL Q3 2024 1 Versus the prior year average
Slide 31: Balanced and diversified portfolio
BALANCED AND DIVERSIFIED PORTFOLIO FY 2023 1% 38% 50% 49% ADHESIVE €21.5bn CONSUMER 28% SALES TECHNOLOGIES BRANDS 32% 29% 15% 8% 1% 10% Corporate €10.8bn €10.6bn SALES 33% SALES 7% 36% 64% Europe Asia/Pacific IMEA Latin America Mobility & Electronics Laundry & Home Care North America Corporate Packa
Slide 32: Find out more on henkel.com/ir
FIND OUT MORE ON HENKEL.COM/IR