Henkel Ag & Co. Kgaa · XETR:HEN
Henkel Ag & Co. Kgaa — Q1 2024 Earnings Presentation
34 slides from Henkel Ag & Co. Kgaa's earnings presentation, May 8, 2024
Slide 1: Henkel Q1 2024
HENKEL Q1 2024 CARSTEN KNOBEL, MARCO SWOBODA – 8 MAY 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 Q1 2024 & Outlook 03 Key Take-Aways & Closing 3 HENKEL Q1 2024
Slide 4: At a Glance
AT A GLANCE Q1 2024 performance reflects sustained growth momentum ▪ Strong organic sales growth supported by pricing HENKEL ADHESIVE CONSUMER in both business units GROUP TECHNOLOGIES BRANDS ▪ Volume development with further sequential improvement NOMINAL NOMINAL NOMINAL vs Q4 2023 – reaching posit
Slide 5: Raised Outlook for FY 2024
RAISED OUTLOOK FOR FY 2024 EXPECTING EVEN STRONGER GROWTH AND PROFITABILITY ORGANIC SALES GROWTH Drivers for outlook upgrade 2.5 to 4.5% ▪ More robust performance in Adhesive Technologies including better mix (e.g. recovery of Electronics business) ADJUSTED EBIT MARGIN and strong gross margins in st
Slide 6: Advancing Our Businesses Along Clear Strategic Priorities
ADVANCING OUR BUSINESSES ALONG CLEAR STRATEGIC PRIORITIES Selective highlights ADHESIVE TECHNOLOGIES CONSUMER BRANDS New Inspiration Innovations in our core Driving integration of Strong performance Centers expand global categories fueling consumer business in Automotive & R&D footprint & drive grow
Slide 7: Expanding Our Network of Innovation Centers in Adhesive Technologies
EXPANDING OUR NETWORK OF STATE-OF-THE-ART INNOVATION CENTERS IN ADHESIVE TECHNOLOGIES… ▪ APAC regional hub for innovation, inspiration & customer interaction ▪ >400 R&D experts working with customers from all industries ▪ Gradual opening in 2024 INSPIRATION CENTER SHANGHAI, CHINA ▪ Co-innovating wit
Slide 8: Driving Customer-Relevant Solutions for Lighter, Safer Vehicles
…DRIVING CUSTOMER-RELEVANT SOLUTIONS – ENABLING LIGHTER, SAFER & MORE SUSTAINABLE VEHICLES OEMs demanding LIGHTWEIGHT COMPONENTS for car manufacturing POST CAR ASSEMBLY: Foam cured after e-coat oven Structural solutions OUTPERFORMING THE MARKET with DOUBLE-DIGIT GROWTH Innovative structural foam sol
Slide 9: Designing Packaging Alternatives with Paper – EPIX Technology Platform
DESIGNING PACKAGING ALTERNATIVES WITH PAPER – EPIX TECHNOLOGY PLATFORM Ever increasing demand for CONVENIENCE & EPIX THERMAL INSULATION HOME DELIVERY requires innovative Double-walled SUSTAINABLE PACKAGING solutions cups offer higher temperature resistance EPIX TECHNOLOGY PLATFORM unlocking SUBSTANT
Slide 10: Offering Highly Efficient Hotmelts for Furniture Production
OFFERING HIGHLY EFFICIENT HOTMELTS FOR FURNITURE PRODUCTION ENABLING RESOURCE-EFFICIENT, LIGHTWEIGHT FURNITURE PRODUCTS SUSTAINABILITY AND e.g. by replacing solid or chipboard with paper honeycomb substrates COST-EFFECTIVENESS drive differentiation in the furniture market MID-SINGLE-DIGIT ORGANIC SA
Slide 11: Technology Leadership in Consumer Brands Supported by Global R&D Network
TECHNOLOGY LEADERSHIP IN CONSUMER BRANDS SUPPORTED BY GLOBAL R&D NETWORK Global network driving innovations along technology roadmaps INNOVATION CENTER SHANGHAI, CHINA ▪ Asia-based R&D center opened January 2024 supporting Hair and Laundry & Home Care 15 ~1,000 >€200m >300 ▪ State-of-the-art facilit
Slide 12: Driving Valorization of Consumer Portfolio with Innovations like Perwoll
DRIVING VALORIZATION OF CONSUMER PORTFOLIO WITH STRONG INNOVATIONS IN KEY BRANDS LIKE PERWOLL… #1 in Fabric Care 1 Underpinning TECHNOLOGY LEADERSHIP with new RENEW FORMULA – backed by strong marketing campaign DOUBLE-DIGIT organic sales growth in Q1 Perwoll gaining +170 BPS market share YTD 12 HENK
Slide 13: All Free Clear in North America
…ALL FREE CLEAR IN NORTH AMERICA… #1 in Sensitive Skin segment ALL® RELAUNCH in 2023 – reinforcing the brand’s top recommendation by dermatologists and broader reach DOUBLE-DIGIT organic sales growth in Q1 2024 Market share increase of +30 BPS YTD within Fabric Cleaning segment 13 HENKEL Q1 2024
Slide 14: Expansion of Kenra in Hair Care in North America
…AND EXPANSION OF KENRA IN HAIR CARE IN NORTH AMERICA #1 PROFESSIONAL STYLING BRAND in North America1 Launch of extended KENRA CARE LINE – your hair deserves it all with complete range of Shampoos & Conditioners with protective peptides & amino acids Triple Repair with PATENTED DUALBOND COMPLEX to r
Slide 15: Very Strong Start to the Year – Looking Ahead with Confidence
VERY STRONG START TO THE YEAR – LOOKING AHEAD WITH CONFIDENCE DELIVERING ON OUR STRONG SET OF RESULTS STRATEGIC PRIORITIES IN Q1 2024 AND COMMITMENTS CLEARLY RAISED CONTINUOUSLY INVESTING OUTLOOK FOR FY 2024 IN OUR BUSINESSES ON BOTH TOP- AND BOTTOM-LINE WELL ON TRACK TO DRIVE PROFITABLE GROWTH 15 H
Slide 16: Agenda
AGENDA 01 Key Developments 02 Business Performance Q1 2024 & Outlook 03 Key Take-Aways & Closing 16 HENKEL Q1 2024
Slide 17: Strong Organic Sales Growth Driven by Pricing
STRONG ORGANIC SALES GROWTH DRIVEN BY PRICING Q1 2024 3.0% -4.3% -3.9% -5.2% OSG M&A FX NOMINAL PRICE VOLUME SALES 3.4% -0.4% €5.3bn 17 HENKEL Q1 2024
Slide 18: Organic Sales Growth Across Regions
ORGANIC SALES GROWTH ACROSS REGIONS Q1 2024 Organic sales growth Europe 2.5% North America -3.0% IMEA 26.9% Asia-Pacific 3.5% Latin America -2.7% 18 HENKEL Q1 2024
Slide 19: Adhesive Technologies Q1 2024
In progress ADHESIVE TECHNOLOGIES Q1 2024 NOMINAL SALES €2.7bn ORGANIC SALES GROWTH 1.3% PRICE VOLUME 1.0% 0.3% 19 HENKEL Q1 2024
Slide 20: Adhesive Technologies – Price/Volume Development
ADHESIVE TECHNOLOGIES Q1 2024 – Price/Volume Development in % OSG 6.8 2.7 0.8 2.8 1.3 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 12 ▪ Overall resilient pricing – underpinning strength of our market position and portfolio 8 ▪ Positive volume development – 11,4 4 9,0 continued sequential improvement vs. Q4 2023 4,
Slide 21: Adhesive Technologies – Business Area Performance
ADHESIVE TECHNOLOGIES Q1 2024 – Business Area Performance MOBILITY & PACKAGING & CRAFTSMEN, ELECTRONICS CONSUMER GOODS CONSTRUCTION & PROF. SALES OSG SALES OSG SALES OSG €946m 3.7% €838m -0.2% €893m 0.3% Growth driven by Automotive Positive growth in Packaging Good growth in Construction; and Electr
Slide 22: Consumer Brands Q1 2024
New layout – contentIn to progress be updated CONSUMER BRANDS Q1 2024 NOMINAL SALES €2.6bn ORGANIC SALES GROWTH 5.2% PRICE VOLUME 6.2% -1.0% 22 HENKEL Q1 2024
Slide 23: Consumer Brands – Price/Volume Development
CONSUMER BRANDS Q1 2024 – Price/Volume Development in % OSG 7.0 4.5 6.2 6.9 5.2 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 16 ▪ Continued strong pricing backed by value-adding innovations 12 ▪ Further sequential improvement in 8 15,4 12,7 11,9 volume development vs Q4 2023 4 9,5 6,2 ▪ Volume development reaching
Slide 24: Consumer Brands – Business Area Performance
CONSUMER BRANDS Q1 2024 – Business Area Performance LAUNDRY & HAIR OTHER CONSUMER HOME CARE BUSINESSES SALES OSG SALES OSG SALES OSG €1,661m 4.6% €781m 6.9% €163m 3.4% Laundry Care with strong growth Significant increase in Consumer Strong growth driven by driven by Fabric Care; significant mainly d
Slide 25: Outlook 2024
OUTLOOK 2024 ORGANIC ADJUSTED ADJUSTED SALES GROWTH EBIT MARGIN EPS1 GROUP 2.5 to 4.5% 13.0 to 14.0% +15 to +25% previously: 2.0 to 4.0% previously: 12.0 to 13.5% previously: +5 to +20% ADHESIVE 2.0 to 4.0% 16.0 to 17.0% TECHNOLOGIES unchanged previously: 15.0 to 16.5% CONSUMER 3.0 to 5.0% 12.0 to 1
Slide 26: Agenda
AGENDA 01 Key Developments 02 Business Performance Q1 2024 & Outlook 03 Key Take-Aways & Closing 26 HENKEL Q1 2024
Slide 27: Key Take-Aways
KEY TAKE-AWAYS ▪ Strong organic sales growth driven by both Adhesive Technologies and Consumer Brands ▪ Continued positive price development and sequentially improved volume development in both businesses ▪ Acquisitions of Seal for Life Industries and Vidal Sassoon in China closed earlier than antic
Slide 28: Questions & Answers
QUESTIONS & ANSWERS 28 HENKEL Q1 2024
Slide 29: Upcoming Events
UPCOMING EVENTS What‘s next 2024 MAY 8 | Q1 2024 RELEASE AUG 13 | H1 2024 RELEASE NOV 6 | Q3 2024 RELEASE 2025 MAR 11 | FY 2024 RELEASE 29 HENKEL Q1 2024
Slide 30: Thank You
THANK YOU. 30 HENKEL Q1 2024
Slide 31: Organic Sales Growth and Nominal Sales Q1 2024
ORGANIC SALES GROWTH AND NOMINAL SALES Q1 2024 Sales Organic sales Q1 2023 Q1 2024 +/- growth HENKEL GROUP 5.609 5.318 -5.2% 3.0% ADHESIVE TECHNOLOGIES 2.791 2.677 -4.1% 1.3% MOBILITY & ELECTRONICS 959 946 -1.4% 3.7% PACKAGING & CONSUMER GOODS 884 838 -5.2% -0.2% CRAFTSMEN, CONSTRUCTION & PROFESSION
Slide 32: Outlook 2024 Additional Input for Selected KPIs
OUTLOOK 2024 ADDITIONAL INPUT FOR SELECTED KPIS low- to mid single-digit % negative1 CURRENCY IMPACT ON SALES previously: mid single-digit % negative flat1 M&A IMPACT ON SALES previously: low single-digit % negative PRICES FOR DIRECT MATERIALS flat1 RESTRUCTURING CHARGES € 250 – 300m CAPEX € 650 – 7
Slide 33: 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 34: Find Out More on henkel.com/ir
FIND OUT MORE ON HENKEL.COM/IR