Henkel Reports Decreased Sales and Future Growth Projection

Henkel AG & Co. KGaA reports a 5.2% drop in Q1 sales amidst ongoing geopolitical challenges. Investors should note the reliance on future organic growth expectations and adjusted earnings per share which offer a cautious outlook.

Date: 08-05-2025

AI Rating: 5

The latest report indicates Henkel AG experienced a 5.2% decline in group sales, resulting in revenues of approximately 5.24 billion euros. This drop is reflective of the ongoing geopolitical and macroeconomic challenges the company faces. Notably, this is a significant change from the previous year's sales of 5.32 billion euros.

From an investor's perspective, it is crucial to consider the organic sales growth figures across various regions. The company exhibited varied performance; while Europe encountered a decline of 2.0%, the IMEA region saw growth of 4.6%, but North America faced a more significant decrease, down 5.6%. Furthermore, sales in Latin America and the Asia-Pacific region saw organic growth of 1.5% and 3.6%, respectively.

Henkel's business segments also reported mixed outcomes. Adhesive Technologies experienced a 4.1% drop in sales to 2.72 billion euros yet showed a positive sign with 1.1% organic growth. Meanwhile, Consumer Brands saw a sales decline of 4.6% to 2.48 billion euros and a 3.5% organic sales decrease.

For fiscal 2025, Henkel maintains an optimistic forecast of organic sales growth between 1.5% and 3.5% and aims for an adjusted EBIT margin of 14.0% to 15.5%. Investors should note that the projections of adjusted earnings per preferred share are expected to increase in the low to high single-digit percentage range at constant exchange rates. This optimistic outlook on earnings per share, despite current difficulties, could reassure some investors about potential recovery, while they must remain cautious of the challenging backdrop.

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