Henkel Implements Strategic Growth Agenda

Henkel Executes Strategic Growth Agenda Following a strong start to the 2021 financial year, Henkel accelerated growth once again in the first half of the year by adapting to currency effects. In doing so, it surpassed pre-crisis levels from 2019. Despite the adverse social and economic impacts created by the Covid-19 pandemic worldwide, Henkel demonstrated significant sales and profit growth in the first half of the year. In the first six months of 2021, organic sales growth was recorded at 11.3%. At group level, sales increased nominally by 4.7%, reaching approximately EUR 10 billion. Adjusted operating profit increased by 20.1%, reaching EUR 1.430 billion. The earnings margin before interest and tax rose by 1.9 percentage points to 14.4%. This represented an increase of 1.9 percentage points compared to the same period last year. Earnings per preferred share on a fixed-rate basis showed an increase of 30.1%. The impacts of rising raw material costs in the first half of the year were offset by strong volume growth, price increases, rigorous cost management and improved efficiency. Henkel CEO Carsten Knobel stated: "In the first half of 2021, Henkel continued to be affected by the Covid-19 pandemic. However, despite this, we achieved double-digit percentage growth in both sales and earnings. On a currency-adjusted basis, we succeeded in surpassing pre-crisis 2019 levels. This success was achieved thanks to our outstanding team spirit and the commitment demonstrated by our employees worldwide, as well as our balanced and strong portfolio of successful brands and innovative technologies offered to our customers in our consumer and industrial business units." All business units and regions contributed to organic sales growth achieved in the first half of 2021. The Adhesive Technologies business unit was the strongest performer in sales growth during the first half of the year.

2021 financial year outlook updated: earnings per share target unchanged but higher sales growth anticipated.

Assessing the remainder of the 2021 financial year, Carsten Knobel stated: "We are seeing a general normalization in demand in most of our business areas. Similarly, we are responding flexibly and quickly to changes in the markets where we operate and are consistently implementing our growth agenda. Today, taking into account the current environment and the very strong performance demonstrated in the first half of the year, we have updated our targets for the full year. Despite fluctuations in raw material costs, we have revised our sales forecast to a more positive level while maintaining our expectations regarding earnings per share."

Targeted Growth Agenda: Good Progress

Henkel is accelerating strong innovations to strengthen competitive advantage. It is also increasing sustainability as a differentiating factor and managing the company's digital transformation. At the center of Henkel's strategy lies significant differentiation achieved through successful innovations in the market. These innovations supported growth significantly in the first half of the year. Henkel recorded mid-double-digit percentage growth in Adhesive Technologies with innovative thermal interface materials for 5G applications. Under the Beauty Care, Natural & Easy and Palette brands, strong innovations delivered above-market performance in the hair coloring segment. In doing so, it increased its market share compared to the pre-Covid-19 period. In the professional business unit, the relaunch of the IGORA Royal brand contributed to growth. The Laundry and Home Care business unit expanded its global market share in the dishwashing segment with support from successful innovations such as Somat Excellence 4in1 Caps and Pril Antibacterial.