Henkel Delivers Strong First-Quarter Sales Performance Amid COVID-19

Henkel business performance was affected by the COVID-19 pandemic in the first quarter of fiscal year 2020. Group-wide sales declined nominally by 0.8 percent to EUR 4.9 billion. Despite the impacts of the COVID-19 pandemic, sales declined organically by only 0.9 percent compared to the same quarter of the previous year.

"Primary objective is to focus on employee health and safety during the COVID-19 pandemic"

Henkel CEO Carsten Knobel stated, "At present, we are facing a very challenging situation. The COVID-19 pandemic has impacted every area of life and has also dealt a serious blow to the global economy. Nevertheless, we demonstrated strong sales performance in the first quarter. During this crisis period, the health and safety of our employees, customers and business partners are at the top of our priorities. In the early stages of this process, we implemented comprehensive protective measures. At the same time, we did everything possible to continue our operations and serve our customers despite these difficult conditions. Additionally, we launched a global solidarity programme that includes product donations and financial support. Finally, we began implementing our new strategic framework in the first quarter," he said.

"Our new strategic framework is focused on purpose-driven growth"

Henkel demonstrated strong sales performance in the first quarter amid a challenging market environment. Adhesive Technologies was significantly affected by a notable decline in demand, largely from the automotive sector. Beauty Care sales also showed a decline over the year. The Professional business unit suffered considerably as hairdressing salons were forced to close in many countries. Conversely, organic sales growth in branded consumer products was at the same level compared to the same quarter of the previous year. Thanks to strong demand for laundry detergents and home cleaning products, Laundry and Home Care demonstrated quite strong organic sales growth. Knobel continued his remarks, "As the crisis evolves, we will continue to adapt and respond swiftly and flexibly to changes in markets. With our dedicated global team, our new strategic framework focused on purpose-driven growth and our strong balance sheet, we are positioned to cope with this difficult situation and emerge from this crisis stronger." he added.

Group-Wide Sales Performance

Group-wide sales declined nominally by 0.8 percent in the first quarter of 2020, reaching EUR 4.927 billion compared to EUR 4.969 billion in the first quarter of 2019. Organically (adjusted for currency effects and acquisitions and disposals), sales declined by 0.9 percent. The decline at group level was price-driven, with price and volume changes varying between business units. Acquisitions and disposals contributed 0.4 percent to sales growth. Currency effects reduced sales by 0.4 percent.