Henkel delivered an overall good performance in a challenging fiscal 2025, characterized by moderate global economic growth and a complex geopolitical environment. Group sales amounted to around 20.5 billion euros, with organic growth of 0.9 percent. The adjusted EBIT margin increased by 50 basis points to 14.8 percent, and adjusted earnings per preferred share at constant exchange rates rose by 4.7 percent.
“Our business environment has been and continues to be marked by major challenges, including military conflicts, geopolitical tensions in many parts of the world, and far-reaching trade and tariffs conflicts. The resulting uncertainties weakened consumer sentiment and industrial demand,” said Henkel CEO Carsten Knobel. Despite these headwinds, Henkel achieved or exceeded key targets, driven by innovation, cost-saving measures, and efficiency improvements. The company also completed the merger of its consumer businesses ahead of schedule and made strategic acquisitions to strengthen growth potential.
The Adhesive Technologies business unit generated organic sales growth of 1.5 percent, driven by the Mobility & Electronics business area. The Consumer Brands business unit posted positive organic sales growth of 0.3 percent, led by the Hair business area. Adjusted operating profit (EBIT) was 3.0 billion euros, slightly below the prior year due to significantly negative foreign exchange effects, but the adjusted EBIT margin improved to 14.8 percent from 14.3 percent. Free cash flow was strong at about 1.9 billion euros, and the company proposed a dividend increase of 1.5 percent to 2.07 euros per preferred share.
Henkel continued to implement its Purposeful Growth Agenda, making progress in portfolio management, innovation, sustainability, and digitalization. The company divested its Retailer Brands business in North America and agreed to acquire ATP Adhesive Systems AG, Stahl Group, and “Not Your Mother’s” hair care brand, representing a combined additional sales volume of around 1.2 billion euros. These acquisitions advance growth potential for both business units.
Innovation remains a key focus, with examples including the new Creme Supreme hair coloration from Schwarzkopf and the opening of an Inspiration Center in Shanghai for Adhesive Technologies. In sustainability, Henkel aims to reduce absolute greenhouse gas emissions by 90 percent by 2045 and has already reduced emissions by 29 percent since 2021. The company received an A rating in the Climate category of the 2025 CDP assessment and was awarded Gold in the EcoVadis assessment.
Looking ahead to fiscal 2026, Henkel expects organic sales growth of 1.0 to 3.0 percent, an adjusted EBIT margin of 14.5 to 16.0 percent, and an increase in adjusted earnings per preferred share in the low to high single-digit percentage range at constant exchange rates. The company also plans to celebrate its 150th anniversary in 2026, emphasizing its pioneering spirit for future generations.
For more information, visit Henkel's website or view the original release on NewMediaWire.
