Henkel reported significant sales growth and improved profit margins in the first half of 2025.
More specifically, the Group’s organic sales in the first half of 2025 amounted to 10.4 billion euros, operating profit (EBIT) increased to 1.614 billion (+0.2%), the EBIT margin rose 15.5% (+60 basis points).
The company’s results were driven by its strategy with a clear focus on global trends such as mobility, connectivity, digitalization, urbanization and sustainability, the strengthening of the competitiveness and resilience of the Adhesive Technologies business unit, as well as the significant volume growth of the Consumer Brands business unit, with the company’s top 10 brands recording high organic sales growth.
Henkel CEO Carsten Knobel stated: “The increase in organic sales growth came from both business units, with the gradual increase in volume in the Consumer Brands business unit standing out. Together with the positive price development, this also led to strong organic sales growth in the second quarter.
The Adhesive Technologies business unit achieved positive organic sales growth in the first half of the year, thanks to a balanced price and volume development.”
He added that “we significantly increased the EBIT margin in the first half of the year. This growth was mainly due to strong gross margins in our two business units and a favorable business mix. We further improved our profit efficiency and are on track to meet or even exceed the savings targets in the Consumer Brands business unit. At the same time, we continue to invest in our brands and technologies with the aim of strengthening our future growth capabilities.”
New guidance for fiscal year 2025
For the full year, the company expects organic sales growth of 1.0% – 2.0% (previous estimate: 1.5–3.5%), adjusted gross profit margin: 14.5 to 15.5% (previous estimate: 14.0% to 15.5%), adjusted earnings per preferred share (EPS): low to high single-digit growth at constant exchange rates (unchanged).
Explaining the new guidance for 2025, Carsten Knobel emphasized that “we expect further profitable growth for fiscal year 2025, while in the second half of the year, we anticipate stronger sales growth. Of course, for our forecasts, we have taken into account, on the one hand, the impact of the challenging macroeconomic environment on the organic sales growth of our two business units, and on the other hand, the increased profitability expectation reflecting the positive development of the gross profit margin, the benefits of our portfolio optimization and the efficiency improvements within the company. At the same time, our new forecasts are aligned both with the changes in global trade agreements, but also, in general, with the current market expectations for Henkel’s business development during the year.”
