Henkel AG & Co. KGaA, DE0006048432

Henkel AG & Co. KGaA, DE0006048432

08.11.2022 - 07:34:08

EQS-News: Henkel AG & Co. KGaA: Henkel successfully maintains growth momentum with double-digit sales increase in the third quarter

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Group sales performance

In the third quarter of 2022, Group sales increased nominally by +17.3 percent to 5,976?million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by +11.3?percent. At Group level, the increase was driven by price, while volume developments differed among the business units. Acquisitions and divestments reduced sales by -0.6?percent. By contrast, foreign exchange effects had a positive impact of +6.6?percent on sales.

In the first nine months of 2022, sales increased nominally by +12.5?percent to 16,889 million euros. In organic terms, Henkel generated a significant sales growth of +9.7?percent, which was driven by price, while volumes declined.

Group sales performance1 ? ? ? ? in million euros ? Q3/2022 ? 1?9/2022 Sales ? 5,976 ? 16,889 Change versus previous year ? 17.3% ? 12.5% Foreign exchange2 ? 6.6% ? 3.9% Adjusted for foreign exchange ? 10.7% ? 8.6% Acquisitions/divestments3 ? -0.6% ? -1.1% Organic ? 11.3% ? 9.7% Of which price ? 14.7% ? 11.6% Of which volume ? -3.4% ? -1.9% ? 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. 2Including the effects of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Turkey. 3Including the effects of the announced exit from business activities in Russia and Belarus.

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The emerging markets posted double-digit organic sales growth of +18.6?percent in the third quarter. The mature markets recorded organic sales growth of +5.6 percent. Sales in the Eastern Europe region increased by +25.2?percent. In the third quarter of 2022, we achieved organic sales growth of +13.2?percent in the Africa/Middle East region and +22.5?percent in the Latin America region. Organic sales development in the Asia-Pacific region amounted to +13.0?percent. In the Western Europe region, we achieved strong organic sales growth of +3.9?percent. The North America region generated a significant organic sales increase of +7.1?percent.

Sales performance by region1 in million euros ? Western Europe ? Eastern Europe ? Africa/ Middle East ? North America ? Latin America ? Asia-Pacific ? Corporate ? Henkel Group Sales? July?September 2022 ? 1,533 ? 1,001 ? 344 ? 1,548 ? 413 ? 1,071 ? 65 ? 5,976 Sales? July? September 2021 ? 1,491 ? 842 ? 299 ? 1,264 ? 306 ? 856 ? 35 ? 5,092 Change versus previous year ? 2.9% ? 18.9% ? 15.2% ? 22.5% ? 34.9% ? 25.2% ? ? ? 17.3% Organic ? 3.9% ? 25.2% ? 13.2% ? 7.1% ? 22.5% ? 13.0% ? ? ? 11.3% Proportion ofGroupsales 2022 ? 26% ? 17% ? 6% ? 26% ? 7% ? 18% ? 1% ? 100% Proportion of Group sales 2021 ? 29% ? 17% ? 6% ? 25% ? 6% ? 17% ? 1% ? 100% ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. ?By location of company.

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In the first nine months of 2022, organic sales growth in the emerging markets amounted to +14.8?percent, while the mature markets recorded an increase of +5.5?percent.

Sales performance by region1 in million euros ? Western Europe ? Eastern Europe ? Africa/ Middle East ? North America ? Latin America ? Asia-Pacific ? Corporate ? Henkel Group Sales? January?September 2022 ? 4,593 ? 2,668 ? 976 ? 4,421 ? 1,146 ? 2,910 ? 175 ? 16,889 Sales? January?September 2021 ? 4,520 ? 2,362 ? 919 ? 3,737 ? 888 ? 2,498 ? 96 ? 15,019 Change versus previous year ? 1.6% ? 12.9% ? 6.3% ? 18.3% ? 29.0% ? 16.5% ? ? ? 12.5% Organic ? 2.7% ? 23.8% ? 6.5% ? 8.5% ? 18.8% ? 8.5% ? ? ? 9.7% Proportion ofGroupsales 2022 ? 27% ? 16% ? 6% ? 26% ? 7% ? 17% ? 1% ? 100% Proportion of Group sales 2021 ? 30% ? 16% ? 6% ? 25% ? 6% ? 17% ? 1% ? 100% ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. ?By location of company.

?? Sales performance Adhesive Technologies

Sales in the Adhesive Technologies business unit increased nominally by +22.6?percent to 2,995?million euros in the third quarter of 2022. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales grew by +16.8?percent. We achieved double-digit increases in prices, while volume performance was slightly positive. Acquisitions/divestments reduced sales by -1.9?percent, whereas foreign exchange effects had a positive effect of +7.7?percent.

In the first nine months of 2022, the Adhesive Technologies business unit increased sales nominally by +17.6?percent to 8,462?million euros. Organically, we achieved sales growth of +13.7 percent. Price development was consistently strong in all regions and business areas.

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Sales performance Adhesive Technologies1 ? ? ? ? in million euros ? Q3/2022 ? 1?9/2022 Sales ? 2,995 ? 8,462 Proportion of Group sales ? 50% ? 50% Change versus previous year ? 22.6% ? 17.6% Foreign exchange2 ? 7.7% ? 5.0% Adjusted for foreign exchange ? 14.9% ? 12.6% Acquisitions/divestments3 ? -1.9% ? -1.1% Organic ? 16.8% ? 13.7% Of which price ? 15.8% ? 13.2% Of which volume ? 1.0% ? 0.5% ? 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. 2Including the effects of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Turkey. 3Including the effects of the announced exit from business activities in Russia and Belarus.

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From a regional perspective, the sales growth generated by Adhesive Technologies in the emerging markets compared to the third quarter of the prior year was in the double digits. This performance was driven by double-digit increases in all regions, with particular contributions from the Packaging & Consumer Goods and Automotive & Metal business areas.

The mature markets also achieved double-digit organic sales growth in all regions. Within the regions of North America and Western Europe, the Automotive & Metals business area recorded the strongest growth. In the mature markets of the Asia-Pacific region, double-digit growth was driven in particular by the Electronics & Industrial and Packaging & Consumer Goods business areas.

Sales performance Beauty Care

In the third quarter of 2022, sales in the Beauty Care business unit increased nominally by +8.4?percent to 1,013?million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales were up +0.9?percent compared to the prior-year level. Volumes declined, whereas the business unit recorded double-digit price increases. Foreign exchange effects increased sales by +5.9?percent, and acquisitions/divestments by a further +1.6?percent.

In the first nine months of 2022, sales in the Beauty Care business unit were nominally up +2.9?percent year on year, at 2,855 million euros. Organically, sales grew by +0.6 percent, driven by prices.

Sales performance Beauty Care1 ? ? ? ? in million euros ? Q3/2022 ? 1?9/2022 Sales ? 1,013 ? 2,855 Proportion of Group sales ? 17% ? 17% Change versus previous year ? 8.4% ? 2.9% Foreign exchange2 ? 5.9% ? 3.6% Adjusted for foreign exchange ? 2.5% ? -0.7% Acquisitions/divestments3 ? 1.6% ? -1.3% Organic ? 0.9% ? 0.6% Of which price ? 11.7% ? 8.0% Of which volume ? -10.8% ? -7.5% ? 1All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. 2Including the effects of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Turkey. 3Including the effects of the announced exit from business activities in Russia and Belarus.

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In the Consumer business area, we recorded positive organic sales growth in the third quarter of 2022 ? driven by double-digit price increases which more than offset the declining volumes resulting from the implementation of the announced portfolio measures and demand elasticity. Overall, the Hair Cosmetics category recorded very strong organic sales growth, to which all businesses contributed. The Hair Styling business generated double-digit organic sales growth, thus continuing the recovery of recent quarters following the pandemic-related decline. Organic sales performance was strong in both the Hair Colorants and Hair Care businesses, driven in particular by the emerging markets. Sales performance in the Body Care category was down year on year, mainly due to the announced portfolio optimization measures.

In the third quarter, the Professional business area was able to build on its strong performance in the first half of the year and showed good organic sales growth, driven in particular by a double-digit increase in the emerging markets.

Sales growth in the emerging markets was significant in the third quarter. All regions contributed to this performance ? with the exception of the Africa/Middle East region. The regions Asia (excluding Japan), Latin America and Eastern Europe each recorded double-digit organic sales growth.

Organic sales performance in the mature markets was down overall year on year, due in particular to a decline in Western Europe and North America. By contrast, the mature markets of the Asia-Pacific region recorded significant sales growth.

Sales performance Laundry & Home Care

The Laundry & Home Care business unit generated sales of 1,902?million euros in the third quarter of 2022, equivalent to a nominal increase of +13.2?percent compared to the prior-year quarter. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), the business unit posted a significant increase in sales of +7.3?percent. This performance was driven mainly by a double-digit percentage increase in prices, while volumes decreased. Foreign exchange effects increased sales by +5.5 percent. Acquisitions/divestments had a positive effect of +0.4?percent on sales.

In the first nine months of 2022, the Laundry & Home Care business unit recorded a nominal increase in sales of +8.9?percent to 5,396?million euros. Organically, we achieved a significant increase in sales of +7.4?percent, driven by prices.

Sales performance Laundry & Home Care? ? ? ? ? in million euros ? Q3/2022 ? 1?9/2022 Sales ? 1,902 ? 5,396 Proportion of Group sales ? 32% ? 32% Change versus previous year ? 13.2% ? 8.9% Foreign exchange2 ? 5.5% ? 2.4% Adjusted for foreign exchange ? 7.7% ? 6.5% Acquisitions/divestments3 ? 0.4% ? -0.9% Organic ? 7.3% ? 7.4% Of which price ? 14.8% ? 11.4% Of which volume ? -7.5% ? -4.0% ? ?All individual figures have been commercially rounded. Addition may result in deviations from the totals indicated. 2Including the effects of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Turkey. 3Including the effects of the announced exit from business activities in Russia and Belarus.

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The Laundry Care business area recorded double-digit organic sales growth in the third quarter of 2022 that was driven in particular by the double-digit increase in the heavy-duty detergents and specialty detergents categories. Our core brands Persil, ?all and Perwoll each achieved double-digit growth.

Organic sales performance in the Home Care business area was flat overall in the third quarter, attributable in particular to the continued strong performance of our dishwashing products with our brand families Pril and Somat. In contrast, sales performance in the hard surface cleaners and toilet cleaners categories was negative due to demand for hygiene products returning to normal following the increase in the prior-year period in response to the COVID-19 pandemic.

In the emerging markets, we achieved double-digit organic sales growth in the third quarter. The Eastern Europe, Africa/Middle East and Latin America regions each contributed double-digit organic growth to this performance.

The mature markets showed good organic sales growth overall in the third quarter. Organic sales growth was good in the North America region and flat in Western Europe. Sales growth was significant in the mature markets of the Asia-Pacific region.

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Net assets and financial position of the Group

No substantial changes to the net assets and financial position of the Group occurred in the period under review compared to the situation as at June 30, 2022.

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Outlook for the Henkel Group

Based on the business development in the first nine months of 2022 and assumptions regarding progress to the end of the fiscal year, the Management Board of Henkel AG & Co. KGaA has decided to update its guidance for fiscal 2022.

We now expect organic sales growth at Group level of +7.0 to +8.0 percent in fiscal 2022 (previously: +5.5 to +7.5 percent).

For the Adhesive Technologies business unit, we now anticipate organic sales growth in the range of?+11.0 to +12.0 percent (previously: +10.0 to +12.0 percent). For the Beauty Care business unit, we now expect organic sales development of?-1.0 to 0.0 percent (previously: -3.0 to -1.0 percent), with performance mainly being impacted by the implementation of the already announced portfolio measures. For the Laundry & Home Care business unit, we now expect organic sales growth in the range of +5.5?to +6.5 percent (previously: +4.0 to +6.0 percent).

We now expect the Henkel Group to generate adjusted return on sales (EBIT margin) in the range of?10.0 to 11.0 percent (previously: 9.0 to 11.0 percent). We now anticipate adjusted return on sales for the Adhesive Technologies business unit in the range of?13.5 to 14.5 percent (previously: 13.0 to 15.0 percent), for Beauty Care in the range of?7.5 to 8.5 percent (previously: 5.0 to 7.0 percent), and for Laundry & Home Care in the range of?8.0 to 9.0 percent (previously: 7.0 to 9.0 percent)

For adjusted earnings per preferred share (EPS) at constant exchange rates, we now expect a decline in the range of -25 to -15 percent (previously: -35 to -15 percent).

In addition, we have the following expectations for 2022:

Restructuring expenses in the range of 450 to 500 million euros (unchanged) Cash outflows for investments in property, plant and equipment and intangible assets of around 650 million euros (previously: around 700 million euros)

The guidance continues to be based on the assumptions that there will be no new widespread pandemic-related business and production closures in industry and retail and that the effects of the war in Ukraine will not worsen significantly. In addition, our guidance is based on the assumption that there will be no production shutdowns in industry due to a gas shortage in Europe.

About Henkel

Henkel operates globally with a well-balanced and diversified portfolio. The company holds leading positions with its three business units in both industrial and consumer businesses thanks to strong brands, innovations, and technologies. Henkel Adhesive Technologies is the global leader in the adhesives market. In its Laundry & Home Care and Beauty Care businesses, Henkel holds leading positions in many markets and categories around the world. Founded in 1876, Henkel looks back on more than 140 years of success. In fiscal 2021, Henkel reported sales of more than 20 billion euros and adjusted operating profit of around 2.7 billion euros. Henkel employs more than 52,000 people globally ? a passionate and highly diverse team, united by a strong company culture, a common purpose to create sustainable value, and shared values. As a recognized leader in sustainability, Henkel holds top positions in many international indices and rankings. Henkel?s preferred shares are listed in the German stock index DAX. For more information, please visit www.henkel.com.

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This document contains statements referring to future business development, financial performance and other events or developments of future relevance for Henkel that may constitute forward-looking statements. Statements with respect to the future are characterized by the use of words such as expect, intend, plan, anticipate, believe, estimate, and similar terms. This information contains forward-looking statements which are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel?s conrol and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements.

This document includes supplemental financial indicators that are not clearly defined in the applicable financial reporting framework and that are or may be alternative performance indicators. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Henkel?s net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.

This document has been issued for information purposes only and is not intended to constitute an investment advice or an offer to sell, or a solicitation of an offer to buy, any securities.

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Financial calendar

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Publication of Report for Fiscal 2022: Tuesday, March 7, 2023

Annual General Meeting Henkel AG & Co. KGaA 2023: Monday, April 24, 2023

Publication of Statement for Q1 2023: Thursday, May 4, 2023

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Contact

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Investors & Analysts

Leslie Iltgen Phone: +49 (0) 211 797-1631? Email: leslie.iltgen@henkel.com?

Jennifer Ott? Phone: +49 (0) 211 797-2756? Email: jennifer.ott@henkel.com?

Dr. Dennis Starke Phone: +49 (0) 211 797-5601 Email: dennis.starke@henkel.com?

Press & Media Lars Witteck Phone: +49 (0) 211 797-2606 Email: lars.witteck@henkel.comWulf Kl?ppelholz Phone: +49 (0) 211 797-1875 Email: wulf.klueppelholz@henkel.comHanna Philipps Phone: +49 (0) 211 797-3626 Email: hanna.philipps@henkel.com ?

Further information containing download material, and the link to listen in on the conference call, are available at:

www.henkel.com/press

www.henkel.com/ir

08.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.Archive at www.eqs-news.com

Language: English Company: Henkel AG & Co. KGaA Henkel Str. 67 40191 D?sseldorf

Germany Phone: +49 (0)211 797-0 Fax: +49 (0)211 798-4008 E-mail: press@henkel.com Internet: www.henkel.de ISIN: DE0006048432, DE0006048408 WKN: 604843, 604840 Indices: DAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange EQS News ID: 1481233 ? End of News EQS News Service

1481233??08.11.2022?CET/CEST

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