Henkel Grows Organically in 2025, Boosts Profitability & Dividend

German multinational Henkel AG & Co. KGaA reported a resilient performance for fiscal year 2025, navigating a challenging global economic and geopolitical landscape. Under the leadership of CEO Carsten Knobel, the company achieved group sales of 20.5 billion euros with positive organic growth of 0.9 percent. Despite negative foreign exchange impacts, Henkel improved its adjusted EBIT margin to 14.8 percent and saw adjusted earnings per preferred share rise by 4.7 percent at constant exchange rates. The company's two core business units, Adhesive Technologies and Consumer Brands, both contributed to this stability. Adhesive Technologies, the global leader in adhesives and sealants, posted 1.5 percent organic sales growth, while Consumer Brands, housing iconic names like Persil and Schwarzkopf, achieved 0.3 percent organic growth. A key milestone was the successful completion, ahead of schedule, of the merger of its consumer goods businesses into the unified Consumer Brands unit, which yielded significant cost savings and operational improvements.

Henkel's strategic "Purposeful Growth Agenda" advanced significantly through active portfolio management and targeted acquisitions. The company divested non-core assets, including its Retailer Brands business in North America, and made strategic purchases to bolster future potential. Notable acquisitions include ATP Adhesive Systems AG, Stahl Group, and the hair care brand "Not Your Mother's," representing a combined additional sales volume of around 1.2 billion euros. Innovation remained a cornerstone, with new product launches like Schwarzkopf's Creme Supreme hair coloration and investments in global "Inspiration Centers" for research and development. The company also progressed in sustainability, aiming for net-zero emissions by 2045, and embraced digitalization, including AI applications in marketing and product development. Reflecting confidence in its financial health, Henkel's management will propose a 1.5 percent dividend increase to shareholders.

Looking ahead to fiscal 2026, Henkel provided an optimistic yet measured outlook, expecting further organic sales growth between 1.0 and 3.0 percent and an adjusted EBIT margin in the range of 14.5 to 16.0 percent. The company anticipates earnings per share to increase in the low to high single-digit percentage range. This forward guidance comes as Henkel prepares to celebrate its 150th anniversary in 2026, emphasizing a commitment to its pioneering legacy and future-ready strategies. The news was disseminated via a press release on NEWMEDIAWIRE, and further details can be found by viewing the original release on www.newmediawire.com. The report underscores Henkel's ability to deliver growth and improve profitability through strategic focus, innovation, and operational efficiency even in uncertain times.