07.30.07
4. Henkel
Germany
www.henkel.com
Sales: $8.6 billion
Sales:
$8.6 billion for household and personal care products. Corporate sales: $16 billion. Net income: $1 billion.Key Personnel:
Prof. Dr. Ulrich Lehner, chairman of the management board; Dr. Friedrich Stara, executive vice president, laundry and home care; Hans Van Bylen, executive vice president, cosmetics and toiletries; Kasper Rorsted, executive vice president human resources, purchasing, information technologies, infrastructure services.
Major Products:
Laundry & home care brands include Persil, Purex, Dixan, Vernel, Mir Couleurs, Pril, Bref, Spee Weiber Riese and Somat; Cosmetics/toiletries brands include Schwarzkopf, Fa, Right Guard, Dial, Igora, Palette, Gliss Kur, Schauma, Taft, Theramed and Diadermine.
New Products:
Laundry & home care—Pril Funny Man dish detergent, Persil with a touch of Vernel, Somat 7; Cosmetics/toiletries—Glass Total Repair 19, Taft Titane, Dial for Men, Igora Royal, Diadermine Global Action 9, Fa Yogurt and Fa Asia Spa, Right Guard (acquisition).
Comments:
Laundry & home care sales rose less than 1% to $5.1 billion, but organic growth was up 4.6%. During the year, the company sold the North American foods business acquired with Dial. The division expanded its market position in the Europe/Africa/Middle East region and growth of specialty detergents was strong. In Western Europe (including Germany), sales picked up in the second half after consumers had time to digest price increases. The successful Aromasoft and Aroma- therapy campaigns for Vernel and Silan fabric softeners provided a lift. Growth was strongest in Eastern Europe, particularly in Russia, Poland and the Ukraine. Home care sales in Western Europe rose on the strength of dishwashing detergent sales.Cosmetics/toiletries’ sales jumped 8.9% to nearly $3.6 billion. Henkel successfully expanded its position in body care with the launch of Fa Yogurt and Fa Asia Spa. In skin care, the company introduced a new line of anti-aging products, Diadermine Global Action 9, which combat all signs of aging.
In hair care, colorant sales were up on the strength of Palette, Natural & Easy and Brilliance brands. Under the Brilliance aegis, the company introduced Luminance, a subline designed to provide dark hair with an intensive shine and in vogue colors. Within the salon segment, Henkel relaunched Igora Royal colorant and OSiS styling products.
Like so many other consumer product companies, Henkel is determined to increase the pace of innovation. Henkel is so committed to the idea that, in 2006, it initiated a three-year innovation campaign to sharpen the awareness of all employees about the importance of innovation. By the end of January 2007, the new number of new ideas collected through this innovation process reached 67,000! Moreover, 20% moved to the next stage for further evaluation.
Along the same lines, research and development expenditures reached $427 million last year, up about 5% from 2005. The bulk of R&D personnel are located in Germany and the U.S., but Henkel is expanding its Shanghai facility as a central research site for all of its business sectors.
Growth has continued into 2007. First quarter sales increased 6.2% and earnings were up 13.5%.
“Our start to the new fiscal year has been very successful. We are particularly encouraged by our strong organic sales growth and the significant contributions made by all our business sectors,” said Ulrich Lehner, management board chairman. “We have generated further dynamic expansion in our growth regions while our businesses in Western Europe including Germany also performed well. The launch of new and innovative products again contributed to this good performance.”
Sales of laundry and home care products rose 11.9%, driven by the extensive activities undertaken in celebration of Persil’s centennial. Cosmetics and toiletries’ sales rose 6.4%.