Top Companies Report

4. Henkel

August 6, 2012


Sales: $10.7 billion

Key Personnel: Kasper Rorsted, chief executive officer; Carsten Knobel, executive vice president, finance and purchasing; Kathrin Menges, executive vice president, human resources and infrastructure services; Hans Van Bylen, executive vice president, cosmetics/toiletries; Bruno Piacenza, executive vice president, laundry and home care.

Major Products: Household—Mir, Persil, Perwoll, Purex, Sil, Spee and Vernel laundry detergents, Pril and Pur dish detergents, Bref and Soft Scrub hard surface cleaners and Somat automatic dish detergent. Personal Care—Schwarzkopf & Henkel, Schwarzkopf, Indola, Clynol, Seah Hairspa, BC Bonacure, Clynol hair care products; Dial, Fa and Right Guard, Tone, La Toja, Neutro mend, Coast, Dry Idea and Mont St. Michel body care products; Aok and Diadermine skin care products; Licor del Polo, Antica Erboristeria, Vademecum, Theramed and Denivit oral care products.

New Products: Household Care—Perwoll Re-new Effect, Persil Black, Somat 10, Bref Power Activ; Personal Care—Gliss Kur Ultimate Repair, Fa NutriSkin, Bonacure Oil Miracle, Syoss Mixing Colors, Palette Mousse Color, Taft Heidi’s Heat Styles and Taft Volume Powder, Got2b Powder’ful, Got2b Rockin’It, Dr. Caspari Hormoderm.

Comments: Corporate sales rose more than 3% last year to $21.7 billion and net income was up more than 12%.

Henkel’s Dial franchise holds a Hello Kitty license.
By category, laundry and home care sales fell 0.3% to nearly $6 billion. Henkel noted that the global market was marred by severe competition and rising raw material costs. Despite these difficulties, Henkel managed to outperform its rivals and boost market share on the strength of favorable developments in Europe and better than expected results in North America. Eastern Europe returned to growth due to big gains in Russia and Turkey and Latin America posted gains as well. Although the Africa/Middle East region was hurt by political unrest in the first half of 2011, the situation stabilized in the second half. Henkel expanded its share in South Korea, its only market in the Asia/Pacific region.

Sales of cosmetics and toiletries rose 4% to $4.7 billion. All regions provided a lift, but the biggest came from the emerging markets of Africa/Middle East, Latin America and Asia (excluding Japan), where Henkel posted double-digit gains. Within the branded consumer segment, hair care led the way, due to new products launches from Schwarzkopf and Syoss. Hair colorant sales were up due to the launch of Syoss Mixing Colors, a product with two harmonized shades for self-mixing, and Palette Mousse Color, the first foam colorant in Europe that mixes in a shaker. Body care sales got a lift from entry into new categories and product launches under the Fa, Dial and Right Guard brands. Within skin care, Henkel introduced Dr. Caspari Hormoderm, the first product from Diadermine that counters the effects of menopause on the skin-aging process.

Henkel owns the Diadermine skin care range.

Last year, Henkel spent $571 million on R&D. Of that total, 24% went to laundry and home care and 15% went to cosmetics and toiletries. In 2011, Henkel researchers developed a modified protease through the optimization of enzyme/stain interaction as a means of improving the washing performance of liquid detergents, particularly at low wash temperatures starting at just 20°C. Also last year, researchers developed highly concentrated liquid laundry detergents in soluble, pre-dosed capsules which guarantee, with just half the usual dose, maximum performance per wash, while at the same time conserving resources, especially packaging. Finally, the company developed a new generation of glass cleaners using surfactants manufactured entirely from renewable raw materials.

On the subject of cosmetics and toiletries’ R&D, Henkel created treatment oils in a hair colorant that improve care properties, and innovative hair care products for rebuilding the hair structure and reducing split ends. Also new is a next generation body wash that not only cleans, but also protects against body odor and imparts a freshness feel that lasts up to 18 hours. Lastly, new extreme hold hair gels are based on innovative polymer technology.

For the first quarter of 2012, sales rose 4.8% to $5.2 billion, led by an 8.7% increase in emerging market sales. Laundry and home care sales rose 4.5% to $1.4 billion due to gains in emerging markets such as Africa/Middle East and Latin America. Meanwhile, emerging market strength propelled cosmetics and toiletries’ sales 4% to $1.1 billion.

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