Happi Staff11.10.20
Henkel says it delivered strong organic sales growth of 3.9% in the third quarter of fiscal 2020 – despite the continued challenging economic environment as a result of the COVID-19 pandemic. Group sales totaled around €5 billion, or $5.9 billion, corresponding to a nominal change of -1.5%.
“The impacts of the global coronavirus crisis continue to determine the market environ-ment. Nevertheless, Henkel achieved a good business performance in the third quarter, with all three business units contributing. This is evidence of our robust, diversified port-folio comprised of successful brands and innovative technologies for our customers in the industrial and consumer goods businesses. Furthermore, our additional investments in marketing, innovation and digitalization are paying off. Plus, we significantly expanded our digital sales in the third quarter, increasing their total sales share to more than 15%,” said Henkel CEO Carsten Knobel.
“The good performance in the third quarter is also partly due to catch-up effects from the second quarter, where the negative impacts of the COVID-19 pandemic were particularly severe. But above all, it is the result of our strong global team, which in this unprecedented and challenging time for all of us, is showing enormous commitment as it continues to contribute to the long-term success of Henkel.”
In the Beauty Care business unit, the hair salon business also showed a recovery compared to the second quarter. Its organic sales development year on year was, however, slightly negative, said Henkel. Conversely, the retail business achieved very strong organic sales growth compared to the third quarter of 2019. With demand for laundry detergents and household cleaners remaining strong and thanks to catch-up effects from the second quarter, the Laundry & Home Care business unit was able to record significant organic sales growth, and thus continued its successful development, said Henkel.
In the Beauty Care business unit, sales increased nominally by 3.0% to €999 million ($1.18 billion) in the third quarter of 2020. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales grew by 4.3%. This performance was driven by both volume and price. Foreign exchange effects reduced sales by -3.3%. Acquisitions/divestments contributed 2.0% to sales growth.
In the first nine months of 2020, sales of the Beauty Care business unit were nominally down -3.9% year on year. Organically, sales decreased by -4.2% due to volume effects. Following negative developments in the Hair Salon business as a result of the pandemic in the first and, especially, second quarter, the business area saw a significant recovery in the third quarter. After a weaker first six months, sales development in the Branded Consumer Goods business was very strong in the third quarter.
The Branded Consumer Goods business achieved very strong organic sales growth in the third quarter. As was the case in the second quarter, the Body Care category recorded double-digit percentage growth. The Dial brand in particular was able to continue its very strong performance from the second quarter. After experiencing negative development in the first half of the year, the Hair Cosmetics category achieved very strong sales growth, driven by organic sales growth in Hair Colorants in the double-digit percentage range. Hair Care also improved significantly and posted a strong sales performance. However, the Styling business performed below prior year due to the change in consumer behavior in the wake of the COVID-19 pandemic.
Although the Hair Salon business continued to be impacted by the COVID-19 pandemic in the third quarter, it recorded a significant recovery compared to the first six months. Year on year, growth was positive in the Western Europe region and very strong in the Latin America region. Despite negative organic sales development, the other regions still demonstrated a strong improvement in performance compared to the first half of the year.
The very strong performance in Branded Consumer Goods and the recovery in the Hair Salon business were also reflected in the regions. The emerging markets achieved strong organic sales growth in the third quarter. This performance was substantially attributable to significant increases in sales in the Eastern Europe and Latin America regions. Asia (excluding Japan) registered positive sales growth. By contrast, the Africa/Middle East region recorded negative sales development.
Organic sales development was very strong in the mature markets. Sales growth in the North America region was in the double-digit percentage range due, particularly, to the Body Care category, which also posted double-digit growth. Sales performance was positive in Western Europe, driven by both the Branded Consumer Goods and Hair Salon businesses. Conversely, performance in the mature markets of the Asia-Pacific region was negative, particularly in the Hair Salon business.
The Laundry & Home Care business unit generated sales of €1.6 billion ($2.0 billion) in the third quarter of 2020, corresponding to a nominal increase of 0.7% over the prior-year quarter. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales in the business unit increased significantly, by 7.7%. Growth was driven primarily by a significant increase in volume, compared to a slightly negative price trend. Acquisitions/divestments had no substantial impact on sales. Foreign exchange effects, by contrast, reduced sales by -7.0 percent.
In the first nine months of 2020, sales of the Laundry & Home Care business unit increased nominally by 2.7%. Organically, the businesses of this unit achieved very strong sales growth of 5.8%, driven by volume. Following a very strong increase in sales in the first and second quarter of the year, the business unit recorded significant growth in the third quarter.
In the Home Care business area – as in the preceding two quarters – Henkel achieved organic sales growth in the double-digit percentage range in the third quarter. The strong development of this business area was substantially due to the performance of our brand families Pril, Bref and Somat, all of which posted double-digit increases in the categories dishwashing products, hard surface cleaners, and WC cleaners. This trend was supported both by increased demand for household cleaners as a result of the pandemic and by our successful product innovations, said the company.
The Laundry Care business area recorded strong growth in the third quarter, to which heavy-duty laundry detergents contributed with a very strong performance. Our core brand Persil achieved significant growth, not least as a result of our innovation initiatives. The detergent caps product group generated double-digit growth, thus extending its successful performance from the first six months. Henkel’s North American brand all also achieved sales growth in the double-digit percentage range.
In the emerging markets Henkel achieved double-digit organic sales growth in the third quarter, with the Africa/Middle East, Asia (excluding Japan) and Latin America regions particularly prominent. The Eastern Europe region recorded significant organic sales growth.
Performance in the mature markets was strong overall. In the North America region, especially, Laundry & Home Care achieved very strong organic sales growth, said Henkel. This development is partially attributable to catch-up effects from the second quarter. Sales development in the Western Europe region was good. Growth in the mature markets of the Asia-Pacific region was in the double-digit percentage range.
“The impacts of the global coronavirus crisis continue to determine the market environ-ment. Nevertheless, Henkel achieved a good business performance in the third quarter, with all three business units contributing. This is evidence of our robust, diversified port-folio comprised of successful brands and innovative technologies for our customers in the industrial and consumer goods businesses. Furthermore, our additional investments in marketing, innovation and digitalization are paying off. Plus, we significantly expanded our digital sales in the third quarter, increasing their total sales share to more than 15%,” said Henkel CEO Carsten Knobel.
“The good performance in the third quarter is also partly due to catch-up effects from the second quarter, where the negative impacts of the COVID-19 pandemic were particularly severe. But above all, it is the result of our strong global team, which in this unprecedented and challenging time for all of us, is showing enormous commitment as it continues to contribute to the long-term success of Henkel.”
In the Beauty Care business unit, the hair salon business also showed a recovery compared to the second quarter. Its organic sales development year on year was, however, slightly negative, said Henkel. Conversely, the retail business achieved very strong organic sales growth compared to the third quarter of 2019. With demand for laundry detergents and household cleaners remaining strong and thanks to catch-up effects from the second quarter, the Laundry & Home Care business unit was able to record significant organic sales growth, and thus continued its successful development, said Henkel.
In the Beauty Care business unit, sales increased nominally by 3.0% to €999 million ($1.18 billion) in the third quarter of 2020. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales grew by 4.3%. This performance was driven by both volume and price. Foreign exchange effects reduced sales by -3.3%. Acquisitions/divestments contributed 2.0% to sales growth.
In the first nine months of 2020, sales of the Beauty Care business unit were nominally down -3.9% year on year. Organically, sales decreased by -4.2% due to volume effects. Following negative developments in the Hair Salon business as a result of the pandemic in the first and, especially, second quarter, the business area saw a significant recovery in the third quarter. After a weaker first six months, sales development in the Branded Consumer Goods business was very strong in the third quarter.
The Branded Consumer Goods business achieved very strong organic sales growth in the third quarter. As was the case in the second quarter, the Body Care category recorded double-digit percentage growth. The Dial brand in particular was able to continue its very strong performance from the second quarter. After experiencing negative development in the first half of the year, the Hair Cosmetics category achieved very strong sales growth, driven by organic sales growth in Hair Colorants in the double-digit percentage range. Hair Care also improved significantly and posted a strong sales performance. However, the Styling business performed below prior year due to the change in consumer behavior in the wake of the COVID-19 pandemic.
Although the Hair Salon business continued to be impacted by the COVID-19 pandemic in the third quarter, it recorded a significant recovery compared to the first six months. Year on year, growth was positive in the Western Europe region and very strong in the Latin America region. Despite negative organic sales development, the other regions still demonstrated a strong improvement in performance compared to the first half of the year.
The very strong performance in Branded Consumer Goods and the recovery in the Hair Salon business were also reflected in the regions. The emerging markets achieved strong organic sales growth in the third quarter. This performance was substantially attributable to significant increases in sales in the Eastern Europe and Latin America regions. Asia (excluding Japan) registered positive sales growth. By contrast, the Africa/Middle East region recorded negative sales development.
Organic sales development was very strong in the mature markets. Sales growth in the North America region was in the double-digit percentage range due, particularly, to the Body Care category, which also posted double-digit growth. Sales performance was positive in Western Europe, driven by both the Branded Consumer Goods and Hair Salon businesses. Conversely, performance in the mature markets of the Asia-Pacific region was negative, particularly in the Hair Salon business.
The Laundry & Home Care business unit generated sales of €1.6 billion ($2.0 billion) in the third quarter of 2020, corresponding to a nominal increase of 0.7% over the prior-year quarter. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales in the business unit increased significantly, by 7.7%. Growth was driven primarily by a significant increase in volume, compared to a slightly negative price trend. Acquisitions/divestments had no substantial impact on sales. Foreign exchange effects, by contrast, reduced sales by -7.0 percent.
In the first nine months of 2020, sales of the Laundry & Home Care business unit increased nominally by 2.7%. Organically, the businesses of this unit achieved very strong sales growth of 5.8%, driven by volume. Following a very strong increase in sales in the first and second quarter of the year, the business unit recorded significant growth in the third quarter.
In the Home Care business area – as in the preceding two quarters – Henkel achieved organic sales growth in the double-digit percentage range in the third quarter. The strong development of this business area was substantially due to the performance of our brand families Pril, Bref and Somat, all of which posted double-digit increases in the categories dishwashing products, hard surface cleaners, and WC cleaners. This trend was supported both by increased demand for household cleaners as a result of the pandemic and by our successful product innovations, said the company.
The Laundry Care business area recorded strong growth in the third quarter, to which heavy-duty laundry detergents contributed with a very strong performance. Our core brand Persil achieved significant growth, not least as a result of our innovation initiatives. The detergent caps product group generated double-digit growth, thus extending its successful performance from the first six months. Henkel’s North American brand all also achieved sales growth in the double-digit percentage range.
In the emerging markets Henkel achieved double-digit organic sales growth in the third quarter, with the Africa/Middle East, Asia (excluding Japan) and Latin America regions particularly prominent. The Eastern Europe region recorded significant organic sales growth.
Performance in the mature markets was strong overall. In the North America region, especially, Laundry & Home Care achieved very strong organic sales growth, said Henkel. This development is partially attributable to catch-up effects from the second quarter. Sales development in the Western Europe region was good. Growth in the mature markets of the Asia-Pacific region was in the double-digit percentage range.