Sales: $9.9 billion
Kasper Rorsted, chief executive officer; Dr. Simone Bagel-Trah, chairwoman of the shareholders’ committee and supervisory board; Dr. Lothar Steinebach, executive vice president finance and chief financial officer; Hans Van Bylen, executive vice president, cosmetics/toiletries; Dr. Friedrich Stara, executive vice president, laundry and home care; Professor Dr. Thomas Muller-Kirschbaum, laundry and home care for R&D; Tina Müller, corporate senior vice president, worldwide hair, face and oral products; Georg Baratta-Dragono, corporate senior vice president, laundry care; Norbert Koll, corporate senior vice president, Schwarzkopf Professional; Brad Casper, president and chief executive officer, Henkel Consumer Goods Inc.; Tracy VanBibber, senior vice president, sales, Henkel Consumer Goods Inc.
Laundry and home care brands include Persil, Mir, Perwoll, Purex, Sil, Spee, Vernel, Pril, Somat, Bref, Purex, Zout, Soft Scrub, Renuzit, Combat pest products; Beauty and personal care brands include Schwarzkopf, Schwarzkopf Professional, Indola Clynol, Poly Palette, Country Colors, Natural & Easy, Antica Erboresiteria, Schauma, Seborin, Citré Shine, Thicker Fuller Hair, got2b, Poly Swing, Taft, Dep, L.A. Looks, Zero Frizz and Smooth ’n Shine hair care; Bac, Barnängen, Coast, Dial, Tone, Dry Idea, Fa, LaToja, Mont Saint Michel, Neutro Med, Right Guard, Soft & Dri and Tone body care; Aok and Diadermine skin care; Antica Erboristeria, Denivot, Licor del Polo, Theramed and Vademecum oral care; Scorpio fragrances
Purex Complete 3-in-1 laundry sheets, Soft Scrub Total Kitchen and Soft Scrub Total Bath, Dial Antioxidant body wash and bar soap, Dial Nutri-Skin body wash and bar soap, Dial Eco-Smart Refill, Dial for Men hair and body wash, Persil ActicPower and Persil Hygiene Rinse, Somat 9 dishwashing detergent, Schwarzkopf Essential Color and Syoss professional hair products
Corporate sales fell nearly 4% last year, but for Happi readers, the decline is deceiving as sales within the adhesives unit fell 7.1% during that period. Meanwhile, sales of laundry and home care products dropped just 1%, and cosmetics and toiletries sales fell a scant 0.2%.
Taking a closer look at the $5.7 billion laundry and home care unit, detergents accounted for 53% of sales, followed by cleaning products at 35%; and insecticides and air fresheners at 6% each. Sales in Western Europe were up modestly. Sales growth in Eastern Europe slowed from the double-digit gains posted in 2008, but Henkel still managed to grow market share.
In the emerging markets of Africa/Middle East, Latin America and Asia, several key markets, such as Russia and Egypt, posted double-digit sales gains. However, sales in Asia were hurt by the 2008 decision to exit China. Finally, results in North America were mixed, as a small gain in detergent sales was offset by a decline in household cleaners.
Among the novel new product launches in laundry and home care, Henkel rolled out Persil ActiPower, a coldwater laundry detergent, Somat 9 dishwashing liquid and Purex Complete 3-in-1 laundry sheets.
In the cosmetics and toiletries sector, sales dipped to just under $4.2 billion. Skin care accounted for 35% of sales, followed by hair cosmetics and salon products, 32%; body care, 22%; and oral care, 11%. The primary reason for the decline in sales was the lackluster hair care business, as cash-strapped consumers stayed away from hair salons. Despite the difficult salon environment, Henkel managed to expand share and retain its No. 3 position in the global hair salon market.
In cosmetics and toiletries, Schwarzkopf Essential Color is Henkel’s first 100% permanent hair colorant without ammonia. Syoss is billed as an affordable, professional hair care line, and new Dial Anti-Oxidant body wash contains cranberries and antioxidant pearls.
The good news is that Henkel turned in a strong first quarter performance in 2010, as sales rose 7.8% to $4.8 billion.
Henkel raised consumer awareness about the plight of the homeless with its Shower Power Mobile Shower.
“Once again our strong brands made a further major contribution to Henkel’s gratifying Q1 results. However, this very good performance is also due to our efforts in adapting our structures and reducing our costs, coupled with the good progress we have made in the implementation of our strategic priorities,” said Kasper Rorsted, chairman, Henkel management board. “Now we are looking forward to a noticeable improvement in our results of more than 15% for the full fiscal year versus 2009.”
Laundry and home care sales rose 3.5% to $1.4 billion, as emerging markets continued to grow and conditions improved in Western Europe and North America. Sales were helped along by the introduction of several novel products. For example, Persil Hygiene Rinser was launched in a number of countries in Western Europe while Eastern European markets saw the rollout of Persil Gold Plus Active, an innovative product that reduces the amount of energy required per laundry wash. The home care business made a disproportionate contribution to the rise in sales. The geographic breakdown shows that Henkel registered growth momentum in virtually all its regions, particularly in Africa/Middle East, Asia and North America. In North America, the focus was on the launch of products under the Soft Scrub brand for gentle surface cleaning in the bathroom and kitchen. Suitable for removing a wide range of soil types, they reduce the amount of effort required and accelerate the cleaning process on all surfaces, according to the company.
While laundry and home care sales rose in the first quarter, the cosmetics and toiletries business did even better, posting a 5.5% gain that outstripped both the high levels of growth achieved in recent quarters and the overall rate of market expansion, according to Henkel. The growth regions of Asia-Pacific, Africa/Middle East, Latin America and Eastern Europe turned in excellent results, and a significant contribution to growth also came from the mature markets of Western Europe.
Best of all, hair care returned to growth, following the relaunch of the Schauma Volume series with pushup effect, accompanied by the introduction of the new Gliss Shea Cashmere line. In the colorants business, priority was given to the launch of the Syoss Color line and driving forward the further successful expansion of Essential Colors.
Looking toward the end of the year, Henkel expects the world economy to grow by approximately 3% but without any anticipation of a sustained upturn.