Sales: $12.2 billion for beauty and home care sales. Corporate sales: $23.3 billion.
Key Personnel: Hans Van Bylen, chief executive officer; Carsten Knobel, executive vice president, finance, purchasing and integrated business solutions; Sylvie Nicol, executive vice president, human resources and infrastructure services; Jens-Martin Schwärzler, executive vice president, beauty care; 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, 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: Beauty—Barnängen, got2b color, Dial antibacterial hand soap with Mint Shea scent.
Comments: Forex pressures sliced 5.4% off the top line and as a result, Henkel’s corporate sales dipped 0.6% last year. Overall organic sales growth was 2.4%, which was in line with the full year target of 2-4%.
Beauty sales rose 2.1% to $4.7 billion, but forex reduced sales by 4.8% and acquisitions/divestments accounted for 7.6% of growth. The professional hair care business topped €1 billion for the first time, thanks to strong organic growth in both mature and emerging markets. Hair color sales were up as Henkel reported market share gains across all regions, helped along by new brands such as got2b Color, as well as existing brands such as Syoss Color. Salon sales were strong, especially within the Schwarzkopf Professional, which received a lift from new products within the Igora and BlondMe lines.
On a regional level, Eastern European sales rose on the strength of the hair and body categories. Latin America also posted significant increases. On the downside, sales in North America declined due to shipping difficulties; while sales were off in Western Europe and major markets of Asia/Pacific.
Laundry and home care sales fell 3.5% to $7.5 billion, as forex effects reduced sales growth by 6.2%. Henkel’s No. 1 laundry brand, Persil, delivered significant growth and specialty detergent formulas also contributed to market share gains across all regions. Home care product sales rose on demand for hand dishwash and toilet care products.
During 2018, Henkel made numerous investments, including the opening of a Somat production site in Serbia, a learning center for hair stylists in the US, and a beauty care laboratory in Dubai. Last year, Henkel spent $556 million on R&D, with 42% of the total devoted to home and beauty care projects.
For Q1 2019, corporate sales rose 2.8% to $5.6 billion, helped along by gains in home and laundry care, which were partially offset by weakness in beauty care. Organic growth was less than 1%.
Beauty care’s organic sales fell 2.2% to $1.1 billion and were below the company’s expectations. While there were positive effects from newly-launched brands and innovations and continued development of the hair professional business across mature and emerging markets, weakness in Western Europe and China hurt retail business results. Still, got2b achieved double digit growth that was aided by positive input from bloggers and other influencers. North American sales were strong helped, in part, by strong growth driven by core Dial products. In contrast, home and laundry care organic sales jumped 4.7% to $1.9 billion; emerging markets led the way, while North America returned to growth after the region was hampered by delivery issues a year ago.
In June, Henkel reported it will invest $19 million to expand its West Hazleton, PA facility. This investment will enable the company to open a new production line for both Dial body wash and Dial liquid hand soap and will help enable future growth for the business. As part of its investment in the facility, Henkel has added 14 new jobs to support the Dial brand, raising the total employee count at the plant to 180.
“This is an exciting time for the West Hazleton plant,” said Tricia Fair, plant manager. “The West Hazleton facility has a long history of manufacturing Dial products and we are very pleased that Henkel’s investment will drive growth and bring new jobs to our community. The line expansion is an investment in the future of both the company and the brand’s mission. Dial has been a trusted brand to families for over seventy years, and we are committed to furthering the brand’s efforts to help deliver clean, healthy skin to consumers everywhere.”
“At Henkel, we’re committed to ensuring that each of our brands has the resources necessary to drive continuous and future growth, and Henkel has invested nearly $5 billion in the US market over the past four years to support that growth,” said Heather Wallace, senior vice president and general manager, Beauty Care North America. “Enhanced production capabilities such as this investment at West Hazleton helps position our beauty care business for success and provide consumers and customers with the innovative, high-quality products they have come to love and expect from Henkel.”
The line officially began production of the Dial products on June 17 and was officially commemorated on June 20 with a ribbon-cutting ceremony led by Wallace, Fair and the North American Beauty leadership team.