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    Top Companies Report

    Henkel

    ...

    Henkel
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    08.02.21
    Germany
    www.henkel.com

    Sales: $11.9 billion

    Corporate sales: $21.9 billion

    Key personnel
    Carsten Knobel, chief executive officer; Wolfgang König, executive vice president, beauty care; Bruno Piacenza, executive vice president, laundry & home care; Sylvie Nicol, executive vice president, human resources and infrastructure services; Marco Swoboda, executive vice president finance (CFO) purchasing and global business solutions, Henkel Düsseldorf

    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
    Personal Care: Schwarzkopf ChromaID, Fibre Clinix, Color Boost and In-Between Colors, Taft (relaunch), Igora Royal (relaunch), Natural & Easy (relaunch); Household—Love Nature household cleaners, Somat All-in-1 Pro Nature automatic dishwashing tabs, Biff Pro Nature toilet cleaner, Persil 4-in-1 discs (variants), Pril 5+, 3+1 Power-Caps, Pril Antibacterial


    The latest launch at Schwarzkopf is Color Boost. It is now available in Brown, Cool Blonde, Dark Cool, Golden, Icy and Red hues. 
    Comments: Corporate sales fell 4.3% in 2020. Like so many other FMCG companies, some business units thrived during the pandemic, while others wilted. At Henkel, beauty care sales fell, and laundry and home care sales rose. The non-related adhesives business also declined.

    More specifically, beauty care sales fell 3.2% as gains in North America were more than offset by declines in Europe, Asia and Latin America. By product category, body care recorded very strong growth due to higher sales of hygiene and soap products. Consumer hair colorant sales posted gains, but demand declined for hair care, styling and skin care. The global hair salon market suffered significantly negative impacts in all regions, particularly in the first half of the year, as governments grappled with the pandemic. Yet, Henkel insisted that its professional hair care business held up better than the competition, decreasing low-double digits. Last year, 85% of beauty care sales came from Henkel’s top 10 brands. About 55% of beauty care sales came from products introduced in the previous three years.

    Laundry and home care sales rose less than 1% in 2020. Dishwashing products and hard surface cleaners were the biggest contributors to growth. Top brands like Pril, Bref and Somat all posted double-digit increases. By region, Asia-Pacific posted double-digit increases, while North America and Western Europe also recorded sales gains. Last year, about 65% of laundry and home care sales came from Henkel’s top 10 brands. Approximately, 45% of laundry and home care sales came from products launched in the previous three years.

    Sustainability is front and center for all FMCG companies and their suppliers. In 2020, Henkel launched Love Nature, a line of laundry detergents, bathroom and general cleaners, and dishwashing products. The new product range offers high-performance plant-based products in fully recyclable packaging that can be refilled at designated stations to help reduce plastic waste. Love Nature was recognized with the EU Ecolabel seal of approval. Similarly, new Somat All-in-1 Pro Nature automatic dishwashing tabs and Biff Pro Nature toilet cleaner were added to the Pro Nature range of household cleaners. Somat All-in-1 Pro Nature contains 94% natural raw materials and is fragrance-free. Biff Pro Nature WC cleaner consists of more than 90% natural raw materials. The bottle is made of 50% recycled polyethylene, and the printed film cover can be removed to make the packaging fully recyclable. Like the existing product range, the new products have also been awarded the Blue Angel certification.

    Henkel got back on track in Q1 2021. Corporate sales rose less than 1%, due to a 7.5% drag from forex. Volume expanded 6% and pricing was up 1.7% year-over-year.

    “Beauty care delivered a good organic sales growth of 2.3% although having been affected by pandemic-related market effects. Growth was supported by both the consumer business, and in particular, the professional business. Despite ongoing salon closures in many countries, especially in the beginning of the quarter, this business area achieved very strong growth,” said CEO Carsten Knobel. “Although developments in key mature markets started to slow, laundry & home care recorded very strong organic sales growth of 4.1% in the first quarter. This was mainly driven by double-digit growth both in our home care business and in the emerging markets.”

    In a key personnel move, on June 1, Wolfgang König joined Henkel’s management board as executive vice president for the beauty care business. König has more than 25 years’ experience in the FMCG industry, including stints at Beiersdorf and Colgate. 
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