Sales: $11.8 billion for home and beauty care. Corporate sales: $21.9 billion.
Key Personnel: Hans Van Bylen, chief executive officer; Carsten Knobel, executive vice president, chief financial officer; Kathrin Menges, executive vice president, human resources and infrastructure services; Jens-Martin Schwärzler, executive vice president, beauty care; Bruno Piacenza, executive vice president, laundry 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—#mydentity haircolor, Dial Complete 2-In-1 Foaming Hand Wash.
Comments: Innovation, agility and digitalization will drive Henkel for the next several years, according to company executives. One goal is to double digital sales to more than four billion euros by 2020. The plan is working in the short-term; last year, corporate sales rose 7%, topping $20 billion for the first time.
Beauty care sales increased less than 1% to about $4.5 billion. Henkel blamed a global slowdown in beauty for part of the decline. Sales in North America fell, while results in Western Europe were weakened by promotional activity, severe price and trade pressure and declining average price.
Laundry and home care sales soared nearly 15% to about $7.3 billion, due in large part to The Sun Products Corporation acquisition.
As part of its strategic priority “accelerate digitalization,” Henkel further digitized its interactions with customers, consumers, business partners, and suppliers along the entire value chain. Digitally driven sales increased double-digit across all business units. Henkel invested in Industry 4.0, implemented smart factory concepts and further digitized its integrated global supply chain. To strengthen the digital Capabilities of employees, specific training and development programs were rolled out. The newly appointed chief digital officer established a dedicated organization, driving the digital transformation across all units. Henkel will be the new platform to bring together internal and external networks and collaboration events, digital engagement formats as well as new ways of working, said the company. To create a more agile organization, Henkel has fostered the entrepreneurial spirit of its employees, introduced more flexible business models to better adapt to dynamic markets. As part of the Fastest-Time-To-Market initiative, innovation lead times have been reduced and entries into new markets have been accelerated. All initiatives to fund growth are on track to realize the targeted benefits: By 2020, they are expected to generate annual efficiency gains of more than €500 million.
Last year, Henkel upgraded and expanded its beauty care production plant in Russia and built a laundry and home care production plant in Egypt.
In 2018, in the US, Henkel dedicated new research and development facilities in Connecticut. In Stamford, the 24,000-square foot facility employs about 40 people, and comprises a formulation lab, which develops Henkel Beauty Care products including Dial, Right Guard, Tone, Schwarzkopf and got2b as well as Research@Elm, a clinical testing lab.
“Our new location in Stamford allows for optimal access to key suppliers and customers, while giving our research and development team a state-of-the-art workspace to achieve their full potential in creating and testing top quality product formulations and packages,” said Martina Spinatsch, VP-R&D for Henkel’s beauty care division. “In addition, the proximity of our labs to our marketing teams encourages collaboration and enables us to ensure all of our beauty care brands benefit from our advanced technologies and scientific expertise.”
The expanded facility in Trumbull spans 27,000 square feet and includes formulation laboratories, a consumer product and fragrance evaluation center, packaging design, and two pilot plants that support production scale up capabilities for the company’s beauty care and laundry and home care divisions.
“With the expansion of our research and development facilities in Trumbull, Henkel is demonstrating its commitment not only to the local community, but to continuing the growth its laundry, home care and beauty care businesses,” said Dr. Charles Crawford, head of R&D for Henkel’s laundry and home care division in North America.
“By broadening our scientific and technical capabilities, we are investing in our position as a leading provider of laundry, home care and beauty care products in North America, enabling our brands to launch innovative new products that delight consumers,” he said.
Consumer products developed by this division include Persil ProClean, All and Purex laundry detergents; Snuggle fabric conditioners; Renuzit air care products; and more.
For the first quarter of 2018, organic beauty care sales fell 4.3%. Excluding the impact from the delivery difficulties in North America, sales would have been around prior-year level, according to the company.
The laundry and home care business unit registered a slight decrease (0.7%) in organic sales in the first quarter. Excluding the delivery difficulties in North America, laundry & home care would have reported a good sales growth.
In May, Henkel agreed to acquire JemPak Corporation, Canada, for about €77 million (about $90 million). Last year, JemPak had sales of approximately $70 million and employs 140 people. Based in Concord, Canada the business is focused on the US and the Canadian laundry and home care retailer brands business and offers products in attractive and growing categories such as automatic dishwashing, laundry caps and fabric finishers. It operates two manufacturing sites.
“This acquisition complements and strengthens our existing laundry and home care portfolio in North America. We will further expand our No. 2 market position in this attractive market and will strengthen our leading position in the retailer brands category in North America,” explained Bruno Piacenza, EVP-laundry & home care business.
For the year, Henkel expects organic growth of 0-2% for beauty care and 2-4% for laundry and home care.