Henkel delivered an overall good performance in a challenging fiscal 2025, characterized by moderate global economic growth and a complex geopolitical environment. Group sales amounted to around 20.5 billion euros, with organic growth of 0.9 percent. The adjusted EBIT margin increased by 50 basis points to 14.8 percent, while adjusted earnings per preferred share at constant exchange rates rose by 4.7 percent to 5.33 euros. Free cash flow stood at about 1.9 billion euros, and the company proposed a dividend increase of 1.5 percent to 2.07 euros per preferred share.
Henkel CEO Carsten Knobel stated, "Our business environment has been and continues to be marked by major challenges, including military conflicts, geopolitical tensions, and far-reaching trade and tariffs conflicts. Despite the continuing difficult economic conditions, we successfully moved Henkel forward in 2025. We achieved or even exceeded key targets and continued to drive the transformation of our company." The company's organic sales growth was primarily price-driven, with volume remaining flat year over year. The Adhesive Technologies business unit generated good organic sales growth of 1.5 percent, driven by the Mobility & Electronics business area, while the Consumer Brands business unit posted positive organic sales growth of 0.3 percent, driven by the Hair business area.
The company made major progress in its transformation process, including the successful completion of the merger of its consumer goods businesses into the Consumer Brands business unit, one year earlier than originally planned. The originally targeted annual savings of 525 million euros were exceeded. The adjusted return on sales for the Consumer Brands business unit improved by 6.2 percentage points over three years, from 8.3 percent in fiscal 2022 to 14.5 percent in fiscal 2025. Henkel also advanced its active portfolio management, divesting the Retailer Brands business in North America and signing agreements to acquire ATP Adhesive Systems AG, Stahl Group, and "Not Your Mother's" hair care brand, representing a combined additional sales volume of around 1.2 billion euros.
Looking ahead to fiscal 2026, Henkel expects organic sales growth of 1.0 to 3.0 percent, with an adjusted EBIT margin in the range of 14.5 to 16.0 percent. Adjusted earnings per preferred share at constant exchange rates are expected to increase in the low to high single-digit percentage range. The company continues to invest in innovation, sustainability, and digitalization, with initiatives such as AI-supported TV commercials and new research centers. Henkel also announced plans to evaluate the possibility of establishing separate legal entities for its two business units in Germany, subject to shareholder approval at the 2026 Annual General Meeting.
For more information, visit Henkel's website and view the original release on NewMediaWire.
