November 9, 2022
Personal care giant beauty care sales jumped +8.4% despite disruptions from planned portfolio consolidation.
Hair cosmetics was the Group’s best-performing beauty category in the third quarter.
Henkel believes its strong performance in the third quarter of 2022 will be a factor in price increases and growth in its Consumer and Professional Hair Care business.
German personal care giants reported +11.3% organic sales growth overall.
The 2x digital rise is the “highest ever quarterly turnover” and achieves revenues of around €6 billion.
The group’s Adhesive Technology division was the biggest driver, but aesthetics contributed to the growth.
Henkel’s Beauty Care division posted a nominal +8.4% increase in sales, up +0.9% year-on-year.
This was offset by double-digit price gains despite the reported decline in trading volumes over this period due to the group’s planned ‘portfolio optimization measures’.
Henkel is preparing to combine its Beauty Care and Laundry & Home Care divisions into a single entity known as the Henkel Consumer Brand.
The group plans to have an organization in place by early 2023, and we expect this category to be impacted until then.
Carsten Knobel, CEO of Henkel, said:
“We consistently pushed forward the implementation of portfolio optimization measures, continued tight cost control and worked to further improve efficiency.”
Hair cosmetics was the Group’s best-performing beauty category in the third quarter.
The Hair Styling business reported double-digit growth in organic sales during the period.
A surge in sales in the hair color and hair care businesses also helped.
This was “particularly driven by emerging markets,” Brand said.
However, sales in the Group’s body care category were below those of the same period last year.
Henkel has now raised its full-year organic sales guidance to between +7% and +8% for the remainder of the year.
However, expected sales for the Beauty Care business are only nominally growing between -1.0% and 0.0%.
The Group expects the unit to continue to be impacted by portfolio mergers.
Blondme, FibrePlex, Kenra Professional, Natural Styling and Schwarzkopf are hair care brands in Henkel’s portfolio.
