Q3 2024 Henkel AG & Co KGaA Earnings Call Transcript
Key Points
- Henkel AG & Co KGaA (HELKF) reported strong organic sales growth of 3.3% at the group level, with adhesive technologies growing by 3.7% and consumer brands by 2.7%.
- The company achieved continued strong gross and EBIT margins in Q3, allowing for increased investment in brands and businesses.
- Henkel's adhesive technologies business outperformed relevant markets, driven by customer-centric innovations and sustainability-focused solutions.
- The consumer brands segment saw high single-digit organic sales growth in the hair business for the fifth consecutive quarter, supported by volume growth and market share gains.
- Henkel reiterated its full-year guidance and expressed confidence in reaching the upper half of the ranges for both adjusted EBIT margin and adjusted EPS growth.
- The consumer brands segment experienced a volume decline, with volumes remaining below the prior year quarter, impacted by ongoing portfolio optimization measures.
- North America showed a decline in both business units, reflecting a challenging market environment and the impact of portfolio optimization in consumer brands.
- The company faced headwinds from foreign exchange effects, which negatively impacted sales by 3.6%.
- The automotive segment within adhesive technologies showed signs of weakness, reflecting a slowdown in market demand.
- Henkel anticipates lower profitability levels in the second half of the year compared to the first half, due to increasing direct material costs and higher marketing investments.
Good morning, and welcome to the Henkel conference call. (Operator Instructions) I will now hand over to Leslie Iltgen, Head of Investor Relations. Please go ahead.
Thank you, and good morning to everyone here in the call. A warm welcome on Henkel's Q3 performance call. I'm Leslie Iltgen, Head of Henkel's Investor Relations. Also, today, I'm joined by our CEO, Carsten Knobel; and our CFO, Marco Swoboda. Carsten will begin with an overview of the key developments and highlights in the third quarter.
Marco will follow with a more detailed review of the financial performance. As always, following the presentation, Carsten and Marco will be happy to take your questions.
Before handing over to Carsten, please let me remind you that this call will be recorded, and a replay will be made available on our Investor Relations website shortly after this call. By asking a question during the Q&A session, you agree to both the live broadcasting as well as the recording of your question
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