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MOSCOW (MRC) -- Henkel delivered strong
organic sales growth of 3.9 percent in the third quarter of fiscal 2020 –
despite the continued challenging economic environment as a result of the
COVID-19 pandemic, said Chemweek.
Group
sales totaled around 5 billion euros, corresponding to a nominal change of -1.5
percent. At the beginning of October, Henkel published preliminary figures for
its sales performance in the third quarter and presented its new guidance for
fiscal 2020.
"The impacts of the global coronavirus crisis continue to
determine the market environment. Nevertheless, Henkel achieved a good business
performance in the third quarter, with all three business units contributing.
This is evidence of our robust, diversified portfolio comprised of successful
brands and innovative technologies for our customers in the industrial and
consumer goods businesses. Furthermore, our additional investments in marketing,
innovation and digitalization are paying off. Plus, we significantly expanded
our digital sales in the third quarter, increasing their total sales share to
more than 15 percent,” said Henkel CEO, Carsten Knobel.
"The good
performance in the third quarter is also partly due to catch-up effects from the
second quarter, where the negative impacts of the COVID-19 pandemic were
particularly severe. But above all, it is the result of our strong global team,
which in this unprecedented and challenging time for all of us, is showing
enormous commitment as it continues to contribute to the long-term success of
Henkel."
Henkel performed well in this challenging market environment in
the third quarter. The Adhesive Technologies business unit was able to record a
recovery in demand across all business areas compared to the second quarter and
achieved positive organic sales growth overall compared to the same quarter of
the previous year. In the Beauty Care business unit, the Hair Salon business
also showed a recovery compared to the second quarter. Its organic sales
development year on year was, however, slightly negative. Conversely, the retail
business achieved very strong organic sales growth compared to the third quarter
of 2019. With demand for laundry detergents and household cleaners remaining
strong and thanks to catch-up effects from the second quarter, the Laundry &
Home Care business unit was able to record significant organic sales growth, and
thus continued its successful development.
"During the coronavirus
crisis, we adapted flexibly and quickly to changes while continuing to
vigorously pursue the agenda for purposeful growth that we introduced in March
this year. With our new full-year guidance, we provided our expectations for our
development over the remainder of the year. Although we assume that we will
continue to feel the negative impacts of the pandemic in the fourth quarter, we
do not expect to see further extensive lockdowns – such as those witnessed in
the second quarter – in the core regions essential for Henkel. We are convinced
that, with our strategic focus on purposeful growth, we are well positioned to
emerge stronger from the crisis,” Knobel added.
In the third quarter of
2020, sales of the Henkel Group decreased nominally by -1.5 percent to 4,999
million euros. Organically (i.e. adjusted for foreign exchange and
acquisitions/divestments), sales increased by 3.9 percent. At Group level, the
increase was driven by volume, with price and volume developments differing
between the business units. Acquisitions and divestments accounted for an
increase of 0.1 percent in sales. Foreign exchange effects had a negative impact
of -5.5 percent on the sales performance.
In the first nine months of
2020, sales decreased nominally by -4.5 percent to 14,485 million euros.
Organically, Henkel registered a negative sales development of -2.1 percent,
primarily due to volume effects. Over the first nine months of this year, price
trends were only slightly negative. Henkel’s business performance was
influenced, especially in the first six months of the year, by the negative
impacts of the COVID-19 pandemic on its Industrial and Hair Salon businesses in
particular. After recording the strongest decline in demand in the second
quarter, Henkel’s businesses recovered significantly in the third
quarter.
The emerging markets achieved organic sales growth of 8.8
percent in the third quarter. Organic sales development in the mature markets
was positive at 0.6 percent. In the Western Europe region, sales declined
organically by -1.2 percent year on year. By contrast, we were able to increase
sales in the Eastern Europe region by 10.4 percent. In the Africa/Middle East
region, we achieved organic sales growth of 13.9 percent in the third quarter of
2020. Organic sales growth was 2.9 percent in the North America region and 13.8
percent in the Latin America region. Organic sales development in the
Asia-Pacific region was positive at 1.2 percent. In the first nine months of
2020, the emerging markets posted organic sales growth of 1.3 percent, whereas
sales development in the mature markets was negative at -4.4 percent.
As
MRC informed
earlier, Henkel AG & Co. KGaA (Dusseldorf, Germany) announced that
Henkel Adhesives Technologies has officially inaugurated its new production
facility in Kurkumbh, India.
Henkel are also partnering with
Borealis and plastics solutions company Borouge to develop flexible
packaging solutions for detergents containing both virgin polyethylene (PE) and
high amounts of post-consumer recyclate (PCR) in efforts to increase
sustainability.
Ethylene and propylene are feedstocks for producing
polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report,
Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight
months of 2020, up by 5% year on year. Shipments of all ethylene polymers
increased, except for linear low desnity polyethylene (LLDPE). At the same time,
PP shipments to the Russian market reached 767,2900 tonnes in the eight months
of 2020 (calculated using the formula - production minus exports plus imports -
and not counting producers' inventories as of 1 January, 2020). Supply increased
exclusively of PP random copolymer. |
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