Henkel Shows Robust Business Development
The Group Ended the Corona Year Slightly Below the Previous Year's Sales
Henkel reported sales of 19.3 billion euros at the end of 2020, after what has been a difficult year for all companies. With a - in organic terms - decline of 0.7 per cent, this is only marginally below the level of the previous year. The company attributes its stable performance to innovation, digital transformation and its ability to adapt to market changes.
Good Second Half of the Year
According to the company, the Adhesive Technologies, Beauty Care and Laundry & Home Care product lines generated good organic growth, especially in the second half of 2020. Turnover from the Beauty Care division was down 2.8 per cent on the previous year's level, although the retail business generated strong sales growth. The Group believes that the latter was driven by new products that tapped into consumer trends, among other things. According to Henkel, the Laundry & Home Care business grew by 5.6 per cent. The company ascribes this both to the strong increase in demand for hygiene products and to new innovations.
This reportedly validates the growth strategy presented by the Group in 2020. It included boosting competitiveness in the areas of innovation, sustainability and digitalisation. The company has made investments to further accelerate innovation processes and bring new products to market faster. This has for example helped to respond quickly to the strong surge in demand for hygiene, disinfection and cleaning products. Furthermore, the Beauty Care and Laundry & Home Care business units have set up internal incubator teams to further accelerate innovation and develop new business models.
The company reportedly founded the Henkel dx unit to drive forward its digital transformation. It aims to unite digital and business process management with IT expertise within a single global organisation. It opened its first Innovation Hub in Berlin last year. Further hubs are to follow. In 2020, Henkel reported an increase in digitally generated sales of around 20 per cent, with consumer transactions growing by over 60 per cent.
Source, photo: Henkel