Henkel delivered an overall good performance in the challenging fiscal 2025, reporting organic sales growth of 0.9 percent and an increase in adjusted return on sales (EBIT margin) by 50 basis points to 14.8 percent, according to the company's annual results released March 11, 2026. Group sales amounted to about 20.5 billion euros, down 5.1 percent in nominal terms due to significant negative foreign exchange effects of -4.2 percent and divestments. Adjusted operating profit (EBIT) was 3,026 million euros, slightly below the prior year, but adjusted earnings per preferred share at constant exchange rates rose 4.7 percent to 5.33 euros.
Henkel CEO Carsten Knobel highlighted the persistent challenges, including military conflicts, geopolitical tensions, and trade and tariff disputes, which weakened consumer sentiment and industrial demand. Despite these headwinds, Henkel successfully moved forward, meeting key targets and driving transformation. The company will propose a 1.5 percent dividend increase to 2.07 euros per preferred share, reflecting its strong financial base.
Both business units contributed to the performance. Adhesive Technologies generated organic sales growth of 1.5 percent, driven by Mobility & Electronics, while Consumer Brands posted 0.3 percent organic growth, led by the Hair business area. The Consumer Brands business unit, which completed its merger ahead of schedule, saw adjusted return on sales improve significantly from 8.3 percent in 2022 to 14.5 percent in 2025, exceeding the original savings target of 525 million euros. The top ten brands within Consumer Brands, accounting for nearly 60 percent of revenue, posted very strong organic growth with positive volume increases.
Henkel continued to execute its strategic agenda through active portfolio management. The company divested its Retailer Brands business in North America in spring 2025 and completed several acquisitions to strengthen growth potential. Recent transactions include the acquisition of 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. These deals are subject to customary closing conditions and antitrust approvals.
Innovation remained a key focus, with Henkel launching new products such as Schwarzkopf's Creme Supreme hair coloration, which uses micro-bonding technology to reduce hair breakage. The company also opened a new Inspiration Center in Shanghai for Adhesive Technologies and continued to invest in sustainability, reducing its absolute Scope 1, 2, and 3 greenhouse gas emissions by 29 percent since 2021. Henkel received an A rating in the Climate category of the 2025 CDP assessment for the first time.
Looking ahead, Henkel expects further top- and bottom-line growth in fiscal 2026, with organic sales growth of 1.0 to 3.0 percent and an adjusted EBIT margin of 14.5 to 16.0 percent. The company anticipates a softer start to the year but remains confident in its strategy. As Henkel celebrates its 150th anniversary in 2026, Knobel emphasized the company's commitment to pioneering for future generations.
