Corporate Sales: $23 Billion
Beauty Sales: (Consumer Brands-Laundry and Home Care and Beauty Care): $11.5 Billion

Major Products:

• Schwarzkopf
• Dial
• got2b
• Blonde
• Alterna
• Bonacure
• Essensity
• Pravana
• Joico
• Kenra
• Naturelle
• Sparks
• SexyHair
• Wellphoria
• Zotos

New Products:

• Vidal Sassoon (in Greater China)
• Got2b relaunch of the entire styling portfolio
• Schwarzkopf Professional Blondme Barbie Collection
• Pravana HydraGloss
• Kenra Simply Add Water Shampoo and Conditioner

Comments: The Consumer Brands business unit saw strong organic sales growth of 6.1%, driven particularly by the Laundry & Home Care and Hair business areas.

Sales in the Consumer Brands business unit reached $11.5 Billion in fiscal 2023 and was 3.3% below the prior year. This was affected by foreign exchange effects reducing sales by 4.4%. The sale of business activities in Russia had a large impact on sales, resulting in a 5.1% decrease.

Henkel decided to exit its activities in Russia in April 2022, a few weeks after Russia attacked Ukraine. This was followed by a highly complex divestment process and in April of 2023, Henkel was able to sell its business in Russia to a consortium of local financial investors. The agreed purchase price amounted to around 600 million euros.

In 2022, Henkel merged its Laundry & Home Care unit with its Beauty Care unit to create the Consumer Brands business unit. This new unit went ‘live’ in January of 2023. This multi-category platform has since enabled large dynamic growth. The Consumer Brands business has achieved very strong organic growth and returned to a double-digit adjusted EBIT margin.

The integration process progressed much faster than originally planned. More than 200 million euros of the targeted savings of around 250 million euros by the end of 2024 had already been achieved by the end of 2023. The targeted total savings from phase 1 were increased to 275 million euros.

In its Consumer Brands business, Henkel divested or discontinued brands and activities representing total sales of around 650 million euros. This followed the announcement to merge the two consumer businesses in early 2022.

The second integration phase, which focuses on optimizing the supply chain network in the Consumer Brands business has also started. In addition, the “1-1-1 principle,” meaning one order, one delivery, and one invoice, has already been introduced in the first countries.

In 2023, Henkel achieved savings of about 80 million euros from phase 2 of the integration. The expected total savings from phase 2 increased from at least 150 million euros to around 250 million euros. The expected total savings from both phases of the integration, which are to be realized in full swing by the end of 2026, have increased from 400 million euros to 525 million euros.

In August of 2023, Henkel appointed Pernille Lind Olson as President of the North American region. Lind Olsen also serves as Corporate Senior Vice President of Adhesive Technologies Packaging & Consumer Goods; and Regional Head of Adhesive Technologies, North America. As president of the North American region, she succeeds Steven Essick, who has retired after 27 years with the company.

In company achievements, Forbes listed Henkel as one of the World’s Best Employers. The company was also ranked in the top five for the Packaged Goods industry. Olson stated that the company has an ongoing mission for collaboration and strives to create a dynamic workplace for its 8,000 North American employees and over 170,000 employees in over 50 countries.

In Beauty news, Henkel signed an agreement in February 2024, to acquire Vidal Sassoon in Greater China from Procter & Gamble. In the 2022/2023 fiscal year, Vidal Sassoon achieved over $2 million in sales in the Chinese market. With this acquisition, Henkel strengthens its presence in the Chinese haircare market.

Looking Ahead:

Henkel is expecting moderate growth in global economic output moving forward. This assumes a moderate increase in both industrial demand and consumer demand in key areas of the consumer goods business.

Henkel has invested in its businesses to further strengthen its brands and innovation. For example, the company plans to significantly increase marketing and sales investments to fuel future growth and further improve the profitability of the business.

The company expects to generate overall organic sales growth of between 2.0% and 4.0% in fiscal 2024. Adjusted return on sales is expected to be between 12.0 – 13.5%. Adjusted return on sales is expected to be between 11.0 and 12.5% for Henkel’s Consumer Brands.

Corporate Sales: $10.2 billion
Beauty/Personal Care Sales: $4.2 billion

Major Products/Brands: Schwarzkopf, Dial, Syoss, Alterna, Blendax, Blonde, Color & Art, Diadermine, Fa, Gliss, Joico, Kenra, Naturelle, SexyHair, Taft, Zotos

New Products: Schwarzkopf Keratin Color, Color Alchemy, SalonLab&Me, Dial Complete Antibacterial Liquid Hand Soap, Gold, Joico Defy Damage.

Comments: Henkel’s Beauty Care business unit experienced a 2.6% sales decline in 2022. Although its Hair Professional business achieved strong sales growth, the company attributed the loss to its consumer business’ organic, below-the-prior-year level sales.

The other fiscal influence came from a newly implemented portfolio measure that entailed rolling Henkel’s Laundry & Home Care and Beauty Care businesses into an integrated “Consumer Brands” business unit. The move, which transpired in January 2022, was implemented to create “a multi-category platform for future growth.”

Henkel also reported progress in transforming its consumer portfolio, resulting in fundamental changes that include the global exit from the Oral and Skin Care categories, and from selective Body Care markets. Going forward, Henkel said it would continue to review its portfolio and “further reduce complexity.”

The second phase of the transformation will focus on the supply chain. To this end, Henkel wants to improve efficiency in its own production set-up and optimize the contract manufacturers network and its procurement costs. Living up to the “one face to the customer” principle, the company wants to drive commercial integration with optimized logistics capabilities. This second phase has already begun, and the measures are expected to be mostly implemented by the end of 2025, generating an estimated net savings of around 150 million euros.

In Henkel beauty news, the company acquired Shiseido’s Hair Professional business in Asia-Pacific and opened its “J-beauty innovation hub” in Tokyo. The hub for the Hair Professional business leverages the expertise of Schwarzkopf and Shiseido Professional in hair color innovation and trends as well as premium hair and scalp care, anti-hair loss, styling, and perm solutions.

At the grand opening, Carsten Knobel, Henkel CEO, said, that the new innovation hub was positioned to help accelerate impactful innovation and further strengthen Henkel’s Hair Professional business in that strategically important region.

In October, Henkel launched a salon-exclusive program that centers on its SalonLab Smart Analyzer, a digital device that uses a near-infrared sensor to analyze hair at a molecular level, enabling hairdressers to recommend hyper-personalized SalonLab&Me hair care products and services best suited for each client’s unique hair type.

Looking Ahead:

In the first half of 2023, Henkel reported that its newly formed Consumer Brands business unit was on track to realize a net savings (before reinvestments) of at least 400 million euros by the end of 2026. Henkel also reported that its Shiseido Hair Professional acquisition has been performing well.

As part of its phase two supply chain focus, Henkel announced that it has consolidated the production network for the European Hair and Body Care business. In addition, the company began rolling out a “1-1-1 principle” related to driving forward commercial integration with optimized logistics processes.

Overall, Henkel said it expected global economic growth to weaken in 2023, with inflationary pressures likely to result in labor cost increases and continued high energy and commodity costs, with average prices for direct materials being increased by a low to mid-single-digit percentage compared to the 2022 annual average. That said, Henkel said it assumed industrial demand will be more subdued than in the previous year, resulting in slowed growth in key areas of the company’s consumer goods business, likely translating into organic sales growth of between 1-3% in fiscal 2023.

Corporate Sales: $23 billion
Beauty Sales: $4 billion

Major Products/Brands: Barnängen, Dial, Fa, Hawaii, Le Chat, La Toja, Magno, N.A.E., Neutro Med, Tone, Schwarzkopf, Syoss, Authentic Beauty Concept, Alterna, Blendax, Blonde, Color & Art, Diadermine, Gliss, Joico, Kenra, Naturelle, SexyHair, Taft, Zotos.

New Products: Colour Alchemy hair dyes, Shiseido Professional (acquisition), Taft relaunch, Ingora Royal launch, Nature Box solid form and refill packs, Gliss 7sec Repair Kur, Gliss silicone-free hair care products.

Financial Summary:

Henkel’s overall corporate sales rose 4.2% to $23 billion in fiscal 2021 despite a very challenging business environment with unprecedented disruptions in global supply chains, a shortage of raw materials and strong material price increases.

Beauty Care, which makes up 18% of Henkel’s business, recorded sales of $4 billion and organic growth of 1.4%. While the recovery in the Professional business area had a positive effect following the closures imposed in the first waves of the pandemic, Beauty Care’s consumer business area was impacted in particular by a normalization of demand—after strong increases in the previous year—in the body care category, causing a decline in performance. As a result, the Professional business achieved significant double-digit organic sales growth. By contrast, organic sales development in the Consumer business was negative.

The regional picture shows that sales growth was in the double-digit percentage range across all emerging markets with the exception of the Eastern Europe region, which posted significant organic sales growth. Both the Consumer and the Professional business areas contributed to the growth posted in all regions. By contrast, sales decreased in the mature markets. The double-digit percentage growth in the Professional business was unable to fully offset the negative performance especially in the North America region, which was significantly down year on year, mainly as a result of demand returning to normal in the Body Care category. Performance was also negative in the Western Europe region, whereas the mature markets of the Asia-Pacific region showed significant growth.

2021/2022 Highlights:

In 2021, sustainable packaging and expanding sustainable brands and product ranges was an area of focus for the consumer businesses of Henkel. This includes the group’s Beauty Care brands Nature Box and N.A.E. Additionally, Henkel aims to have 100% of its packaging be re-usable or recyclable by 2025.

In September 2021, Henkel, L’Oréal, LVMH, Natura &Co and Unilever joined forces to co-develop an industry-wide environmental impact assessment and scoring system for cosmetics products. The goal is to co-design an approach that is brand-agnostic, and which provides consumers with clear, transparent and comparable environmental impact information, based on a common science-based methodology. The objective is to improve the information that is available to consumers and enable them to make more sustainable consumption choices.

In October 2021, Henkel named David DiBernardino regional head, Consumer Beauty Care North America. DiBernardino will lead the Henkel Consumer Beauty business in the U.S. and Canada, with goals that include continuing the business’ focus on building strong partnerships with retailers, meeting evolving consumer needs, advancing digitalization, and growing its eCommerce platforms to offer Henkel’s portfolio of personal care products to more consumers.

In February 2022, Henkel announced plans to merge its Laundry & Home Care and Beauty Care business units into one unit: Henkel Consumer Brands. The company started preparations for the integration process immediately and aims to have the new organization in place by the beginning of 2023. With the new business unit, Henkel will build one multi-category platform for growth, combining its consumer brands and businesses under one roof, including brands such as Persil and Schwarzkopf, also comprising the hair professional business. The merger is designed to drive growth and profitability for the consumer business and the company.

Also in February, Henkel signed an agreement to acquire Shiseido’s Asia-Pacific Professional Hair business, including leading salon-exclusive brands Sublimic and Primience. Shiseido will retain a 20% share in the business in Japan to support growth, while Henkel becomes a key player in the Asia-Pacific region. Henkel’s Professional Hair Care Business will be a part of its new multi-category platform.

In April 2022, Henkel announced that it will continue doing business in Russia for the time being despite the country’s invasion of Ukraine. The group, which has around 2,500 employees in Russia, stopped all investments as well as advertising and sponsoring measures in the country in early March, but CEO Carsten Knobel says that Henkel bears responsibility for its employees. “This is sometimes viewed very critically by the public. So, it is important to me to stress we are fully applying all applicable sanctions,” chairperson Simone Bagel-Trah told shareholders at the group’s annual general meeting.

In July 2022, Henkel expanded its largest and most technologically advanced logistics operations in North America at Bowling Green, Kentucky. The logistics hub underwent a $70 million upgrade over three years to integrate Industry 4.0 innovations to help optimize storage space, enhance efficiency, and drive digital automation. The state-of-the-art facility supports Henkel’s Laundry & Home Care and Beauty Care production, storage and distribution. Brands produced at the facility include Schwarzkopf hair care and Dial soaps.

Looking Ahead

Henkel has set the goal of becoming a climate-positive company by 2030 – 10 years earlier than previously planned. The group is committed to converting to CO2-free energy sources for its sites. It is also aiming to procure 100% of the energy required for its production processes from renewable sources by 2030. In 2021 Henkel already fully converted the first sites.

Considering high market uncertainty and volatility and the impact of further substantial increases in raw material and logistics costs, the company expects organic sales growth in the range of 2 to 4%, and an adjusted return on sales (EBIT margin) between 11.5 and 13.5% in fiscal year 2022.

Corporate Sales: $23.7 billion
Beauty Sales: $4.5 billion

Major Products/Brands: Dial, Schwarzkopf, SexyHair, Syoss, BC Bonacure, Better Natured, Diadermine, Fa, got2b, Indola, La Toja, Nature Box, Naturelle, Neutromed, Oil Ultime, Pert, Pravana, Seah, Wellphoria, Zotos Professional

New Products: Nature Box Solid Bars, N.A.E. Solid Bars, STMT grooming products, Gliss Kur Colour Perfector line, Gliss Kur Split Hair Miracle line, Diadermine Lift+ Phyto-Retinol, Syoss Compressed Micro Spray

Comments: Henkel’s overall 2020 corporate sales declined 4.3%, and its beauty care sales—which account for 19% of its business—dipped 3.2% to $4.5 billion.

Overall organic sales fell 2.8% in the company’s Beauty Care business unit, strongly impacted by its Hair Salon business due to enforced closures during the height of the pandemic in the first half of the year. Although recovery was on an upswing in the second half of the year, it slowed as infection rates rose and businesses were again forced to shutter toward year-end.

Despite the overall slowdown, the pace of market growth in the markets of importance to the Branded Consumer Goods business remained mostly positive. Growth in the North America region, in particular, was very strong. By contrast, the European market developed negatively, as did the Latin America and Asia-Pacific regions. The relevant markets in the Body Care category recorded very strong growth in the wake of higher sales of hygiene and soap products. The Hair Colorants business in the Hair Cosmetics category posted significant growth. By contrast, the relevant markets for Hair Care, Styling and Skin Care declined.

In September 2020, Henkel strengthened its portfolio by purchasing a 75% stake in Invincible Brands Holding, the parent company of direct-to-consumer (D2C) brands HelloBody, Banana Beauty and Mermaid+Me. Through this transaction, Henkel expanded its D2C go-to-market footprint in Beauty Care and added strong digital capabilities in areas such as performance marketing, analytics and fast innovation.

Also in September, Henkel North America’s Beauty Care Professional business launched STMNT, a range of effective, high-performing grooming goods that are designed for all, regardless of gender or style. The STMNT collection features 14 products ranging from shampoos, conditioners and all-in-one care products to pomades, sprays and powders for both long and short styles.

In November 2020, Henkel’s Beauty Care business started converting its Hair Coloration portfolio to aluminum tubes made of 100% recycled material. With this transition covering all Retail and Professional brands globally, Henkel supported a closed loop while at the same time reducing its environmental footprint. In addition, aluminum tubes are fully recyclable and widely recovered through existing waste management systems.

In December 2020, Henkel appointed Steven Essick as president of the North America region. Essick, who also serves as the regional head of finance, is a 23-year Henkel veteran, who has served in global financial and commercial leadership roles with Henkel across Asia-Pacific, Europe and North America.

During the year, the company increased its investments by around 200 million euros compared to 2019 to strengthen its brands, technologies and innovations, as well as to accelerate its digital transformation. As a result, it was able to further accelerate its innovation processes and bring new products faster to market. This helped Henkel to respond quickly to the demand for hygiene, disinfecting and cleaning products with “fast-track” innovations.

Additionally, to further accelerate innovation and develop new business models, Henkel’s Beauty Care unit established internal incubator teams, combining agile work approaches with the scale and expertise of a global company. The “Fritz Beauty Lab,” inspired by founder Fritz Henkel, aims to identify niches with growth potential for existing brands or white spots to create completely new brands.

In 2020, Henkel successfully continued to integrate sustainability in all its business activities and to drive progress along the entire value chain. New product launches addressed rising consumer expectations toward natural and sustainable products, such as solid bars under the Beauty Care brand Nature Box and others.

Henkel also entered into a virtual power purchasing contract for energy from renewable sources, which will cover the energy demand of all Henkel sites in North America. Furthermore, Henkel was the first company to issue a plastic waste reduction bond with a volume of around 100 million euros to finance measures to reduce plastic across the value chain. The bond underlines Henkel’s commitment to foster a circular economy and reduce plastic waste as well as to Sustainable Finance.

Henkel is also pursuing the goal of tripling the value of its operations, products and services in relation to its environmental footprint between 2010 and 2030. On the way to this long-term goal Henkel had defined medium-term targets for 2020. The company was able to achieve the set targets in most dimensions. Overall, Henkel improved its resource efficiency in 2020 by 64% compared to 2010.

2021 Highlights

According to Henkel’s Q1 2021 filing, overall group sales were down 0.8% due to the impacts of the global Covid-19 crisis that continue to adversely affect the social and economic environment in numerous markets around the world. The company’s Beauty Care unit posted a sales decrease of 1.1% compared to Q1 2020.

Organic sales development in the Consumer business area was positive compared to the prior-year quarter. Despite the ongoing burden of official closures of hair salons in numerous countries, Henkel’s Professional business area posted very strong organic sales growth in the first quarter of 2021.

In February 2021, Dial launched Clean + Gentle, a new line of body washes and antibacterial foaming hand washes. The line includes products that are not only hypoallergenic, but also dermatologist-tested and made without dyes, parabens, phthalates and silicones.

In March, the company published its 30th Sustainability report, detailing its achievements and progress. In 2010, Henkel defined a long-term sustainability strategy until 2030, underpinned by concrete targets and objectives. Over the past decade, Henkel achieved significant progress across all dimensions of its sustainability strategy. Overall, the company was able to reduce its environmental footprint by 39% across three dimensions—CO2 emissions, waste and water— significantly exceeding the target of a 30% reduction for 2020.

More recently, it was announced that Wolfgang König, formerly the category president of Kellogg North America, would join the Henkel management board as executive vice president for the Beauty Care business, effective June 1, 2021. He succeeded Jens-Martin Schwärzler.

Corporate Sales: $22.5 billion
Beauty Sales: $4.3 billion

Major Products/Brands:

• Schwarzkopf & Henkel, Schwarzkopf, Indola
• Clynol, Seah Hairspa, BC Bonacure
• Clynol hair care products, Dial, Fa
• Right Guard, Tone, La Toja
• Neutro mend, Coast, Dry Idea and Mont St. Michel body care products
• Aok and Diadermine skin care products

New Products:

• Wellphoria CBD and Hemp Seed Oil-Infused haircare products
• Hello Body, Banana Beauty, Mermaid+Me
• DevaCurl hair care products, Pril and Fa hand sanitizers, STMNT

Comments: Although Henkel’s overall 2019 corporate sales climbed 1.1%, its beauty care sales—which account for 19% of its business—dipped 1.8% to $4.3 billion.

Overall organic sales fell 2.1% in the company’s Beauty Care business unit. The company reported positive overall performances in its mature beauty care branded consumer goods markets (North America, Western European, Eastern Europe and Latin America). The Asia-Pacific region recorded double-digit growth. North America and Asia-Pacific led global growth in Henkel’s professional hair salon category, however Western Europe was characterized by “intense competition.”

To help ensure long-term growth in its Beauty Care business, Henkel boosted the number of its production sites to 13 (up from 11 in 2018). The company additionally increased its investments in capacities and technologies. In 2019, R&D dollars spent on its Beauty Care unit encompassed 18% of its total R&D expenditures.

In November, Henkel announced a new venture with TerraCycle to launch a free Schwarzkopf Recycling Program in the U.S. The program, which began in January 2020, enables U.S. consumers to recycle all Schwarzkopf retail hair care, color and styling products, through TerraCycle’s recycling platform. By recycling products through this program, U.S. consumers can earn points that can be redeemed for charitable gifts or converted to cash and donated to a non-profit, school or charitable organization of their choice. To participate, consumers mail all of their used Schwarzkopf packaging via a downloadable shipping label from the TerraCycle website. The used packaging is then cleaned and melted into hard plastic that can be remolded to make new recycled products.

2020 Highlights

According to Henkel’s Q1 2020 filing, overall group sales were down a nominal 0.8% despite the effects of Covid-19. The company’s Beauty Care unit posted a sales decrease of 2.6% compared to Q1 2019. Branded Consumer Goods unit sales were flat year on year, despite strong performances by the Body Care category and the Dial brand.

Earlier this year, Henkel North America doubled down on its sustainability commitments by joining the U.S. Plastics Pact, a collaborative, solutions-driven initiative created to drive systems change by unifying diverse cross-sector approaches, setting a national strategy, and creating scalable solutions to create a path forward toward a circular economy for plastics in the U.S. by 2025. It is billed to be the first North American Pact of its kind, and is a collaboration led by The Recycling Partnership, World Wildlife Fund (WWF) and Ellen MacArthur Foundation.

In August, the company relaunched its Schwarzkopf brand Gliss Kur with 96% natural-origin ingredients and a new packaging design. The line’s new logo is complemented with new, carbon-free black caps that are fully sortable in recycling plants. New PE bottles feature a reduction of metallic foil, are made from 30% recycled content and are 100% recyclable.

In September, Henkel North America’s Beauty Care Professional business launched a new, four-line grooming range curated by “a team of disruptors in the barbering industry” that is “designed to be accessible to all regardless of gender or style.” STMNT (pronounced “statement”) is comprised of 14 SKUs and includes shampoos, conditioners, sprays and powders, as well as a beard oil and body cleanser.

Corporate Sales: $23.3 billion
Beauty Sales: $4.7 billion

Major Products/Brands:
Personal Care, Hair Care, Body Care including:

• Schwarzkopf & Henkel, Schwarzkopf
• Zotos, Indola, Clynol
• Seah Hairspa, BC Bonacure, Clynol
• Dial, Fa, Aok, Diadermine

New Products:

• Barnängen
• got2b color
• Dial antibacterial hand soap with Mint Shea scent

Comments

After a banner fiscal 2017, Henkel’s 2018 numbers slipped 0.6% despite overall organic sales posting +2.4% growth.

Beauty sales rose 2.1% to $4.7 billion and comprised 20% of the company’s overall sales. Apart from the global hair colorants category, all of the company’s relevant beauty categories achieved positive market growth.

Henkel reported that its professional hair salon market continued to be characterized by intense competition in 2018, especially in the mature markets; however positive growth came mainly from product innovations such as those from its 120-year-old Schwarzkopf Professional brand, which added new products to the Igora and BlondMe lines. Hair color sales were also strong, as were market share gains across all regions, and were reported to have outperformed the market thanks in part to the company’s new brands like got2b Color, and existing brands such as Syoss Color. Henkel’s prowess in the segment gave the company leverage to further expand its position as the world’s No. 3 company in the professional hairdresser market.

Although the number of sites in Henkel’s beauty care production network held fast at 11, the company expanded its Latin America and U.S. sites to better fit into its production network. It also reported expanding capabilities and technologies within emerging markets to ensure long-term growth. The company continued expansion in Eastern Europe, specifically at its Russian factory, increasing production capacity in hair colorants, liquid products and aerosols. Henkel also increased capacity at sites in North America and Europe.

In July, the company opened its first Beauty Care Lab in Dubai, one of 22 global R&D centers, with the aim of leveraging its German technologies to cater to regional consumers’ needs while ensuring quality and regulatory compliance. Henkel also opened a Beauty Insights center in Düsseldorf that will be tasked with interpreting consumer product usage into the design and development of new products.

In November, Henkel launched Nature Box, a new hair and body care brand centered on cold pressed oils from coconuts, avocados, apricots, almonds, and macadamia nuts, and other ingredients that are sustainably sourced. Nature Box spans 22 items, including 11 hair care and 11 body care products. The full product portfolio includes shampoo, conditioner and treatments for hair care, as well as body wash, body lotion, body butter and liquid hand soap, and all products are packaged and labelled to encourage consumer recycling.

News of Note in 2019

Henkel’s beauty care segment sales fell in both Q1 and Q2 2019, dropping -2.2% and -2.4% to about $1.1 billion respectively. Nominally, sales in Q2 were -3.2% below prior-year level reaching about $1.1 billion. The company said it expected the Beauty Care business unit to develop below initial expectations for the year. Henkel had previously expected organic sales growth in the realm of 2-4% but adjusted its expectation to reflect an organic sales growth of -2-0%.

“The development of the Beauty Care Retail business was significantly below our expectations. On the one hand, this was due to not satisfying developments in mature markets such as North America and Western Europe. In China, the retail business was impacted by ongoing stock adjustments. In addition, marketing and sales expenses were higher overall,” commented CEO Hans Van Bylen. “The Professional business, however, continued its strong performance.”

In June, Henkel reported it would pour $19 million into an expansion plan for its West Hazleton, PA facility, enabling the company to open a new production line for both Dial body wash and Dial liquid hand soap.

On the packaging front, in April, Henkel Beauty Care launched new products from Fa and Nature Box in packaging made from 100% recycled plastic. The products were launched in the German market. And in August, the company announced it would make its EasyD4R software tool publicly available. The tool is capable of determining the recyclability of new packaging quickly and reliably.

Corporate Sales: $24 billion
Beauty Sales: $4.7 billion (FY 2017 Beauty Sales: $4 billion)

Major Products/Brands:

• Schwarzkopf & Henkel, Schwarzkopf, Syoss, Alterna,
• Antica Erboristeria, Aok, BonaCure, BlondMe, Color Mask,
• Clynol, Brilliance, Blonde, Brilliance, Color Ultime, Gliss, Igora,
• Kenra, Keratin Color, Kit Racines, Konzil, Got2Be, Osis,
• Sexy Hair, Pravana, Indola, Clynol, Clynol,
• TSG hair care products; Diadem, Diadermine skin care;
• Diosa, Essensity and Nectra Color hair color;
• Fa, La Toja, Neutromed personal cleansers; Dial;
• Tone, Coast, and La Chat Soaps

New Products:

• Alterna Caviar Cream, #mydentity haircolor,
• Zotos, Joico, Dial Complete 2-In-1 Foaming Hand Wash,
• Schwarzkopf Keratin Color with Pre-Color Serum

Henkel, By the Numbers

In fiscal 2017, Henkel delivered on its financial targets, weathering what it termed “challenging and volatile market conditions.”

While overall corporate sales grew by 7%, beauty care sales increased just 0.8% to about $4.5 billion, with top brands Schwarzkpf, Dial and Syoss contributing 0.5% towards organic sales growth. North American sales dipped, as did performance in Western Europe. The impacting factors, according to the company, included weakened promotional activity, as well as price and trade pressures in concert with declining average prices.

Last year the company’s beauty care segment launched #myidentity hair color with Guy Tang, a hairdresser and social media influencer. The product allows hairdressers to develop customized colors and styles for their clients.

News of Note 2018

Henkel continued to aggressively strengthen its position in the global salon hair care industry by closing an acquisition in January of Shiseido North America’s Zotos International professional hair care business for a reported $485 million, adding Joico and Zotos Professional brands to Henkel’s hair care portfolio.

This acquisition comes on the heels of Henkel’s September acquisition of Nattura Laboratorios, which owned the brand Pravana, and even earlier acquisitions of Sexy Hair, Alterna and Kenra brands.

To maximize its hair care moxie, in January 2018, Henkel opened a new, “technology-rich” Beauty Care Hair Professional headquarters in Culver City, CA, to bring together its professional hair care brands under one roof.

The company debuted SalonLab in January. Described as “a digital ecosystem for quantifying and customizing the hair care experience,” SalonLab brings hair care to the digital age by creating personalized on-demand hair care products using technologies such as near-infrared hair diagnostics and augmented reality color consults.

Henkel also cut the ribbon on a new, 24,000-square foot, state-of-the-art R&D facility in Stamford, CT. The facility is comprised of a formulation lab, which develops Henkel Beauty Care products including Dial, Right Guard, Tone, Schwarzkopf and got2b as well as Research@Elm, a clinical testing lab, and employs about 40 people.

Looking Ahead

In an effort to ensure future progress, Henkel outlined a forward-looking plan called Henkel 2020+, devised to drive growth, accelerate digitalization, increase agility and fund growth for the next several years. One goal is to double digital sales to more than four billion euros by 2020.

Growth will be driven by focusing on mature and emerging markets and by engaging with consumers. The company will also accelerate digitalization by implementing initiatives to enhance its digital business and “eTransform” its organization. In light of the aforementioned market volatility, increased agility will hinge on simplified processes to enhance faster-to-market capabilities. And finally, to fund growth, Henkel has pledged to optimize its resource allocation by increasing efficiencies and expanding its global supply chain organization. The expected goal by 2020 is to generate annual efficiency gains of more than €500 million.

Looking ahead even further, Henkel announced that 100% of its packaging would be recyclable, reusable or compostable. The company also aims to use 35% recycled plastic for its consumer goods products in Europe in the same timeframe.

Corporate Sales: $19.7 billion
Beauty Sales: $4 billion (Skincare: $1.6 billion; Fragrance: $1.5 billion; Color: $997 million)

Major Products/Brands: Schwarzkopf & Henkel, Schwarzkopf, Syoss, Alterna, Antica Erboristeria, Aok, BonaCure, BlondMe, Color Mask, Clynol, Brilliance, Color Mask, Color Ultime, Country Colors, Fibreplex, Fresh Light, Gliss Kur, Igora, Kenra, Keratin Color, Kit Racines, Konzil, Got2Be, Osis, Sexy Hair products; Diadem, Diadermine skin care; Diosa, Essensity and Nectra Color hair color; Fa, La Toja, Neutromed personal cleansers; Dial; La Chat Soaps, Barnängen.

New Products: Alterna Bamboo Beach, Gliss Kur Magnificent Strength hair care, Syoss Gloss Sensation hair color, Schwarzkopf Palette Intensive Color Crème, Schauma 7 Blossom Oil, Glam Force, Fa Coconut Water and Coconut Milk shower gels, Dial Soothing Care body care, Diadermine Lift + Super Corrector, Sun Products, Nattura Laboratories.

Comments: Henkel celebrated 140 years in 2016, and while business was booming in its other segments, the company’s beauty care sales experienced only a +0.1% nudge of upward growth. Henkel’s beauty segment accounted for 20% of the company’s 2016 revenue stream (€3.8 billion). The lynchpin behind the gain was its Schwarzkopf brand, which generated more than €2 billion in sales and is the star of the company’s top 10 beauty brands responsible for delivering more than 90% of Henkel’s beauty division sales.

The company noted weak development in its mature Branded Consumer Goods markets. Specifically, promotional activities and pricing pressures took a bite out of Western European returns. And while Africa/Middle East sales demonstrated continued expansion, growth in Asia, outside Japan, slowed due to weakness in China. The markets in North America and Latin America showed positive momentum.

The company also singled out its professional hairdressing market as “under pressure” in 2016 as customers continued to exhibit restraint. Despite the difficult market environment overall, Henkel said it was able to exceed its previous year sales level and also further extended its position as No. 3 in the world in the hair salon field.

News of Note in 2017

Henkel’s 2017 Q1 beauty care sales rose 6.4% to about $1.1 billion, with a sturdy performance in the company’s North American territory. Emerging markets also took a shine to Henkel’s salon products; beauty sales remained constant in Western Europe.

In September, Henkel added depth to its beauty care business by closing on its acquisition of Nattura Laboratorios, S.A. de C.V., headquartered in Guadalajara, Mexico, with associated companies in the U.S., Colombia and Spain. Delivering on expanded market positions in the U.S. and Mexico, the transaction added a portfolio of brands including Pravana and Tec Italy to Henkel’s core Hair Professional category. In the fiscal year 2016, Nattura Laboratorios generated sales of more than 100 million euros.

Looking Ahead

Sustainability continues to be a key corporate focus for Henkel. As a participant in the New Plastics Economy initiative, in August, Henkel joined forces with partners from across industries to innovate in the design, production and recycling of packaging materials. In one instance, the company collaborated with Ball Corporation to develop a technology that uses up to 25% recycled aluminum in cans for the deodorant sprays from Henkel’s Fa, Souplesse and Neutromed brands.

Corporate Sales: $19.8 billion
Beauty Sales: $4.2 billion

Major Products/Brands: Personal care, skin care, professional and branded hair care, antiperspirants & deodorants and oral care sold under brands including Schwarzkopf & Henkel, Schwarzkopf, Indola, Syoss, Clynol, BC Bonacure, Dial, Fa, Got2B, Right Guard, Tone, Coast, Dry Idea, Aok, Diadermine, Licor del Polo, Antica Erboristeria, Theramed and Pert.

New Products: Schwarzkopf Men, Schwarzkopf Keratin Color, Dial Miracle Oil and Dial Omega Moisture Body Washes Featuring Marula Oil and Sea Berries, Dial Baby Body+Hair Wash, Dial Kids Foaming Hand Wash, Taft Ultimate.

Comments: Beauty represented about 21% of Henkel’s overall corporate sales and the company enjoyed a +2.1% growth in organic beauty care sales in fiscal 2015. Henkel credited its strong customer focus as one of the “key pillars” of its “long-term profitable growth.” The company also continued to follow a strategy of global expansion for its beauty arm, with help from its Düsseldorf-based Beauty Care Lighthouse customer center, which extended its reach and strategic partnerships with retailers around the world, leveraging global and local agreements and joint business planning.

Henkel’s emerging markets made “above-average” contributions to overall growth, with organic sales expansion of 5.9% and momentum coming from regions of Eastern Europe, Africa/Middle East and Latin America.

Pointing to the need to keep up with a beauty care environment characterized by “fierce completion,” Henkel invested internally to improve efficiencies and more flexibly meet the needs of its global beauty care customer base. Specifically, the company installed a new high-speed filling system for liquid products at its Wassertrüdingen, Germany site. Production capacity was also expanded in Asia, America and Eastern Europe.

In January, Henkel introduced its Schwazkopf Ultime hair color line to the U.S. mass market with an exclusive Walmart launch. Developed with Claudia Schiffer and celebrity hairstylist Richard Collins, the collection is divided into four lines: essence Ultime (four hair care products for various hair needs), Styliste Ultime (styling products including hairspray dry shampoo), color Ultime (hair color with 26 shades) and Keratin Color Ultime (16 hair colors for mature hair).

In August, Henkel launched the Schwarzkopf Men hair care line to China, Germany and Russia, representing a confluence of two important factors: men’s grooming and market sectors Henkel considers important to advancing its beauty care business.

Henkel also expanded its popular range of body washes with the addition of Dial Miracle Oil Body Wash and Dial Omega Moisture Body Wash formulated with marula oil and sea berries (respectively) to quench dry skin.

News of Note in 2016

Henkel began 2016 with a flurry of corporate jostling. In January 2016, CEO Kasper Rorsted, announced that he would leave Henkel to take over as CEO of Adidas. Rorsted was succeeded by Hans Van Bylen, who up until that point had served as executive vice president of Beauty Care. Replacing Van Bylen is Pascal Houdayer. Houdayer was previously Henkel’s corporate senior vice president in the laundry and home care business unit, having joined Henkel in 1993.

In March 2016, Henkel announced the acquisition of P&G’s Pert, Shamtu and Blendax hair care brands, which expand Henkel’s positioning in the emerging market regions of Africa/Middle East and Eastern Europe. The sales of the brands to be acquired reached close to $100 million.

Looking Ahead

Henkel said that by the end of 2016, it expects to have increased its total corporate sales in emerging markets by $11.2 billion.

Corporate Sales: $20 billion
Beauty Sales: $4.3 billion

Major Products/Beauty Brands: Personal care, skin care, professional and branded hair care, antiperspirants & deodorants and oral care sold under brands including Schwarzkopf & Henkel, Schwarzkopf, Indola, Syoss, Clynol, BC Bonacure, Dial, Fa, Right Guard, Tone, Coast, Dry Idea, Aok, Diadermine, Licor del Polo, Antica Erboristeria, Theramed, Pert.

New Products: Syoss Oleo 21, Schwarzkopf Essence Ultîme, Schwarzkopf Schwarzkopf Professional’s BC Bonacure professional hair care treatment, Schwarzkopf Nectra Color, Diadermine N°110; Taft Invisible Power, Gliss Kur Million Gloss, Got2b Rise ’n Shine, Right Guard Protect 5, Fa Vitalize & Power shower gels.

Comments: Conflicts in Eastern Europe and the Middle East did not help Henkel in 2014. Still, sales remained positive and emerging countries contributed about 44% of sales. Beauty sales rose 1% last year to $4.3 billion; organic growth was 2%. Beauty care accounts for about 22% of Henkel’s business. According to Kasper Rorsted, Henkel’s chief executive officer, “In 2014, we achieved our financial targets, made very good progress with our strategy implementation and laid a strong foundation to achieve our targets for 2016.” In 2016, Henkel aims to surpass €20 billion in corporate sales.

Henkel increased its global footprint in 2014 through a number of targeted acquisitions, and purchased three U.S. professional hair care companies—Sexy Hair, Kenra and Alterna—to expand its position in the North American market.

Henkel’s leading beauty brand, Schwarzkopf, which the company says is the global hair expert in both the retail and professional businesses, generated around $2.4 billion, more than half of total beauty sales for the year. Continual innovation is credited for Schwarzkopf gaining market share in all categories.

Henkel also launched a number of digital initiatives to strengthen relationships with customers and consumers. For instance, the viral video “Schwarzkopf—A declaration of love,” has been viewed over 15 million times on YouTube. Another example is the launch of the 3D Schwarzkopf hair advisor app that enables consumers to virtually color and style their hair—either directly at the point of sale or on a smartphone at home. Additional product information is immediately accessible and products can be purchased directly online.

Henkel claims the No. 3 position in the Chinese hair care market thanks to its Schwarzkopf and Syoss brands.

Sales in Henkel’s Hair Salon business were lower year on year due to what they term “difficult market conditions,” but the company said it still outperformed the “market of relevance.”

In Hair Colorants, Schwarzkopf Nectra Color, the brand’s first permanent hair colorant without ammonia, attracted new consumers. Ammonia-free Palette Perfect Gloss, which provides optimal gray coverage, was also a hit.

In Hair Care, the introduction of the Essence Ultime brand was pronounced “a major growth driver.” This brand was exclusively developed with model Claudia Schiffer.

Innovation, central to Henkel’s thinking, paid off in its Body Care business with Fa Floral Protect, a line of antiperspirants with floral fragrances and 48-hour protection. Fa Vitalize & Power is a line of shower gels with vitamins for a refreshing feeling. The vitamin concept was also introduced under the Dial brand. Right Guard Protect 5 claims its innovative formula detects sweat as it appears, and protects for up to 72 hours.

In Skin Care, Diadermine launched its first anti-aging line, N°110, to mark 110 years of dermatological expertise. The key ingredient in all products is 110 drops of an advanced concentrate designed to activate 11 signs of younger skin.

Henkel expanded its R&D center in Shanghai, China, in 2014. Its lab and test salon, in Johannesburg, South Africa, worked to develop products tailored to “afrotextured” hair, creating Schwarzkopf Smooth ’n Shine, a new range of hair care products.

Corporate Sales: $22.5 billion
Beauty Sales: $4.7 billion

Major Products: Hair care, hair colorants, hair styling, body care, skincare and oral care sold under brands including SexyHair, Alterna, Kenra, Schwarzkopf & Henkel, Schwarzkopf, Indola, Clynol, Seah Hairspa, BC Bonacure, Clynol, Licor del Polo, Antica Erboristeria, Theramed and Denivit, Dial, Fa, Right Guard, Tone, La Toja, Coast, Dry Idea, Aok, Diadermine.

New Products: Dial Vitamin Boost and Yogurt Body Wash, Dial Kids Peachy Clean Body & Hair Wash, Alterna Bamboo Kendi Oil, Igora Expert Mousse, Clynol Kera Rebuild, Right Guard Total Defense 5, Sexy Hair Big Sexy Hair Volumizing Dry Shampoo.

Comments: Despite what Henkel called a “difficult economic situation in the Eurozone” and only a partial recovery in the U.S., the German brand manufacturer said 2013 proved to be a good year—mostly due to growth driven by emerging markets, which accounted for 44% of sales. Even though, currency devaluation and political instability put more of a damper on things than in years past. While sales remained relatively flat compared to 2012, Henkel says they were able to increase their profitability.

Overall, Henkel Group revenue reached $22.5 billion, which represented an organic growth of 3.5% over 2012.

Beauty Care accounted for 21% of corporate sales—up 3% in organic growth to about $4.7 billion. Beauty gained market share thanks to a strategy that focused on leading brands, innovation and customer satisfaction.

In 2013, Henkel reported that growth in the “relevant world cosmetics market” continued to slow. The company’s beauty markets declined due to increased competition and over-crowding of the space. Still, the Beauty Care business unit was able to gain market share and continue to strengthen its leadership position in certain markets.

Henkel reported a strengthening in beauty markets in Western Europe and in core segments in North America. Sales in emerging markets continued to grow, particularly in Africa/Middle East, Latin America and Asia (excluding Japan). The markets of Eastern Europe stagnated at the level of the previous year and experienced even stronger competition. Nevertheless, Henkel said it expanded business in all regions, mostly through successful international launches of several product innovations.

The Hair Salon business was also extremely challenging, with weak consumer purchasing, especially in southern Europe. But Henkel reports that even in this difficult environment, they outperformed the markets that are relevant to them, and anchored their global position as No. 3 in the hair salon market.

Innovations during 2013 included a formulation platform for oxidative hair colorants launched under the Igora brand; and the oxidative hair colorant Color Ultimate, developed in conjunction with an aerosol filler. This product is very easy to use because there is no separate mixing step, and it provides an ecological advantage due to its multi-application dispenser. There was also further development of the hair care platforms for Bonacure and Gliss Kur through Keratin-Primer technology, which strengthens hair fibers from within.

Boosting North American Hair Care

Looking to extend its Hair Care position in North America, Henkel announced the purchase of three leading U.S. hair care brands—SexyHair, Alterna and Kenra—from TSG Consumer Partners, San Francisco, for about $370 million. Actress Katie Holmes is a co-owner and spokesperson at Alterna.

Henkel’s CEO, Kasper Rorsted, said, “This acquisition is part of our strategy to invest in attractive country category positions in mature markets.” He added “North America is the biggest single market for Henkel and with these companies, we will further strengthen our presence in this region.”

In the fiscal year 2013, the three acquired companies generated sales of about $190 million.

In February 2014, Henkel played on the benefits of vitamins and yogurt in foods, and launched a bestseller in body care with the introduction of two new body wash lines—Dial Vitamin Boost and Dial Yogurt. Not only did the products claim exciting, new ingredients, but they also feature Dial’s Moisture Balance formula for lasting, lightweight hydration without any residue.

Looking ahead,   Rorsted said the company has a clear strategy: “We will outperform our competition as a globalized company with simplified operations and a highly inspired team. By 2016 we aim to generate 20 billion euros in total sales for Henkel—10 billion euros in emerging markets and 10 billion euros in mature markets. These are ambitious targets.”

Corporate Sales: $22 billion
Beauty Sales: $4.7 billion

Major Products: Hair care, skin care, body care and oral care products under brands including Schwarzkopf, Indola, Clynol, Seah Hairspa, BC Bonacure, Clynol, Dial, Fa, Right Guard, Tone, La Toja, Coast, Dry Idea, Mont St. Michel, Aok, Diadermine, Antica Erboristeria.

New Products: Gliss Kur, Schwarzkopf Igora Expert Mousse, Schwarzkopf BC Oil Miracle, Fa Shower and Lotion, Right Guard TD5 Cooling, Syoss Beauty Elixir Absolute Oil.

The Dial brand is a top performer at Henkel.

Comments: All of Henkel’s business sectors achieved growth in 2012. CEO Kasper Rorsted said they had met their goals, reduced their debt and improved cash flow, as well as set a strong foundation for the coming years. With corporate sales that rose 5.8% to $22 billion in a challenging economy, Rorsted declared: “2012 was the most successful year for Henkel so far. We achieved excellent results in a highly volatile and competitive market environment and met or exceeded all financial targets.”

In 2012, the Beauty Care business sector—which accounts for 21% of Henkel’s sales—continued its profitable growth recorded in previous years. Sales increased to $4.7 billion.

From a regional perspective, business performance was especially strong in the emerging markets, with Asia (excluding Japan) achieving strong double-digit growth thanks to China. The Africa/Middle East region also posted double-digit growth rates. Sales growth was also strong in Latin America, despite political instability. Henkel said it was able to increase overall sales in the mature markets, with particularly good sales performance in North America. In Europe, the company managed to sustain the level of sales achieved in 2011 despite the economy. Sales in the mature markets of the Asia-Pacific region, however, fell short of the previous year’s level. This was due to the difficult market environment in Japan, which was not compensated by the good performance in the other mature markets in this region.

Henkel said the increase in sales was once again much higher than the growth rate of its relevant markets. Success was attributed to its strong innovation program, along with selectively increasing prices.

Notable beauty innovations in 2012 included Schwarzkopf Color Mask, the first Schwarzkopf colorant in a jar; Right Guard TD5 Cooling, in which cooling active ingredients stimulate the skin’s cold receptors for a long-lasting fresh, cool feeling; and Syoss Beauty Elixir Absolute Oil, a professional lightweight micro-oil formula that nourishes and smooths hair without weighing it down.

Henkel continues to strengthen its global presence. For example, in November 2012, it opened a Beauty Care Asia-Pacific logistics hub in Thailand, to serve as a platform to enable future growth in the Asia-Pacific region.

Going forward, Rorsted proposed three lofty goals targeted for 2016: 20 billion euros in sales; 10 billion euros in emerging markets; and 10% earnings per share. By 2016, 12 out of Henkel’s top 20 countries in terms of sales are expected to be emerging markets. “Outperform,” “Globalize,” “Simplify,” and “Inspire” are the four strategies the German manufacturer has set forth to further succeed in its growth efforts.

Strong performance continued into 2013. Sales in the second quarter rang in at $5.6 billion, an increase of 1.9% versus the prior-year quarter.

Beauty Care recorded solid sales growth in the second quarter and a strong increase in adjusted return on sales. Nominally, sales rose by 0.2% to $1.2 billion.

As in previous quarters, Africa/Middle East and Asia (excluding Japan) recorded a particularly strong performance, each region posting double-digit percentage growth rates. The growth driver in these markets remains China. Sales in the mature markets increased, despite the difficult business climate. North America once again registered a solid growth rate, and Western Europe, too, continued its positive development.

Corporate Sales: $20.2 billion
Beauty Sales: $4.4 billion (cosmetics & toiletries)

Major Products: Schwarzkopf, Dial, Syoss, Indola, Clynol, Seah Hairspa, BC Bonacure, Clynol, Fa, Right Guard, Tone, La Toja, Coast, Dry Idea, Mont St. Michel, Aok, Diadermine, Licor del Polo, Antica Erboristeria, Vademecum, Theramed, Denivit.

New Products: Gliss Kur Ultimate Repair, Fa NutriSkin, Bonacure Oil Miracle, Syoss Mixing Colors, Palette Mousse Color, Taft Volume Powder, Got2b Powder’ful, Got2b Rockin’It, Dr. Caspari Hormoderm, Osis Style Shifters, Dial NutriSkin.

Comments: Despite the global financial problems that plagued them along with their competitors, Henkel managed to achieve a record year, with a healthy corporate net sales total of $20.2 billion, up 3.4% over the prior year. The company reported that it had significantly increased both sales and profits in all of its business units while continuing to strengthen its position and grow revenues in many areas. Emerging markets were key to growth—now generating 42% of Henkel’s corporate sales—and remain a crucial part of the company’s long-term strategy. An increase in selling prices also contributed to the bottom line.

Cosmetics and Toiletries accounted for 22% of the overall global total, or about $4.4 billion, up 4%.
“2011 was another very successful year for Henkel. Despite major challenges in a volatile economic environment, we fully achieved our ambitious targets—and even overdelivered on some of them. Sales and profits are higher than ever before,” said Henkel CEO Kasper Rorsted. “A major factor driving Henkel’s strong performance was the further expansion of our position in the emerging markets, where we once again registered double-digit growth. We made considerable progress in 2011, establishing a strong platform for Henkel’s future. Thus, we are very confident of achieving the targets for fiscal 2012 that we set in 2008.”

Henkel’s new CFO, Carsten Knobel

The strongest gains continued to be from the emerging markets of Africa/Middle East, Latin America and Asia (excluding Japan). In Cosmetics and Toiletries, as in all of its sectors, Henkel put the focus on its top brands. Obviously a successful strategy, its top 10 Cosmetics and Toiletries brands generated 90% of the category’s sales.

R&D plays a huge role at Henkel, and the company delivered a number of innovative launches, which served to improve market share in several categories. Major R&D efforts included: the use of treatment oils in a hair colorant offering, which helped to rebuild the hair structure and reduce split ends; development of a body wash formulation that not only cleans but prevents against body odor for up to 18 hours; and a development for hair gels that provides extreme hold.

Gliss Kur Ultimate Repair, a product range created for damaged and dry hair, launched globally in 2011, became the most successful launch in the brand’s history—within six months. Due to its efforts in R&D and its resultant innovations such as this, Henkel says the Cosmetics and Toiletries business sector continued on a positive revenue track to outperform a predominantly declining market.

In general, hair care performed well particularly in response to innovations in the Schwarzkopf and Syoss brands, the latter with its Beauty Elixir Absolute Oil. Henkel’s hair colorants business grew to record levels thanks to innovations such as Syoss Mixing Colors, a product with two harmonized shades for self-mixing, and Palette Mousse Color, the first foam colorant in Europe that mixes in a shaker.
The Hair Salon business also increased sales, due in part to innovative launches including Schwarzkopf Professional’s first hair care series designed for men. Bonacure Oil Miracle also generated healthy growth momentum.

Body Care was boosted with new entries from Fa, Dial and Right Guard brands. With Fa, the launch of NutriSkin increased Henkel’s market shares in Europe.

In Skin Care the development of innovative anti-aging products was at the root of growth, with products including Dr. Caspari Hormoderm, the first care product from Diadermine claiming to counter the effects of menopause on the skin aging process.

Looking ahead, Henkel says it will make major investments in production facilities for the manufacture of innovative products for the Cosmetics/Toiletries business. It also plans to continue on its strong sustainability path. In April, Henkel was named one of the “World’s Most Ethical Companies” by the U.S. Ethisphere Institute.

In the second quarter, things were looking better than ever, with Henkel reporting a 9.9% increase in net income and a 6.4% gain in sales, and raising its growth outlook for 2012. Company sales came in at $5.4 billion. The Cosmetics/Toiletries division reported a 4.5% sales increase to about $1.2 billion. All regions contributed to the sector’s growth, with emerging markets in the lead.

Beauty Sales: $4.3 billion (cosmetics and toiletries)
Corporate Sales: $20 billion

Spring Water, Dial’s No. 1 Women/All-Family body wash, flows in showers everywhere.

Major Beauty Brands/Products: Beauty and personal care brands including Schwarzkopf, Schwarzkopf Professional, Indola Clynol, Country Colors, Natural & Easy, Antica Erboresiteria, Schauma, Seborin, Citré Shine, got2b, Poly Swing, Taft, Dep, L.A. Looks, La Toja, Bac, Coast, Dial, Tone, Dry Idea, Fa, La Toja, Right Guard, Soft & Dri, Tone, Diadermine, Erboristeria, Theramed, Scorpio.

New Products: Schwarzkopf Perfect Mousse, Osis Styling Powder, Right Guard Total Defense 5, Fa Active Pearls series, Dial NutriSkin series.

Comments: Henkel experienced an excellent year in 2010. Corporate sales were up 11% over the previous year to $20 billion, while Cosmetics & Toiletries—which accounted for 22% of total sales—continued on its growth path, expanding by 4.8% to $4.3 billion. The Cosmetics & Toiletries segment achieved 71% of its sales with its three biggest brands: Schwarzkopf, Dial (in North America) and Fa. According to Henkel, the sector’s superior performance in relevant markets sets the stage for further market expansions.

From a regional perspective, Cosmetics & Toiletries remained on a growth trajectory, especially in Western Europe, with a strong increase in sales particularly in Germany. Sales in the emerging markets also expanded, with double-digit growth rates achieved in Africa/Middle East, Latin America and Eastern Europe. By contrast, sales in North America declined.

Growth in the Hair Cosmetics business was particularly strong, primarily due to the launch of several innovations in the hair care, colorants and hair styling segments. The Syoss brand expanded to new markets and categories; in particular, Perfect Mousse drove growth in the colorants segment. Henkel’s Body Care business achieved success thanks to new innovations and new product launches under its core brands. The Fa brand launched the Active Pearls series. In North America, one of the region’s most successful body care innovations of 2010 was launched in the form of the Dial NutriSkin series. In order to further develop the global market for men’s products, Henkel also launched its U.S. brand Right Guard in Germany and Eastern Europe.

Focus in Skin Care was on the development of anti-aging products. The introduction of the new sub-line Novagen under the Diadermine umbrella brand boosted brand results in the category. The Hair Salon business also grew, extending its position, according to Henkel, as the No. 3 global player. The successful relaunch of the ammonia-free colorant, the Essensity brand introduced a new line of hair care and styling products.

In March of 2011, Henkel was once again, for the fourth year in a row, included in the list of the “World’s Most Ethical Companies,” by the U.S. Ethisphere Institute.

In the first six months of fiscal 2011, Henkel again increased sales over the prior-year period by 5.1% to $11.2 billion. Cosmetics & Toiletries continued on a successful track. Second quarter sales reached $1.3 billion almost 2%, higher than the prior-year quarter.

Beauty Sales: $4.3 billion
Corporate Sales: $19 billion

Major Products: Hair, skin and body products sold under brands including Schwarzkopf, Schwarzkopf Professional, Indola, Diadem, Country Colors, Natural & Easy, got2b, Taft, Dep, L.A. Looks, Zero Frizz, Smooth ’n Shine, Barnängen, Coast, Dial, Tone, Dry Idea, Fa, LaToja, Right Guard, Soft & Dri, Aok, Diadermine,Erboristeria, Denivot, Vademecum.

New Products: Schwarzkopf Essential Color; Syoss professional hair products; Taft Maxx Power Styling Gel; Fa Cream & Oil series; Dial Antioxidant body wash and bar soap; Brillance Intense Couleur.

Comments: Corporate sales fell almost 4% at Henkel last year, but still remained sizable at $19 billion. Cosmetics and toiletries accounted for 22% of sales. By region, Western Europe remained on top, followed closely by what the company terms growth regions (Eastern Europe, Africa/Middle East, Latin America, Asia excluding Japan). Sales dropped a near negligible .2% for Cosmetics & Toiletries, to $4.3 billion.

Skin care accounted for 35% of sales, followed by hair cosmetics and salon products, 32%; body care, 22%; and oral care, 11%. The primary reason for the decline in sales was the hard-hit salon business, as consumers stayed away from hair salons and went the DIY route. Despite the difficulties, Henkel managed to expand share and retain its No. 3 position in the global hair salon market.

Innovative products launched in 2009 included: Schwarzkopf Essential Color, Henkel’s first 100% permanent hair colorant without ammonia and with nature-based ingredients such as lychee and white tea; Syoss, which took off with professional hair care at an affordable price (which Henkel says was Europe’s most successful launch in the hair care sector in 2009); and Dial Anti-Ox body wash with cranberries and anti-oxidant pearls (which Henkel claims was the most successful body wash launch in the U.S).

In the Skin Care business, the introduction of Diadermine’s Dr. Caspari Method Dermo-Ident treatment contributed to the brand’s growth in the anti-aging segment. The Chinese children’s skin care series Haiermian exhibited double-digit percentage sales growth.

Henkel notes that its core markets in Western Europe and North America experienced a decline overall in the year, particularly with respect to retail hair cosmetics. Like other beauty companies, however, due to restructuring, Henkel succeeded in generating disproportionate growth and in achieving significant market share increases. The company substantially expanded its already strong market positions in Western Europe on the back of positive developments in hair cosmetics and body care. In North America, it improved its position in the styling and body care segments.

The markets in Eastern Europe, the Africa/Middle East region and Asia-Pacific continued to exhibit above-average growth, aiding disproportionate expansion in these regions, and allowing a significant gain in market share.

Henkel reveled in a healthy start in 2010, as first-quarter sales rose 7.8% to $4.8 billion.

In the second quarter, Cosmetics/Toiletries posted strong organic sales growth of 5% to $1.2 billion, significantly outperforming the relevant markets and continuing the successful trend of recent quarters.

In June, for the second year in a row, U.S. retail giant Walmart selected Henkel to receive the Walmart Sustainability Award.

In August, Bradley A. Casper, president and chief executive officer of Henkel Consumer Goods, Inc., announced he would be leaving the company to pursue other interests and opportunities.

Beauty Sales: $4.4 billion
Corporate Sales: $20.7 billion

New Products: Taft Powder with Cashmere Touch, Bonde Me, got2b magnetik styling gel, Dial Antioxidant Body Wash with Cranberry & Antioxidant Pearls, Dial Yogurt Body Wash.

Comments: Henkel’s corporate sales in 2008 rose 8.1% to $20.7 billion. Cosmetics and toiletries hit $4.4 billion, a gain of 1.5% over 2007 results. According to Kasper Rorsted, chief executive officer, business was more difficult in North America and Western Europe than in previous years, while in Eastern Europe, the Middle East, Africa, Latin America and Asia, the company continued to post strong growth in both sales and profits.

Henkel’s Dial for Men Magnetic Attraction Enhancing Body Wash is the first-ever pheromoneinfused body wash.

In cosmetics and toiletries, hair cosmetics and salon products represent 33% of Henkel’s sales in this sector, followed by skin care (30%), body care (26%) and oral care (11%).

In regard to R&D, Henkel’s expenditures in 2008 were approximately $639 million with cosmetics and toiletries accounting for 15% of the total. In January 2009, Phenion GmbH—a Düsseldorf-based firm that had operated as an independent department within Henkel’s R&D unit of cosmetics/toiletries business—became part of Henkel Group.

Henkel remains committed to being green. Between 2004 and 2008, the company’s energy consumption was down 11%, waste was down 30% and water consumption dropped 35%.

There were some changes in Henkel’s U.S.-based operations at the close of 2008. Dial Corp. moved into its new North American Consumer Products facility, which houses 800 Henkel employees, including R&D and administrative staff.

In the second quarter of 2009, Henkel reported a positive trend, achieving sales of an estimated $4.5 billion, though 5% less than in the prior-year period. The Cosmetics/Toiletries segment was able to successfully continue its positive trend with organic sales growth of 3.5%. Thus, the company says that this business sector significantly outperformed its relevant markets, which exhibited negative development overall in the current difficult economic environment. Growth remained strong, particularly in the regions of Eastern Europe, Asia and Latin America; growth in Western Europe also increased. The Hair Cosmetics segment continued to perform very well, as did the Hair Care and Colorants businesses, due especially to contributions from the new brand Syoss, the new Gliss line Asia Straight and the new Schauma Shampoo Hairactive for Men. In the Body Care segment, the Dial brand in the U.S. continued to do well, as did the Fa brand, in Europe. In the Skin Care segment, the focus was on the launch of the new Diadermine series Dr. Caspari. Henkel’s Hair Salon segment significantly outperformed its market.

Beauty Sales: $4.4 billion
Corporate Sales: $19.3 billion

Products/Brands: Shampoos and conditioners, hair colorants, shower gels and bath products, skin care products, dental care and hair salon products, including brands such as Schwarzkopf, Fa, Right Guard, Dial, Gliss, Igora, Gliss Kur, Schauma, Taft and Diadermine.

New Products: Activ Dr. Hoting, Got2b glued, Gliss Kur Oil Nutritive, Schuama Kiwi Glanz, Drei Wetter Taft Sensitive, Fa Naturals shower gel, Fa Foam Soap, Dial Yogurt Hand Wash.

Comments: In 2007, sales of Henkel’s cosmetics and toiletries rose 3.7% to $4.4 billion with organic growth of 5.8%. Cosmetics/toiletries comprised 23% of sales. According to the company, business in Eastern Europe, Africa/Middle East, Latin America and Asia all posted above average growth. Incremental recovery was noted in Western European markets, boosted by developments in hair cosmetics and body care, and in North America, where development of the Right Guard brands portfolio was said to be instrumental in strengthening the company’s position. During the fiscal year, Henkel sold its Morris Profumi fine fragrance business to focus on its key cosmetic and personal care offerings, including Schwarzkopf, Fa and Dial. Kasper Rorsted became CEO, replacing Ulrich Lehner.

Gliss Kur is a top performer for Henkel.

Innovation was key in 2007, with what Henkel refers to as its “innovative offensive.” Nature, Anti-aging and Men were determined to be its three key targets. Successful innovations in 2007 included the body care series Fa Natural & Pure and Fa Natural & Soft, and its anti-aging skin care product Diadermine Age ExCellium.

According to Henkel, business in Western Europe grew substantially faster than the market. In Eastern Europe, Henkel continued its strong growth performance with a double-digit percentage increase in revenues. “Appreciable growth” was achieved in the Middle East and in Latin America. Sales in North America reflected the expansion of Dial, according to the company.

By product group, Henkel recorded a substantial increase in sales and market share to new record levels. In hair products, performance was driven by top colorant brands, including Palette and Brilliance. Also, Men Perfect, a new men’s color line from Schwarzkopf, achieved good results. In body care, Dial and Fa successfully introduced products such as Fa Naturals shower gel and deodorant complementing the established yogurt range in Europe. Dial also increased sales with a new yogurt variant as well as with Dial for Men. Henkel’s skin care business was boosted by its main brand, Diadermine.

Henkel has continued its leadership in the sustainability area, winning awards for corporate and social responsibility. The company was recently listed on the Dow Jones Sustainability World Index, and the list of “World’s Most Ethical Companies.”

Henkel said that it expects its cosmetics market to expand by about 2% in 2008, with growth driven by North America and Eastern Europe.