This article first appeared on GuruFocus .
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Organic Sales Growth:1.7% on group level.
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Acquisitions:Five acquisitions with combined annual sales of around EUR1.6 billion; three transactions closed.
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Share Buyback Program:EUR1 billion completed by end of March.
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Adjusted EBIT Margin Guidance:14.5% to 16% for full year 2026.
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Adjusted EPS Growth Guidance:Low to high single-digit percentage range for full year 2026.
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Adhesive Technologies Sales:EUR2.6 billion with 1.7% organic sales growth.
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Consumer Brands Sales:EUR2.3 billion with 1.8% organic sales growth.
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Top 10 Brands Organic Sales Growth:Around 5% in Q1.
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Regional Performance:Europe sales down 3.4%; Asia Pacific organic sales growth of 10.3%; India, Middle East, Africa growth of 12.8%.
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Currency Headwinds:Minus-5% impact due to weakened dollar and related currencies.
Release Date: May 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Henkel AG & Co KGaA ( HELKF ) reported good organic sales growth of 1.7% in Q1 2026, supported by both business units.
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The company successfully completed a EUR1 billion share buyback program by the end of March 2026.
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Henkel AG & Co KGaA ( HELKF ) made strong progress in its M&A strategy, closing three out of five acquisitions, expected to add annual sales of around EUR1.6 billion.
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The company's top 10 brands delivered above-average organic sales growth of around 5% in Q1 2026.
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Henkel AG & Co KGaA ( HELKF ) maintained its full-year 2026 guidance, expecting organic sales growth of 1% to 3% and an adjusted EBIT margin of 14.5% to 16%.
Negative Points
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Henkel AG & Co KGaA ( HELKF ) faced a strong FX headwind of minus-5% in Q1 2026, mainly due to a weakened dollar.
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Sales in Europe were down 3.4% year-on-year, reflecting weaker business performance in both business units.
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The company experienced muted demand in the Adhesive Technologies segment, particularly in the automotive market.
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Henkel AG & Co KGaA ( HELKF ) is dealing with high single-digit percentage inflation in commodity costs due to geopolitical tensions.
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The Consumer Brands segment faced intense competitive pressure, particularly in the Laundry & Home Care market.
Q & A Highlights
Q: Can you quantify the impact of forward buying effects in Adhesive Technologies on Q1 organic sales growth? Also, how do you plan to offset high single-digit percentage inflation in commodity costs while maintaining margin guidance? A: Forward buying effects contributed roughly 80 basis points to our organic sales growth in Q1, particularly in Packaging & Consumer Goods and more in Asia Pacific. To offset inflation, we are implementing supplier renegotiations, pricing actions, and intensified cost management. We expect a balance of positive pricing and volume for the full year. (Carsten Knobel, CEO; Marco Swoboda, CFO)
Q: Could you discuss the slowdown in the IMEA region compared to Q4 last year and any impact on your Middle East business? A: Despite the crisis, IMEA showed double-digit growth, driven by strong performances in India and Turkey. Adhesive Technologies and Consumer Brands both contributed to this growth, with Mobility & Electronics and Packaging & Consumer Goods showing double-digit growth rates. (Carsten Knobel, CEO)
Q: How are you approaching pricing actions in the consumer business, and are there any upcoming innovations to support this? A: Pricing in the consumer business was positive in Q1, supported by specific pricing initiatives and strong launches. We constantly evaluate pricing opportunities aligned with market conditions and recent input cost dynamics. (Carsten Knobel, CEO)
Q: Are you concerned about consumers downtrading to private label brands due to inflationary trends? A: Consumer sentiment has weakened, particularly in the laundry market. However, our focus on innovations and strong brand performance, especially in Hair, helps us maintain competitiveness. Our strategy includes expanding our portfolio with acquisitions like Not Your Mother's and Olaplex. (Carsten Knobel, CEO)
Q: Could you provide more color on the recent developments in the laundry segment and clarify the pricing dynamics in hair care? A: Laundry & Home Care showed slightly positive development despite challenges. Hair care continued strong growth, driven by both consumer and professional segments, with innovations like Schwarzkopf's Creme Supreme contributing significantly. Pricing in hair care was not down globally; it was specific to the IMEA region. (Carsten Knobel, CEO)
Q: Was there any pre-buying dynamic in the first quarter for HCB, and how do you see the second quarter developing given tougher comps? A: Pre-buying was mainly observed in Adhesive Technologies, not significantly in HCB. We expect consumer sentiment to remain subdued and the market environment volatile, but our guidance remains unchanged. (Carsten Knobel, CEO; Marco Swoboda, CFO)
Q: Can you provide more details on hair care growth by region and the impact of new product launches? A: Hair care showed strong growth across regions, with significant contributions from styling and colorants. Innovations like Creme Supreme played a key role. We don't quantify the exact impact of innovations separately. (Carsten Knobel, CEO)
Q: Regarding Adhesives, do you expect organic sales growth to step up in Q2 versus Q1, considering pre-buying and working day impacts? Also, how do raw material costs impact Adhesives versus Consumer Brands? A: We expect a positive working day effect in Q2, but it's too early to predict net impacts. Raw material cost headwinds are more skewed towards Adhesive Technologies, with two-thirds of the impact. (Marco Swoboda, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
