(Boursier.com) — Henkel today announced its intention to merge its Laundry & Home Care (detergents and cleaning products) and Beauty Care (cosmetics) branches into a single business unit: Henkel Consumer Brands. Preparation for the integration process will begin immediately and aims to have the new organization in place by early 2023 at the latest. With this new business unit, Henkel will build a multi-category growth platform, combining its brands and major businesses under one roof, including many emblematic brands such as Persil (Le Chat in France) and Schwarzkopf, including the business aimed at hairdressing professionals.
“We will join forces from our consumer goods businesses to create a strong and integrated business unit that will serve as the foundation for profitable growth. The integrated consumer brands business will bring significant benefits to Henkel, our shareholders, to our customers and our teams and will be well positioned to actively shape Henkel’s future in a very dynamic industry,” said Carsten Knobel, Chairman of Henkel’s Management Board.
“We are creating a multi-category platform with approximately €10 billion in revenue. This will provide a broader base to further optimize and shape our portfolio towards a higher growth and margin profile. synergies and efficiencies, which will allow us to free up resources which will be partly used for targeted investments in our strategic priorities, such as innovation, sustainability and digital. more attractive, offering bigger roles and growth opportunities in an exciting industry.
In summary: I am convinced that this merger will allow us to step up a gear in the realization of our targeted growth program.”
The merger is designed to drive growth and profitability for the consumer and enterprise business. This is also reflected in Henkel’s new medium to long-term financial ambition: the company is now targeting organic sales growth of 3-4%, an adjusted EBIT margin of around 16% and growth in adjusted earnings per share. preference in the upper half of a single-digit range (at constant exchange rates, including mergers and acquisitions).
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