Henkel Q3 Results Miss Expectations as Pricing Pressures Mount
Henkel AG reported third-quarter results slightly below expectations on Thursday, as pricing trends in its Consumer division turned negative while the company focused on boosting volume growth.
The German consumer goods manufacturer recorded group sales growth of 1.4% for the quarter, falling short of the 1.9% analyst consensus. Volume growth, however, reached 1.5%, exceeding the 0.8% forecast, while pricing slipped 0.1% compared with expectations for a 1.1% gain.
Consumer Division Weakens as Volumes Rise but Prices Fall
Henkel’s Consumer division delivered organic sales growth of just 0.4%, below the 1.3% forecast. Volumes grew 0.9%, but pricing declined 0.6%, contrasting with analyst projections of a 1% increase. The result highlights the company’s shift toward volume-driven recovery after several quarters of price-led growth.
Adhesives Business Holds Steady
The Adhesives Technologies division performed broadly in line with expectations, reporting 2.5% organic sales growth versus a 2.6% consensus. Volumes advanced 2.0%, showing continued demand in industrial and electronics segments.
Within this division, Mobility & Electronics grew 5.9%, driven by double-digit expansion in Electronics, while Automotive declined. The Craftsmen, Construction & Professional business posted 2.2% growth, and Packaging & Consumer contracted by 1.1%.
Full-Year Outlook Narrowed to Lower End of Guidance
Following the third-quarter results, Henkel narrowed its 2025 full-year organic sales growth outlook to the lower end of its 1–2% range. The company maintained its operating margin target between 14.5% and 15.5% and reiterated expectations for constant-currency earnings per share (EPS) growth in the low to high single-digit range.
Segment Performance Overview
In the Consumer business, Laundry & Home Care sales fell 1.5%, primarily due to weakness in Europe, while the Hair segment delivered a solid 4.4% increase, helping offset broader pricing challenges.
Overall, Henkel’s third-quarter results reflect a mixed performance, with steady industrial demand but continued pressure on consumer pricing and regional margins.
