Henkel’s beauty business grows by a modest 1.4% in 2021
German consumer goods group Henkel, owner among others of Diadermine and Fa, reported a revenue of €20.1 billion for fiscal 2021, equivalent to a 7.8% rise. Over the same period, the group’s operating result increased by 4.2%, to €2.7 billion.
Henkel’s Beauty Care business, whose brand portfolio includes Schwarzkopf, N.A.E and Nature Box, generated a revenue of €3.67 billion, increasing by a modest 1.4%. In 2021, the group’s personal care and beauty division accounted for 18% of the Henkel’s total sales. The group also includes an adhesive technology division, which recorded sales for €9.64 billion in the period, and a household maintenance division, whose revenue was €6.05 billion.
In 2021, Henkel’s beauty care business was notably driven by the return to normal operations for hair salons. However, sales for the group’s mass-market cosmetics products were negatively affected by weaker demand for body care, a category whose sales had grown significantly in lockdown-blighted 2020. Adjusted EBIT for the Beauty Care division was €351 million, down from the €377 million recorded in 2020. This decline has been attributed to increased investment in marketing and advertising, as well as to a significant increase in raw material prices.
At the beginning of February, Henkel strengthened its portfolio of hair salon brands by acquiring Shiseido’s professional products business in the Asia-Pacific region. “The operation relates to high-end hair salon products generating a revenue of over €100 million in the 2021 financial year,” stated the group. Henkel is planning to become one of the main players in professional products in Asia-Pacific.
In 2022, Henkel will carry out a reorganisation of its corporate structure. The group will merge its Beauty Care and Laundry & Home Care divisions to create a new entity called Henkel Consumer Brands. Henkel wants to set up a multi-category platform for its entire consumer products business, which generates annual sales of approximately €10 billion.
Henkel has recently launched a new investment vehicle, Venture Fund II, endowing it with €150 million in finance, for investing in innovative business models.
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