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Henkel was founded in 1876. People around the world trust Henkel’s brands and technologies. In the fiscal year 2013, the company reported sales of 16.4 billion euros and operating profit of 2.5 billion euros (adjusted for one-time gains/charges and restructuring charges). The DAX-30 company has its headquarters in Düsseldorf, Germany. Henkel employs around 47,000 people worldwide, more than 80 percent of which work outside of Germany. Henkel is thus one of the most international German companies.
Laundry & Home Care has always played an important role for Henkel: The company’s success story started with a product from this business unit. The Laundry Care business includes not only heavy-duty and specialty detergents but also fabric softeners, laundry-performance enhancers and other fabric-care products. The Home Care portfolio includes hand- and automatic-dishwashing products, cleaners for bathroom and WC applications, and household, glass and specialty cleaners. We also offer air fresheners and insecticides for household applications in selected regions. In 2013, the Laundry & Home Care business unit generated sales of 4,580 million euros, which equals 28 percent of total company sales.
Products from the Beauty Care business unit are available worldwide. Beauty Care stands for brand-name products in the fields of hair colorants, hair styling, hair care and form, toiletries, skin care, oral hygiene as well as for one of the world’s leading suppliers of hair-salon products. In 2013, the business unit generated sales of 3,510 million euros, which equals 21 percent of total company sales.
The Adhesive Technologies business unit is the world market leader in adhesives, sealants and functional coatings for consumers, craftsmen and industrial applications. Henkel offers a multitude of applications to satisfy the needs of different target groups – consumers as well as craftsmen and industrial businesses. In 2013, the business unit generated sales of 8,117 million euros, which equals 50 percent of total company sales.
A global leader in brands and technologies – our vision gives us a sense of direction and destination. It captures our aspiration of being the best in everything we do. It is the basis for what we all stand for as one company. Our vision and our values guide the choices and decisions our employees make every day.
Our strategy is built on the foundation of our corporate values and will drive our successful development in the coming years in order to achieve our long-term vision for Henkel: to become a global leader in brands and technologies.
In order to steer the focus of the entire organization toward our strategy and ensure its successful implementation, we have defined four strategic priorities:
Outperform – Globalize – Simplify – Inspire.
The basis for our strategy was a detailed analysis of major long-term market trends. We identified three megatrends, which will affect our different businesses over the next years: consolidation, emerging markets and speed.
- Consolidation in our supplier, manufacturer and customer base as well as in our competitive environment will continue. Size will become a critical success factor in the future. Consequently, we need to grow our businesses.
- We expect the shift of growth from mature to emerging markets to continue. As a result, we need to expand our already strong footprint in these markets over the coming years.
- We anticipate highly dynamic market evolution, and faster decision-making by suppliers, customers and competitors. In addition, further digitalization will lead to changes in our market environment. We therefore need to continue simplifying our processes and increasing our operational excellence.
We have defined ambitious financial targets for our company. By 2016, Henkel aims to grow sales to 20 billion euros, of which 10 billion euros will come from emerging markets. For adjusted earnings per preferred share (EPS), Henkel targets a compound annual growth rate (CAGR) of 10 percent between now and 2016. These financial targets are based on organic growth, including continuous portfolio optimization, i.e. small and mid-sized acquisitions as well as divestment or discontinuation of nonstrategic activities. Potential major acquisitions or divestments are not built into our financial targets.