Henkel’s ceo Kasper Rorsted has said that 2009 is a year to be “realistic but also optimistic” as he addressed the press at the company’s Annual Report 2008 meeting in Henkel’s home city of Dusseldorf today.
Figures show that the company’s sales increased by 8.1% to €14.13bn during 2008 and this increase was largely attributed to Henkel’s acquisition of the National Starch business in April last year. Organic sales growth stood at exactly 3% with all sectors contributing to this but with the C&T division performing particularly well.
Henkel’s cosmetics and toiletries business (including the Schwarzkopf, Fa and Dial brands) totalled €3.01bn in 2008, a rise of 1.5% on the previous year. Organic growth in this sector stood at 4.7%. Rorsted said this was due to huge innovation in the hair care segment, including the successful launch of the Coloriste brand and the well received relaunch of the Brillance line.
“Despite the difficult economic environment, we sustained a very good position in 2008 and once again all of our business sectors were able to outperform in their respective markets, with business in the emerging markets making a particularly strong contribution,” said Rorsted.
Hans Van Bylen, executive vice president cosmetics and toiletries at Henkel, added: “This year we are focusing our efforts on innovation in particular as we recognise that this is a key factor in keeping custom during these difficult economic times. Hopefully the price of raw materials will see a further decline during the rest of 2009 and this will also have a positive impact.”
However, there were some difficult questions posed of the management board about possible job losses in 2009. As well as two German production plants closing, 500 workers may be switched to short-term contracts. Rorsted commented: “We must strike a balance and keep Henkel viable and healthy in the long-term. Recent redundancies are an unavoidable side effect of the recession but we must look to the long-term future of the company and make unpopular decisions now.”