1) Q3 Performance Overview
- Henkel reported a clear acceleration in top-line development with both business units achieving positive organic sales growth.
- Adhesive Technologies saw a 2.5% organic sales growth, driven by strong performance in Electronics and Industrials, while Consumer Brands achieved 0.4% organic growth, supported by positive volume development.
- North America stood out with good organic sales growth across both business units.
- The merger of Consumer Brands is nearing completion, expected to conclude by year-end, one year ahead of schedule.

2) Financial Results
- Total sales for Q3 amounted to EUR 5.1 billion, a 6.3% decline YoY, impacted by a 2.9% reduction from divestments and a 4.8% negative FX effect.
- Organic sales growth was 1.4%, with notable regional performance:
| Region | Organic Sales Growth | |----------------------|---------------------| | Asia Pacific | +4.9% | | North America | +2.3% | | Latin America | Below prior year | | Europe | -2% |
- Adhesive Technologies generated EUR 2.7 billion in sales, while Consumer Brands generated EUR 2.4 billion.

3) Challenges and Headwinds
- Consumer Brands faced a challenging market environment, particularly in Laundry & Home Care, leading to negative pricing developments primarily in Europe.
- The overall market sentiment has been weak, with consumers increasingly turning to private label products, especially in the Laundry segment.
- FX headwinds and the impact of divestments have also contributed to the decline in overall sales.

4) Strategic Initiatives and Innovations
- Henkel is focusing on customer-driven innovations in Adhesive Technologies, particularly in Electronics, which is expected to grow at a high single-digit rate due to trends like AI and sustainability.
- The company is investing heavily in its top brands, which now account for around 60% of sales, and plans to continue enhancing the remaining 40% through strategic portfolio management.
- New product launches, such as Persil Giant Discs and innovations in Hair Care, are expected to drive growth in Q4 and beyond.

5) Guidance and Outlook
- Full-year guidance remains unchanged, with expectations for adjusted EBIT margin and adjusted EPS growth to stay within current ranges.
- However, if economic conditions do not improve, organic sales growth may come in at the lower end of the guidance range.
- The company anticipates a stronger Q4, driven by easier comparables, increased promotional activities, and new product launches.

Bottom line: Henkel is navigating a challenging market environment but is strategically positioned for growth through innovation and brand investment. The completion of the Consumer Brands merger ahead of schedule and a focus on high-growth areas like Electronics and Hair Care provide a solid foundation for future performance, despite current headwinds.