Lockdown hits beauty sales at Hemel consumer goods giant

The enforced closure of hair and beauty salons during the UK lockdown left sales of Henkel’s beauty products for professionals in the UK down 32.4 per cent.

However, sales of beauty care products through retail outlets to consumers rose 3.1 per cent.

The Hemel office in Wood End Lane is Henkel’s UK and Ireland head office and, as well as beauty care, is focused on industrial adhesives, consumer adhesives and laundry and home care.

A spokesperson said: “Organic sales growth to end of September is -5.9 per cent for total UK and Ireland.

“This is due to the pandemic.

“Our beauty care professional division, which is the part of the business that works with hair salons, was – of course – very deeply affected by the various lockdowns.

“It was down -32.4 per cent as a result.

“Similarly, industrial adhesives was down -19.9 per cent due to a reduction in demand across all sectors and in particular, the automotive sector.

“However, there were some outstanding performances in consumer facing divisions, where lockdowns had some positive benefits.”

For instance, sales of consumer adhesives rose by 3.5 per cent as people spending more time at home during lockdown were able to give more of their time to DIY home improvement.

Its laundry and homecare division was up 17.7 per cent.

This increase was mainly due to long-term strategic decisions by the company, but was also impacted by people spending more time at home, using cleaning products.

The figures are a contrast with last year when Henkel was able to announce a record dividend payout to shareholders.

Its dividend payout rose by 3.4 per cent to 1.85 euro per preferred share and 1.83 euros per ordinary share - the highest dividend payment made by the 140-year-old company.

Now it says its adjusted earnings per preferred share are expected to decline in the range between 18 and 22 per cent.