Henkel 2023 Report Analysis

idk where this is from

Sales

• sales -3.9%
• organic sales +4.2%
  • from World Show Slides: +9.6% Price, -5.2% volume
• due to selling Russian subsidiary → no more sales in Russia

Operating Profit

• +11%

What is 1% Corporate Sales

• happens curing consolidation

Statements

Balance Sheet

• 2/3 are non-current assets, especially important Goodwill
• lots of cash, receivables and inventory
• 2/3 equity → mostly retained earnings
  • not just retained earnings of last year
• Provisions

Profit and Loss Statement

• sold less / earned more → less pieces sold at a higher price → higher margin
• 2 Billion EBIT
• negative financial result
• Income before tax → tax statement of each subsidiary
  • 29.1% tax rate above average of Austria 24%

Cash Flow Statement

• investing activities negative
• investments in another subsidiary and more assets
  • investments should equal depreciation
• 771 Million payed in dividends
• earned from operations, spent on investments and paying loans and investors → healthy

Statement Notes

• Profit by Business Unit Statement
  • Adhesive vs Consumer Brands
  • Adhesive has higher profit
• Profit by Geography Statement
• is it national profit or IFRS profit? → IFRS here
• scope of consolidation → who is in the group or not?
  • more than 50% shares or if the parent otherwise is control
  • 14 additions, 9 mergers, 9 disposals
• divestments → information on Russia → Henkel has option of buying back the business
• currency rates used in calculations
• Accounting estimates
• useful life for depreciation → Depreciation