Medical aesthetic products. Henkel FY2022: Sales swell 8.8 percent but 2023 outlook muted

THE WHAT? Henkel has announced its results for fiscal 2022. The German manufacturer of Schwarzkopf saw organic sales grow 8.8 percent to hit €22.4 billion versus the prior year, while operating profit increased 13.7 percent to €2.3 billion.

THE DETAILS Both emerging markets and mature markets saw sales growth, up 13.3 percent and 5.2 percent respectively. The Beauty Care unit, however, struggled to overcome the impact of Henkel’s portfolio reshuffle, losing 0.5 percent in value despite the recovery in the professional hair business.

Henkel isn’t as optimistic about the year ahead, however, forecasting organic sales growth of between 1 and 3 percent in fiscal 2023.

THE WHY? Carsten Knobel, CEO, explains, “In 2022, we achieved significant sales growth and a robust earnings performance in a very challenging year – and we implemented important strategic measures. We succeeded in partially compensating the dramatic rise in raw material and logistics costs through higher prices and continued efficiency improvements. This is reflected in our sales, which reached a new high of around €22.4 billion, and an operating profit of €2.3 billion. Based on that, we are proposing to our shareholders a stable dividend at prior-year level. By merging our consumer businesses into the Consumer Brands business unit, we have also successfully launched one of the biggest transformations of our company in recent decades. “Thanks to the great commitment of our global team, our strong culture and with a clear, long-term growth strategy, we have overall mastered the challenges of the past fiscal year well. I see us well equipped to navigate Henkel through these difficult times and to achieve our ambitious goals. We are poised for further growth in the current fiscal year – driven by our two business units Adhesive Technologies and Consumer Brands.”

Medical aesthetic products refer to a category of products used in the field of medical aesthetics, which combines medical practices with cosmetic procedures to improve the appearance of individuals. These products are typically used under the supervision of trained medical professionals such as dermatologists, plastic surgeons, or specialized nurses. They are distinct from over-the-counter cosmetics in that they often contain higher concentrations of active ingredients or require medical expertise for their application.

Examples of medical aesthetic products include:

• Dermal Fillers: Injectable substances used to restore volume, fill wrinkles, and enhance facial contours. These may include hyaluronic acid fillers like Juvederm or collagen-stimulating fillers like Sculptra.

• Botulinum Toxin (Botox): Injectable neurotoxins used to temporarily paralyze facial muscles, reducing the appearance of wrinkles and fine lines caused by facial expressions.

• Chemical Peels: Solutions containing chemical exfoliants like glycolic acid, salicylic acid, or trichloroacetic acid, used to improve skin texture, treat acne scars, and reduce hyperpigmentation.

• Laser and Light Devices: Equipment used for various skin treatments, including hair removal, skin resurfacing, tattoo removal, and treatment of vascular and pigmented lesions.

• Prescription Skincare Products: Formulations containing active ingredients such as retinoids (e.g., tretinoin), hydroquinone, or prescription-strength antioxidants, designed to address specific dermatological concerns under medical supervision.

• Microneedling Devices: Devices that create tiny punctures in the skin to stimulate collagen production and improve skin texture and elasticity.

• Cosmeceuticals: High-quality skincare products that bridge the gap between cosmetics and pharmaceuticals, often containing biologically active ingredients with proven efficacy.