Tuesday, August 16, 2016
Henkel continues successful development in an increasingly challenging environment.
“Henkel delivered a strong business performance in the second quarter. We generated solid organic sales growth, supported by a strong development in the emerging markets and a positive development in the mature markets. We were also able to significantly increase both earnings and profitability. Adjusted earnings per preferred share grew by 8.5 percent to 1.40 euros and adjusted return on sales rose to 17.6 percent, representing new record levels for Henkel. The successful development of Henkel was driven by all three business units,” said Henkel CEO Hans Van Bylen. “I would like to thank our global team which contributed to the strong performance in the second quarter.” Bylen added further.
“We are also very excited about the acquisition of The Sun Products Corporation which we agreed on in the second quarter. This will be a step-change for our position in North America, one of the most important regions for Henkel worldwide. Upon closing of this transaction, we will reach the No. 2 position in the US laundry care market.”
Commenting on the current fiscal year, Van Bylen concluded: “We are facing a market environment which is becoming increasingly challenging, with moderate global economic growth, slowing growth dynamics, high uncertainties in the markets and unfavorable foreign exchange developments. We are committed to reaching our ambitious targets and will focus on leveraging our innovation capabilities, our strong brands and our leading market positions.”
• Sales at 4,654 million euros: organic +3.2% (nominal: -0.9%)
• Emerging markets sales growth: organic +6.1%
• Operating profit*: +6.6% to 819 million euros
• Earnings per preferred share* (EPS): +8.5% to 1.40 euros
• Very strong EBIT margin* improvement: +120 basis points to 17.6%
• Guidance for full year EBIT margin* raised
Tags: business units, challenging environment, emerging markets, Henkel, second quarter, strong business performance, successful development
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