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Henkel Q2 sales hit new high, solid organic development

Staff Writer | November 8, 2016
In the third quarter of 2016, Henkel’s sales reached a new high. Sales rose by 3.4 percent to 4,748 million euros. The sales performance was driven by the solid organic development as well as acquisitions.
Henkel   Sales rose by 3.4 percent
Organic sales growth – i.e. adjusted for foreign exchange and acquisitions/divestments – was at 2.8 percent. Adjusted for negative foreign exchange impact of 3.3 percent, sales increased by 6.7 percent.

Organic sales growth was driven by the solid performance of all business units. The Laundry & Home Care business unit recorded organic sales growth of 4.0 percent.

The Beauty Care business unit posted an improvement in organic sales of 2.6 percent.

The Adhesive Technologies business unit reported an increase in organic sales of 2.5 percent.

After allowing for one-time charges and gains and restructuring charges, adjusted operating profit (EBIT) rose by 7.6 percent from 778 million euros to 837 million euros. Reported operating profit grew by 16.4 percent from 666 million euros to 775 million euros.

Adjusted return on sales (EBIT margin) showed an increase of 0.7 percentage points to 17.6 percent. Reported return on sales rose from 14.5 percent to 16.3 percent.

Henkel’s financial result was at -15 million euros and, due to acquisitions, below the level of the prior-year quarter. The reported tax rate was at 23.2 percent; in the prior-year quarter it was at 24.6 percent.

Adjusted net income for the quarter after deducting non-controlling interests grew by 9.2 percent from 564 million euros to 616 million euros.

Reported net income for the quarter increased by 18.2 percent from 494 million euros to 584 million euros. After deducting 8 million euros attributable to non-controlling interests, quarterly net income amounted to 576 million euros (prior-year quarter: 484 million euros).

Adjusted earnings per preferred share (EPS) rose by 9.2 percent from 1.30 euros to 1.42 euros. Reported EPS increased from 1.12 euros to 1.33 euros.

Net working capital related to sales improved year on year by 0.8 percentage points to 5.2 percent.