Henkel delivers solid performance in second quarter

“In a persistently challenging market environment, Henkel delivered overall a solid performance in the second quarter. We again achieved double-digit growth for both sales and earnings. The main drivers were solid organic sales growth, last year’s acquisitions and, above all, the strong US dollar. Organic sales in emerging markets were strong, once again making an above-average contribution to growth,” said Henkel CEO Kasper Rorsted.

In the second quarter of 2015, sales rose to 4695 million euros, increasing by 13.5 percent, once again in double-digits. The Laundry & Home Care business unit recorded solid organic sales growth of 4.3 percent. In the Beauty Care business unit a positive increase in organic sales of 1.9 percent was achieved. The Adhesive Technologies business unit also posted a positive improvement in organic sales of 1.7 percent.

Reported operating profit (EBIT) grew by 21.4 percent, from 589 million euros to 715 million euros. Adjusted net income for the quarter, after deducting non-controlling interests, increased by 11.8 percent from 499 million euros to 558 million euros. Reported net income for the quarter grew by 19.1 percent from 446 million euros to 531 million euros.

The Laundry & Home Care business unit once again delivered profitable growth in the second quarter of 2015. The solid organic sales growth was mainly driven by the performance in the emerging markets, which again showed a very strong development. Africa/Middle East recorded solid growth. 

Adjusted operating profit of the Beauty Care business unit rose significantly versus the prior-year quarter, by 14.7 percent to 166 million euros. Adjusted return on sales improved by 0.3 percentage points to reach 16.5 percent for the first time. Reported operating profit grew by 17.6 percent to 158 million euros. The business unit’s successful development in the emerging markets continued with very strong organic sales growth Africa/Middle East recorded positive organic sales growth

The Adjusted operating profit of Adhesive Technologies business unit increased by 9.9 percent to 398 million euros. The emerging markets showed a solid organic sales growth rate. Africa/Middle East recorded very strong growth.

Henkel’s sales in Africa/Middle East rose from 287 million euros to 342 million euros. Although the political situation in some countries continued to affect growth, organic sales increased by 4.4 percent. In the emerging markets of Eastern Europe, Africa/Middle East, Latin America and Asia (excluding Japan), sales grew significantly, by 11.0 percent to 2,047 million euros. Driven by all business units, organic sales grew by 5.1 percent and again made an above-average contribution to the organic growth of the Henkel Group. 

Outlook for the Henkel Group 2015

Henkel continues to expect organic sales growth of 3 to 5 percent in the fiscal year 2015. Henkel expects that the Adhesive Technologies and Laundry & Home Care business units will each generate organic sales growth within this range. In the Beauty Care business unit, Henkel expects growth of approximately 2 percent. As before, Henkel expects a stable development in the share of sales from emerging markets. Compared to the 2014 figures, Henkel expects adjusted return on sales (EBIT) to increase to around 16 percent and an increase in adjusted earnings per preferred share of approximately 10 percent.