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Henkel delivers good Q2 performance despite significant negative currency effects
Date: 18-09-2018

“Driven by strong organic growth, Henkel delivered a good development in the second quarter despite significant negative currency effects and higher material prices. We increased quarterly sales to an all-time high, further improved our adjusted EBIT margin and achieved the highest quarterly adjusted earnings to date,” said Hans Van Bylen, CEO, Henkel. “Our Adhesive Technologies business unit delivered very strong organic growth, Laundry & Home Care reported good growth and the development of Beauty Care was also positive.” 

“We achieved organic sales growth across all regions, with a very strong performance in emerging markets and a good development in mature markets. Our North American consumer businesses returned to growth with service levels back to normal.”

“As in the first quarter, we were confronted with significant currency headwinds and increasing material prices in the second quarter. Currencies negatively impacted our reported sales with 6.1 per cent or about 310 million euros. Our operating profit and earnings per share were also affected by currencies. Excluding the impact of currency effects, we delivered a strong operational EPS increase of 7.7 per cent,” explained Bylen.

The company confirms its expectation for organic sales growth of 2 per cent to 4 per cent for the Henkel Group. Henkel now expects organic sales growth in the Adhesive Technologies business unit of 4 per cent to 5 per cent from previously 2 per cent to 4 per cent. In the Laundry & Home Care business unit Henkel continues to expect growth in the range of 2 per cent to 4 per cent. In the Beauty Care business unit Henkel confirms its expectation of positive organic sales growth of 0 per cent to 2 per cent.

For adjusted return on sales (EBIT), Henkel now anticipates an increase year on year to around 18 per cent from previously more than 17.5 per cent. All three business units are expected to contribute to this positive performance. Reflecting the development of currencies and material prices, Henkel now expects an increase of between 3 per cent and 6 per cent in adjusted earnings per preferred share from previously between 5 and 8 per cent.

“The outlook underlines our continued focus on sustainable profitable growth and we are committed to further drive the implementation of our strategic priorities,” said Bylen.

 

 
 
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