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Henkel Sales Rise 3.2 Percent in Second Quarter

Henkel maintained a growth trend in the second quarter, with sales of its cosmetics and toiletries division rising by 3.2 percent to 769 million euros, or $1.04 billion at average exchange.

BERLIN — Henkel maintained a growth trend in the second quarter, with sales of its cosmetics and toiletries division rising by 3.2 percent to 769 million euros, or $1.04 billion at average exchange.

While organic sales growth rose by 4.3 percent, earnings before interest and taxes rose by 3 percent to 98 million euros, or $132.1 million. On a currency-adjusted basis, EBIT increased by 4.7 percent.

Henkel said its hair care business continued to grow, setting a new record in terms of its market positions within Europe. Key launches included Men Perfect, its first colorant specifically for men, and further rollouts of the trendy brand Got2b.

In body care, the Fa and Dial brands continued to perform strongly, with Dial achieving an “above-average increase in sales” in the U.S. due to a portfolio relaunch and a new product line called White Tea & Vitamin E.

In professional hair care, the hair care line Seah Hairspa was relaunched and BlondMe, its first hair care, color and styling line developed especially for blonde hair, was introduced.

Henkel group sales, which include its laundry and home care and adhesives businesses, rose 1.9 percent to 3.29 billion euros, or $4.43 billion. Group EBIT for the quarter was down 5.5 percent, or 3.7 percent on a currency adjusted basis, for the quarter, but was up by 1.2 percent, or 3.5 percent on a currency adjusted basis, for the first half of the year. Adjusted for one-time gains in the previous year and an increase in restructuring charges this year, Henkel said group EBIT rose by 6.4 percent to 345 million euros, or $465.1 million.

Henkel said that for the full year, “Thanks to successful developments in the first half year, we anticipate achieving an increase in organic sales of 4 percent to 5 percent for full fiscal 2007.” Operating profit, when adjusted for foreign exchange, is expected to increase in excess of organic sales growth.

This story first appeared in the August 3, 2007 issue of WWD.  Subscribe Today.