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Henkel Net Climbs 8.4% in Q1

The German consumer goods firm reported sales were impacted by foreign exchange rates.

BERLIN — Henkel AG reported first-quarter adjusted net income climbed 8.4 percent to 452 million euros, or $619.3 million, driven by strong sales in emerging markets, particularly China and Latin America.

However, Henkel chief executive officer Kasper Rorsted warned that the negative foreign exchange effects that dented the consumer goods firm’s sales in Q1 were unlikely to improve in the months ahead.  

Revenues at Düsseldorf-based Henkel dipped 2.6 percent to 3.92 billion euros, or $5.37 billion. Adjusted operating profit rose 3.3 percent to 619 million euros, or $848.2 million for the period.

Dollar figures are calculated at average exchange rates for the three months ended March 31.


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Henkel’s beauty care division, which includes brands such as Schwarzkopf, Dial and Fa, saw sales drop 2 percent to 856 million euros, or $1.17 billion.

Rorsted cited concerns about political unrest in the Eastern European region, which represents one of the company’s larger markets.  

“The economic environment will remain challenging with the latest developments in Eastern Europe creating additional uncertainty in the markets,” said Rorsted.  “A high degree of agility and flexibility will remain key to success. We will therefore continue to simplify and accelerate our processes and structures.”

Despite the challenging economic outlook, Henkel confirmed its 2014 fiscal year outlook, saying it anticipates organic sales growth of 3 to 5 percent, and an adjusted EBIT margin of around 15.5 percent.