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Henkel Profits Rise 16.7% in Q3

Company sales in the period declined due to exchange-rate effects.

BERLIN — Third-quarter net profits for Henkel AG & Co. rose 16.7 percent to 469 million euros, or $621.1 million.

 

Operating profits (EBIT) for the Düsseldorf-based consumer goods and adhesives firm increased 10.8 percent on-year to 649 million euros, or $859.5 million.

 

Henkel’s revenues dipped 2.6 percent to 4.18 billion euros, or $5.54 billion, impacted by foreign exchange rates. Organically, revenues grew 4.2 percent, with all activities of the company contributing and emerging markets generating 45 percent of sales. Dollar figures are converted at average exchange for the three-month period ended Sept. 30.

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EBIT for Henkel’s beauty care division, including the Fa, Dial, Schwarzkopf and Syoss brands, declined 1 percent to 132 million euros, or $174.8 million. The branch’s sales — which represented 21 percent of Henkel’s total revenues — retreated 2.4 percent to 886 million euros, or $1.17 billion. In organic terms, the division’s sales gained 3.1 percent.  

 

For the first nine months of 2013, Henkel’s adjusted net income rose 12.6 percent to 1.35 billion euros, or $1.78 billion. Adjusted operating profit was up 7.8 percent to 1.93 billion euros, or $2.5 billion. Sales were flat on-year at 12.5 billion euros, or $16.5 billion. Organically, revenues rose 3.6 percent.

 

Regarding the rest of 2013, Henkel chief executive officer Kasper Rorsted said in a statement: “The economic environment will remain difficult. Therefore, we will continue to adapt our processes and structures in order to further improve our flexibility and efficiency in this volatile market environment.”

 

The company reiterated its full-year forecast of organic sales growth between 3 percent and 5 percent, and raised its adjusted EBIT margin forecast to about 15 percent from around 14.5 percent.