WWD.com/beauty-industry-news/financial/henkel-q1-net-rises-13-6924004/
government-trade
government-trade

Henkel Q1 Net Rises 13%

Growth in the firm's laundry, home care and beauty care divisions offset a slightly diminished performance by its adhesives sector.

BERLIN — Henkel AG saw its first-quarter adjusted net income for the period advance 13 percent to 427 million euros, or $563.9 million, with growth in the firm’s laundry/home care and beauty care divisions countering a slightly diminished performance by its adhesives sector.
 
The Düsseldorf-based company saw its adjusted operating profit for the quarter grow 8.9 percent to 600 million euros, or $792.4 million. The adjusted figure accounts for one-time charges/gains, and restructuring charges.

All dollar figures are calculated at average exchange rates for the three month period ended March 31.

 

RELATED STORY: Henkel Outlines Strategy Through 2016 >>

Group sales for the quarter increased 0.6 percent to 4.03 billion euros, or $5.32 billion. In organic terms, excluding the impact of foreign exchange and acquisitions and divestments, sales rose 2.5 percent.


Henkel’s beauty care division, which includes brands such as Schwarzkopf, Dial and Fa, registered a 3 percent rise in operating profits to 124 million euros or $163.8 million, and a sales uptick of 1.4 percent to 873 million euros, or $1.15 billion, amounting to an increase of 4 percent organically. Growth was driven by emerging markets, in particular China, where Henkel has concentrated expansion efforts. Both Asia and the Africa/Middle East regions turned in double-digit growth, while Western Europe was boosted by Germany, which balanced sales lags in Southern Europe.  First-quarter sales growth in North America was solid, the company said.

 

RELATED CONTENT: WWD Earnings Tracker >>

Looking ahead to the remainder of fiscal year 2013, Henkel chief executive officer Kasper Rorsted warned that the company expects “the global economic environment to remain difficult” but it anticipates that industrial demand will improve in the second half of the year.