BERLIN — Registering a 9.9 percent increase in net income and a 6.4 percent gain in sales in the second quarter, Henkel AG & Co. raised itsgrowth outlook for adjusted earnings per preferred share from 10 percent toaround 15 percent in 2012.
The Düsseldorf-based consumer goods and adhesives company continues to expect organic sales growth of between 3 percent and 5 percent and an adjusted return of sales (earnings before interest and taxes margin) of 14 percent for the year.
Second-quarter net profits were 412 million euros, or $529.5 million, while adjusted net income gained 22.4 percent to 431 million euros, or $553.9 million.
Operating profit (EBIT) rose 8.5 percent to 583 million euros, or $749.2 million. Allowing for one-time gains, one-time charges and restructuring charges, adjusted EBIT advanced 18.6 percent.
Company sales were 4.21 billion euros, or $5.41 billion. On an organic basis, which excludes the effects of currency exchange and acquisitions and divestments, revenues grew 4 percent.
All dollar figures are converted from the euro at the average exchange rate for the period to which they refer.
Henkel’s cosmetics and toiletries division, which includes brands Dial, Fa and Schwarzkopf, reported a 4.5 percent sales increase to 921 million euros, or $1.18 billion. Organic revenues rose 2.8 percent. The branch’s EBIT slipped 6.3 percent to 131 million euros, or $168.4 million, compared to 140 million euros, or $201.5 million, in the same prior-year period. But Henkel pointed out the 2011 figure included a one-time gain from the disposal of its branded consumer goods business in India. Adjusted EBIT for the quarter rose 7.1 percent.
Henkel said all regions supported the division’s growth, with the most dynamic performance in the emerging markets. Africa and the Middle East combined and Asia (excluding Japan) posted double-digit gains, while sales in Eastern Europe and Latin America also progressed strongly. Despite adverse economic conditions, the mature markets of Western Europe generated solid sales, and the company said North American revenues were positive.
In the first half of 2012, Henkel’s net income gained 18.3 percent to 770 million euros, or $999.5 million, while EBIT rose 15.5 percent to 1.12 billion euros, or $1.46 billion. Sales grew 5.6 percent to 8.21 billion euros, or $10.66 billion.