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Henkel Q3 Profits Jump 30.3%

The German company registered a 6.6 percent gain in sales.

BERLIN — Henkel AG & Co. said net profits in the third quarter jumped 30.3 percent to 409 million euros, or $511.7 million.

The Düsseldorf-based consumer goods and adhesives giant registered adjusted net profits up 17.2 percent to 429 million euros, or $536.8 million, after deducting for non-controlling interests.

Operating profits (EBIT) for the firm rose 29.8 percent to 586 million euros, or $733.2 million. Revenues in the three months ended Sept. 30 grew 6.6 percent to 4.29 billion euros, or $5.37 billion. In organic terms, the sales increase stood at 2.5 percent.


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Emerging markets — which include Eastern Europe, Africa and Latin America and Asia, excluding Japan — contributed 44 percent of the company’s revenues. They rose 10.1 percent to 1.89 billion euros, or $2.36 billion. Sales in North America grew 13 percent, and in Western Europe they inched up 0.1 percent.

Dollar figures are converted at average exchange for the period to which they refer.

Henkel’s beauty care division, which includes the Fa, Dial, Schwarzkopf, and Syoss brands, also posted growth, with sales increasing 5.6 percent to 908 million euros, or $1.14 billion. In organic terms, revenues gained 3.3 percent.

Asia, excluding Japan, and Africa and the Middle East combined registered double-digit growth, and Western Europe and North America also performed well, while sales in Latin America and the Asia-Pacific region lagged for the division, according to Henkel. Sales of home hair care, styling and coloring products expanded the company’s market positions, while Henkel’s hair salon business dipped slightly on-year.

In the first nine months of 2013, Henkel’s adjusted net income rose 20.5 percent to 1.26 billion euros, or $1.62 billion. Adjusted operating profit gained 17.3 percent to 1.79 billion euros or $2.29 billion, while group sales increased 6 percent to 12.5 billion euros, or $16 billion.

In the period, operating profits at Henkel’s beauty care division were up 0.3 percent to 365 million euros, or $467.9 million. Its sales grew 5 percent to 2.69 billion euros, or $3.45 billion.

“We are well on track and fully committed to achieving our targets for full fiscal 2012,” stated Henkel chief executive officer Kasper Rorsted.

Those targets include organic sales growth of between 3 percent and 5 percent, and an adjusted return on sales of 14 percent. Additionally, the firm confirmed its guidance for an increase in adjusted earnings per preferred share to 15 percent.