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Henkel Q4 Profits Dip 8%

Group sales declined 3.7 percent to 3.85 billion euros, or $5.24 billion.

BERLIN — Henkel AG & Co. posted fourth-quarter net profits of 321 million euros, or $436.9 million, an 8 percent on-year decline.

 

The Düsseldorf-based maker of Schwarzkopf, Dial and Loctite adhesives said its adjusted operating profit (EBIT) gained 7.5 percent to 584 million euros, or $794.8 million.

 

In the three months ended Dec. 31, group sales dipped 3.7 percent to 3.85 billion euros, or $5.24 billion. On an organic basis, revenues advanced 3.3 percent.

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Q4 sales at Henkel’s beauty care division fell 2.8 percent to 828 million euros, or $1.13 billion, while organically, they rose 2.2 percent.

 

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

 

Henkel’s 2013 net sales slumped 0.9 percent to 16.36 billion euros, or $21.72 billion, negatively impacted by foreign exchange effects. On an organic basis, revenues rose 3.5 percent. All regions and innovations contributed to the increase.

 

Henkel’s adjusted operating profit for the year grew 7.8 percent to 2.52 billion euros, or $3.35 billion.

 

The firm’s beauty care division’s 2013 sales were 3.51 billion euros, or $4.65 billion, down 0.9 percent. On an organic basis, revenues advanced 3 percent. The division’s adjusted EBIT gained 2.1 percent to 525 million euros, or $697.1 million.

 

Henkel expects overall 2014 organic sales growth to be between 3 percent and 5 percent. It anticipates an adjusted EBIT margin near 15.5 percent.

 

“The economic environment remains challenging, and we expect persisting foreign exchange effects, particularly in the first half of the year,” said Henkel chief executive officer Kasper Rorsted.