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Henkel Q4 Profits Rise 68.4%

The German consumer goods and adhesives giant’s sales in the quarter gained 4 percent.

BERLIN — Henkel AG & Co. posted fourth-quarter 2012 total net income of 357 million euros, or $459 million, a 68.4 percent on-year rise, driven by gains in all of its business categories — including beauty, adhesives, and laundry and home care. Adjusted for non-controlling interests, net profits were 343 million euros, or $441 million.

The Düsseldorf-based maker of Schwarzkopf, Dial and Loctite adhesives, said its adjusted operating profit rose 8.4 percent to 544 million euros, or $423.1 million. Group sales gained 4 percent to 4 billion euros, or $5.14 billion.

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

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Despite challenging market conditions, the company’s full-year net sales rose 5.8 percent to 16.51 billion euros, or $21.23 billion. Its adjusted operating profit grew 15.1 percent to 2.34 billion euros, or $3.01 billion.

Henkel chief executive officer Kasper Rorsted said in a statement that “2012 was the most successful year for Henkel so far: We achieved excellent results in a highly volatile and competitive market environment and met or exceeded all financial targets.”

Henkel’s beauty care division registered fiscal-year sales of 3.54 billion euros, or $4.55 billion, a rise of 4.2 percent. On an organic basis, revenues advanced 3.1 percent. The division’s adjusted operating profit (EBIT) gained 514 million, or $660.7 million, with growth driven by emerging markets; Asia and the region including Africa and the Middle East posted double-digit gains. Business in North America improved, while sales in Europe remained flat on-year.

Looking ahead, Rorsted said he expected organic sales growth for 2013 to be between 3 percent and 5 percent, and anticipated increasing Henkel’s EBIT margin to 14.5 percent, while improving adjusted earnings per preferred share by around 10 percent.

Henkel will hold its annual general meeting on April 15.