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Henkel Net Gains 33.9 Percent in Q2

Company sales increase 1.6 percent.

PARIS Henkel Group’s second-quarter 2011 net profits increased 33.9 percent to 375 million euros, or $540.1 million.

The Düsseldorf-based maker of cosmetics and toiletries, cleaning products and adhesives posted sales of 3.95 billion euros, or $5.69 billion, up 1.6 percent in the three-month period ended June 30. Organic revenues gained 6.3 percent.

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

“Henkel continued its solid performance in the second quarter, despite the challenging market environment. We achieved high organic sales growth and outperformed once again our relevant markets,” stated company chief executive officer Kasper Rorsted. “All our business sectors contributed to this growth, and with double-digit increases in our growth regions, we improved the share of total sales in these markets to 42 percent.

“Despite higher raw material prices, we improved our profitability in all business sectors,” he continued. “This was driven by increased selling prices across all our business sectors, by our strong brands and innovations, as well as by measures to further enhance our efficiency.”

In the first half of 2011, Henkel registered net profits of 665 million euros, or $933 million, a 21.8 percent rise on the same prior-year period. Sales in the six months ended June 30 grew 5.1 percent to 7.78 billion euros, or $10.9 billion.

Henkel slightly increased its guidance for organic growth in 2011 to around 5 percent, from the upper end of the 3 percent to 5 percent range. The company maintained its previous forecast of an adjusted EBIT margin of about 13 percent.