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Henkel Outlines Strategy Through 2016

The consumer goods giant's 2012 net income rose 30.6 percent.

BERLIN — Henkel AG confirmed its 2012 record sales and outlined the firm’s financial strategy and targets through 2016 at its annual general meeting held today.

 

Speaking in Düsseldorf, company chief executive officer Kasper Rorsted said he estimated organic sales growth of 3 percent to 5 percent for the current fiscal year, with adjusted return on revenues rising close to 14.5 percent and adjusted earnings per preferred share gaining nearly 10 percent.

 

“Today, our company is better positioned than ever before — not just in terms of our financials. Since 2008 we have also significantly strengthened Henkel both structurally and culturally; we have globalized our company and have become more competitive,” Rorsted said in a statement. “With our successful development during the last four years and a record year in 2012, we have laid a strong foundation for the next four years through 2016.”

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Henkel’s 2012 net income rose 30.6 percent to 1.56 billion euros, or $2.01 billion. Its adjusted operating profit increased 15.1 percent to 2.34 billion euros, or $3.01 billion, in the period.

 

The company’s full-year net sales were up 5.8 percent to 16.51 billion euros, or $21.23 billion.

 

Henkel’s beauty care division, which includes brands Fa, Schwarzkopf and Dial, registered adjusted operating profit up 6.8 percent to 514 million euros, or $660.7 million.  Sales for the branch increased 4.2 percent to 3.54 billion euros, or $4.55 billion.

 

Dollar figures are calculated at average exchange for the relevant period.

 

A dividend increase from 0.80 euros to 0.95 euros, or $1.05 to $1.24 at current exchange, per preferred share and 0.78 euros to 0.93 euros, or $1.02 to $1.22, per ordinary share for stakeholders was also proposed at the annual general meeting. The payout would equal close to 410 million euros, or $537.7 million. 

 

Henkel’s sales targets for 2016 include 20 billion euros, or $26.2 billion, of which half would come from emerging markets. The company also said it intends to further internationalize, simplify operations, extend its sustainability measures and outperform the competition during that period.

 

Henkel will release its first-quarter figures on May 8.