BERLIN — Driven by strong performance in developing markets, second-quarter net income for Henkel AG rose 8.8 percent to 607 million euros, or $685.4 million, adjusted for one-time charges, gains and restructuring charges. Sales for the period fell 0.9 percent to 4.7 billion euros, or $5.3 billion, impacted by negative foreign exchange effects. In organic terms, group sales rose 3.2 percent in the April-to-June period.
Adjusted for one-time charges and gains, and restructuring charges, quarterly operating profit for the Düsseldorf-based maker of Schwarzkopf, Dial and Loctite adhesives improved 6.6 percent to 819 million euros, or $924.8 million. All three business units contributed, the company said.
Henkel’s beauty-care division, which generates 21 percent of total sales, registered a revenue dip of 1.8 percent to 988 million euros, or $1.12 billion. Adjusted for foreign exchange, sales rose 3.6 percent in the quarter. Eastern Europe and Latin America contributed double-digit sales growth.
Dollar figures are calculated at average exchange for the period to which they refer.
For the first half of 2016, adjusted net income for the consumer-goods giant rose 8.2 percent to 1.16 billion euros, or $1.29 billion. Adjusted EBIT improved 6.4 percent to 1.57 billion euros, or $1.75 billion. Group sales for the January-June period eased 0.2 percent to 9.11 billion euros, or $10.17 billion, representing a rise of 3.1 percent in organic terms.
Beauty care sales dipped 0.4 percent to 1.94 billion euros, or $2.16 billion. Adjusted EBIT for the unit increased 4.3 percent to 329 million euros, or $367.1 million.
Henkel chief executive officer Hans Van Bylen confirmed guidance for fiscal year 2016, including organic sales growth of 2 to 4 percent and a rise in adjusted earnings per preferred share of 8 to 11 percent. He increased his forecast for full-year adjusted EBIT margin to more than 16.5 percent.
“We are facing a market environment which is becoming increasingly challenging, with moderate global economic growth, slowing growth dynamics, high uncertainties in the markets and unfavorable foreign exchange developments,” Van Bylen said. “We are committed to reaching our ambitious targets and will focus on leveraging our innovation capabilities, our strong brands and our leading market positions.”