BERLIN — Under pressure from higher restructuring and one-off charges, German consumer goods company Henkel AG, the German maker of Schwarzkopf, Persil and Loctite, registered a 4.1 percent slip in third-quarter net income to 450 million euros, or $597.1 million.

Supported by all business divisions, sales rose 1.2 percent to 4.24 billion euros, or $5.62 billion. Adjusted for currency fluctuations, acquisitions and divestments, sales increased by 2.3 percent.

All dollar figures have been calculated at average exchange rates for the three-month period.
Earnings before interest and taxes declined 7.1 percent to 603 million euros, or $800.1 million, in the three months to September 30, dented by expenses related to current anti-trust proceedings in Europe.

On an adjusted basis, however, net income attributable to shareholders rose 6.7 percent, and EBIT was up 3.1 percent in the quarter. EBIT margin rose 0.3 percentage points to 16.4 percent.

For the full year, Henkel has now raised its guidance for adjusted EBIT margin to just under 16 percent, compared to the earlier projection of 15.5 percent.

Henkel said it expects all business units to contribute to this improvement. The group continues to forecast organic sales growth of between 3 and 5 percent and a high-single digit increase in adjusted earnings per preferred share.

Henkel’s beauty care business, which includes the Schwarzkopf, Dial and Syoss brands, delivered a 3.6 percent gain in sales to 918 million euros, or $1.22 billion euros, buoyed by strong growth in the emerging markets. Organic sales increased 0.8 percent. For the year ahead, Henkel is forecasting organic sales growth of about 2 percent.

EBIT for the division fell 20 percent to 98 million euros, or $130 million in the quarter. Adjusted for restructuring and one-time charges, EBIT was up 5.9 percent to 140 million euros, or $185.8 million.

RELATED CONTENT: WWD Earnings Tracker >>

Click Here for the WWD Global Stock Tracker >>

load comments
blog comments powered by Disqus